Tuesday, September 10, 2019

Obama's Student loans




We should not be surprised to find the left concentrated in institutions where ideas do not have to work in order to survive.--Sowell Mom has to go to West Virginia again. Getting cool. I am still amazed the NFL has allowed the Brown-Patriot deal. It just makes them look awful. Lynn Swann resigns at USC.

“Climate change is an existential crisis,” Senator Elizabeth Warren declared Tuesday. Think about that. These people are so silly.

It's curious that people so opposed to the direct democracy of the Brexit vote are also opposed to the Electoral College.

A guy named Jules Gomes was going to give a lecture in Oxford with the title "Feminism was women’s great enemy—until transgenderism came along. " Fortunately the local fathers (and mothers) banned him and his talk. The Oxford City Council is led by the highly qualified Ian Brooke, who, in case you didn’t know, has a degree in Leisure Management (Magna Cum Laude). Gomes describes himself in this way: "As a brown-skinned person of Indian origin with a French first name, a Latin second name and a Portuguese surname, speaking six Indian languages, a wife who loves wearing saris, an immigrant who has lived in a slum in Mumbai, holding “very different” ideas to the Oxford-elite progressives and with a PhD from Cambridge University, I could have been Ian’s mascot for diversity!"

One might hope that American politicians maintain a level of publicly professed but insincere high-mindedness, with  mild incompetence, not too much corruption and with minimal military adventures. Since the great men who created this country, with a few notable exceptions like Lincoln, this has been the unspoken democratic ideal. But the times, they are a'changin'.

George Will, writing about the coming election of 2020 wrote, "After Mueller’s report, the 2020 election will be about various normal issues — health care, the economy’s strength and the equity of its results, etc. — but above all it will be about this: Is the current tone of public life, which is set by the president, the best America can do?"

Eustress: A positive, beneficial form of stress. Coined by the endocrinologist Hans Selye (1907-1982). From Greek eu- (good) + stress, from shortening of distress or from Old French estressei (narrowness or oppression), from Latin strictus, from stringere (to bind tight). Earliest documented use: 1950s.
Selye worked in Montreal developing steroids for clinical use and thought they were the magic elixirs of youth. He married Judge Drew from Pittsburgh and had a daughter, Cathy, who lived on Beacon, went to Ellis and got swept up in the 60s.

On September 10, 2008, scientists successfully flip the switch for the first time on the Large Hadron Collider (LHC) at the European Organization for Nuclear Research (CERN) lab in Geneva, kicking off what many called history’s biggest science experiment.


                    Obama's Student loans

This, if true, is bad news.

The Wall Street Journal’s editorial board (WSJ) recently suggested that the Obama administration pulled off “the biggest accounting fraud in history” with student loans when eliminating the role of private lenders in the federal student lending market.
In 2010, Democrats “nationalized the market to help pay for Obama Care,” WSJ asserted. “The Congressional Budget Office at the time forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.”
The WSJ op-ed also highlighted the rising number of severely delinquent student loans since then and blamed the Obama administration for expanding plans in 2012 for new borrowers “to reduce defaults, buy off millennial voters and disguise the cost of its student-loan takeover.”
The editorial board then added: “This may be the biggest accounting fraud in history.”
WSJ argued that eliminating private lenders from the student loan market severely hurt Americans and that by using fair-market accounting, it becomes clear that student loans will actually cost taxpayers nearly $307 billion over the next 10 years.
Douglas Holtz-Eakin, former director of the Congressional Budget Office (CBO) during the George W. Bush administration and currently president of the center-right American Action Forum, agreed that the accounting discrepancy manifested because of the “technique” used by the CBO to evaluate the cost of these loan programs.
“A widely known deficiency of the Federal Credit and Reform Act is that it does not allow the CBO to incorporate [market risk] into assessments," Holtz-Eakin told Yahoo Finance. “So the loans, when they're evaluated are evaluated as safer than they truly are, and thus, the losses are smaller than they may truly be. And there's no way around that — the techniques force you to do that.”
He added that “that's why when you when they switched from the private loans to the government loans, it appeared to save money... that is misleading. I don't disagree, but it's not the CBO's fault — those are the rules.”
Sheila Bair, the chair of the U.S. Federal Deposit Insurance Corporation (FDIC) from 2006 to 2011, agreed that the WSJ was “right to call out the government” on the accounting issue and stressed that it is “a huge problem with federal budgeting and transparency generally.”
if a borrower decides that they want to increase their monthly repayment amounts, instead of being able to pay back loans quickly, they’re capped out because the repayment structure is based on their income. Hence, the borrower — despite being able to increase payments — is stuck with a loan that’s accruing interest for possibly 20 or 25 years.
When the Obama administration “got rid of the guarantee program with the private sector out of the process and made it a direct federal loan, they got rid of all underwriting,” Holtz-Eakin noted.
“And so they recreated the worst aspects of the subprime mortgage lending crisis,” he stated. “They gave anyone who walked up a loan, without any notion of their capacity to repay."
(from Yahoo)

Well, you don't want to be judgmental.
Obama just looks worse and worse. But he was likable. First things first.

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