An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Thursday, May 16, 2013
Elizabeth Warren — Student Loan Policy Should only Reap $15 Billion Profit for Government
Apparently thinking that the current "profits" reaped by the government for student loans is juuuuussst a tad too high, progressive champion Senator Elizabeth Warren is proposing to trim the interest rates that some students pay the government a bit, to the same rate as the Fed charges some banks under a banking system regulatory regime.
McCardle is not sure this is a good idea, as the banks are certainly a better credit risk than recent college graduates...
Tarpley is on board, as this libertarian thinks the independent Fed should make loans directly available to the public, blind as a bat to the US Congress' authority to directly support higher education through fiscal policy...
HuffPo is reporting on a related poll that has identified over 250,000 MoveOn.org people who support this government 'profit' reduction...
Daily Kos also makes the case that these government 'profits' are just a bit too high and would like to see these 'profits' reduced somewhat...
Moron, moron, moron, moron and.... moron... (I think I got them all ... oh, save the 250k MoveOn people...)
We're still in BIG trouble folks and have our work cut out for us.
Matt, you're depressing me.
ReplyDeleteWha tis the old saying about the "blind leading the blind"?
Paul I dont think these people will ever get it via the math...
ReplyDeleteSo perhaps we have to also (for some) point out just the absurdity of their ideas... challenge/confront them this way...
See what happens...
And I would make the point again here that all we have to do now that the banks have apparently blown themselves out of this former market of theirs (student loans), is get the govt people (like Warren here) to see that they dont have to "make a profit for the govt" (shouldnt be hard?!?!) and that what they are really doing is foisting a tremendously UNFAIR TAX (not to mention mathematically impossible policy ultimately) upon our young who want to pursue higher education which is in our nation's long term best interests and should be made as simple/easy as possible for them financially...
Then it can become a tax reform issue perhaps... which should be easier now politically because the banks have blown themselves out here and dont "have a dog in the hunt" anymore...
So we have the banks out of it, but now Warren, who has no shortage of what I term "banker hate" imo, about her, is actually PUTTING THE GOVT IN THE POSITION OF THE BANKS which she is supposed to hate in the first place...
she is actually PUTTING HERSELF in the place of her nemeses the banks here and attempting to charge the students "interest" to make a "profit" for the govt ... good job Warren you moron!
I dont get how her brain works...
Hang in there Paul... rsp,
it is a step in the right direction though.
ReplyDeletedave,
ReplyDeleteTruth has to trump political partisanship or the left will get nowhere..
A bad policy is still a bad policy this is not a matter of degree..
It IS a step in the right direction as far as now it should be easier to make the case for use of fiscal policy to facilitate higher education... as the banks will not put up as big of a protest as they are out of the picture now...
rsp,