Post by
Cold_Zero »
https://forums.nicoclub.com/cold-zero-u2277.html
Wed May 25, 2011 5:42 am
Issac,
My point was that HCERA did not foster competition in Student Lending, it eliminated it. I apologize if that was not clear as at the time as I was fighting a migraine. I grew up in an age where my teachers taught us (students) that the Government’s job was to help foster competition or economic activity where a certain need, needed to be met. And you are right the guarantee (backing) of student loans not the Origination is not what is hurting us, that has been going on since 1965. But I think my point really goes to that fact that FFELP has existed since 1965, to help students with their post secondary educations. The Federal Government eliminated the program and effectively (through the Direct Lending) took over student lending, not because the program or the market was broken. If that were the case, we could blame the democrats for it because of their bill the College Afford-ability and Accessibility Act 2006? and the yearly Reauthorization which all took place under a Democratically controlled Congress (prior to the Bill). No, student lending was taken over by the government because it had to be used to fund Obama Care. But what really pisses me off about the whole thing, is that the student lending piece was attached to the Reconciliation Bill and it was never debated on its own merits. So much for O'Bummer's claim that his administration would be 'transparent', to put an end to back door dealing and to sign a bill 5 days after it is passed so that everyone has a chance to read it.
Trying to expand this to a bigger scale. Hypothetically, would you be ok with the Federal Government taking over all oil production and distribution in this country to pay for (say) a green energy program? Especially when they would turn around and grant ExxonMobil, BP and Dutch Royal Shell the exclusive contracts to administrate the distribution? Effectively, driving out of the market all medium to small gas stations and oil producers? Well that is what happened in Student Lending. Only the ‘Big Guys’ survived because they could weather the storm and pay for the startup costs to service the Governments portfolio (the RFP). I would love to see the CBA after this is all said and done.
Obviously, I was not implying that all our National Debt woes have been or will be incurred by this take over. But I think your post speaks volumes to the bigger problem. When we throw around billions of dollars in discretionary funding like it 'aint no thing'. This is why the TEA Party is so popular because we have all become 'comfortably numb' to these numbers and the past spending spree of our government from 2000 to present. When we are arguing over trillion dollar programs, the billions just dont seem as significant. That is what is appalling to me. Especially, as I pointed out, there was no clear and present danger (reason) to take over said industry. No, it was used to fund a pet project for the President, in hopes to secure his re-election. I'm sorry, the guy is in constant campaign mode and it really bothers me. (But this is not a debate about Obama, but Herman Cain so sorry to hijack it).