Yeah, we all saw the movie, The Big Short. The greed of Wall Street sets our teeth on edge. Two small facts were left out of the movie.
First, without Freddie, Fannie, and the FHA, none of those questionable mortgages would have been made by the banks to begin with. Second, beginning with Bill Clinton, the idea that “every American should be able to own a house” pushed banks to make a percentage of minority loans or they were punished by Washington. Since, it was no risk loans, guaranteed by that same Washington, why not?
Hence, we all saw the carnage. People losing the houses they couldn’t afford. The entire economy hitting the skids. The bailouts, etc. Meanwhile, the very instigators of the problem, Dodd and Frank sponsor a law regulating Wall Street. Meanwhile, Freddie, Fannie, and the FHA go on their merry way insuring mortgages.
The very same thing now exists with student loans. Well over a trillion dollars and growing, student loans provide free money to the colleges and universities just as insured mortgages did to the lending institutions. Kids who can’t get through college are getting loans to try. Kids, who can, are leaving college with degrees that make it hard to pay back the loans.
But, the sick part, the really sick part, lies in the educational institutions. There is zero accountability to keep tuition costs down. In fact, Obama has stepped in and ensured they will go up even more. His proposed overtime pay rule will hit colleges hard. The University of California school system faces a $39 million-a-year tab for raises to avoid paying overtime to thousand of postdoctoral scholars, librarians, and specialists. This system is being run by an idiot who nearly bankrupted both the state of Arizona and the Department of Homeland Security, Janet Napolitano. The entire higher educational system is run by non-business types who never saw a budget they couldn’t increase. The community college near my home in Illinois, College of DuPage, had a scandal. The board woke up one day and found the administration was having a grand old party with college funds. But, they just fired the head guy without due diligence. Why not, they were just people who never ran anything, trying to do civic duty. The legal tab is now $3.9 million and growing. To be paid by higher tuition.
In Arizona, my second home, the Maricopa Country Community College District students have been hit with three tuition hikes since 2012. Investigations show it’s the same deal as the aforementioned COD situation. The administrators are giving themselves huge raises and big perks. See, no one is watching the store. Not at MCCCD, not at COD, not at the California system. They are institutions run by boards who like the football or basketball tickets,and the prestige, but are clueless about cost control. Politicians like those who created the $18 trillion debt at the national level.
See, no one stops coming to their schools because that same governments just gives bigger student loans. Sound familiar? No one will care until the young people really suffer like the people who lost their homes. Many are already. They won’t be owning anything for 10-15 years until they pay back the $100,000 in student loans. Then you get the real idiots who say free college. Can you imagine what those administrators can do with that? Unlimited demand for the product.
It’s sad and no one cares. I do and I hope you do since it’s a terrible injustice to our youth.
On a totally separate front, I have a good friend whose granddaughter is attending St. Louis University. She is participating in a program to raise money for Ronald McDonald House. It’s based on a voting system and if you are so inclined click on the link below and go to the St. Louis University option and cast a vote. You can vote once a day on any device. She would appreciate your time and your votes.
https://www.collegeavestudentloans.com/collegeavemadness/
I attended the University of New Mexico. I graduated debt free by living at home and tuition was reasonably low. My father worked for the feds when you had job security but not outrageous pay/benefits like now. So my sophomore year my books cost more than my tuition. Just as in the health care arena, the ultimate consumer isn’t setting the price because of interference with loans, etc. Rate of college tuition and medical care virtually identical over last40 years. Like they say, stupid is as stupid does. I’ve done fine with my education, didn’t need a prestige school to make it in the world, suites with spas to retreat to for a safe space. The sniveling cowards and idiots in and running colleges today should all fail!
Thanks Bill for supporting my grand daughter. If she wins this bracket tomorrow she only has 3left. Thanks again for all your help8+7
Thank you very much for sharing the link, Mr. Robertson! It is very much appreciated, and thank you to everyone who has been taking the time to vote!
Bill. Thanks again for supporting my grand daugher Courtney. I really appreciate it. She is now in the elite 8 hopefully heading to the bracket with 4 left Wednesday. Please vote earlly and often. Thanks again for everyone that has voted and is voting.