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View Full Version : Obama to Forgive Student Debts by Executive order - Banks Take Hit




Created4
10-25-2011, 09:35 PM
"Some student lenders are concerned about the White House move to encourage borrowers to refinance their loans because it could cut into their business. Banks and other firms that supply student loans stand to lose assets and likely lose income because of the conversion, said Shelly Repp, president of the National Council of Higher Education Loan Programs, Inc., which represents lenders.

Investors sharply sold off the stocks of some lenders, such as SLM Corp., parent of Sallie Mae, which saw its stock fall by nearly 13% Tuesday. Shares of education-finance company Nelnet Inc. fell by nearly 7%."

http://online.wsj.com/article/SB10001424052970204644504576653043088346786.html

Stick it to Wall Street, appeal to students, and trash the economy along the way. Who is the economic adviser(s) recommending these actions to this economically-challenged president? Let's see what comes out of Europe tomorrow regarding their sovereign debt crisis. We may see Wall Street panic on scale worse than 2008.

Cowlesy
10-25-2011, 09:44 PM
He's not going to forgive student debt by executive order. It will never happen.

It's like he lives in a parallel universe.

You know what will happen if they made lenders forgive chunks of principal on these student loans?

The student loan market would dry up, and parents would end up paying about 5x the rate of interest they're paying now as they REALLY struggle to send their kids to school.

The cynical view would be, the loan market dries up, and schools are forced to cut salaries/staff.

Never his intention, but that could be the end result.

Go for it, Obama.

HOLLYWOOD
10-25-2011, 09:51 PM
Banks never take a hit... they write it off against the taxpayer.

Obama is a Puppet to the TPTB and Elitists... this fucker is centralizing government to control all financing of secondary education.

Anti Federalist
10-25-2011, 09:56 PM
My first thought was: "by what authority does the president have to even do such a thing?"

Then it hit me...

Why not?

Just another example of the Imperial Presidency.

The Rubicon has been crossed long ago.

If the Executive can kill us just on his say so alone, I reckon he can make loanholders stand on their heads and jerk off, if he says so.

specsaregood
10-25-2011, 10:01 PM
I reckon he can make loanholders stand on their heads and jerk off, if he says so.

at least you could sell a feed of that online and make a profit.

Feeding the Abscess
10-25-2011, 10:20 PM
I'm down with repudiating student debt, then completely eliminating any role the federal government has on the issue - including closing the department of ed and eliminating all federal government student aid immediately.

amy31416
10-25-2011, 10:29 PM
I'm with Cowlesy--never gonna happen.

There might be some fascinating dog & pony show where Obama has this pathetically "epic" battle with the Republicans though, so at least the progressives can justify voting for him and blame things on the "teabaggers".....again. Just ridiculous.

Oh, and both AF and Specs are pervy weirdos. Just wanted to get that out there in case it wasn't crystal clear yet. :)

Keith and stuff
10-25-2011, 10:53 PM
I think Obama was going to make all future student loans government loans only? If that happened, the market for future loans wouldn't need to dry up in a response to a hypothetical executive order about student loans.

moostraks
10-25-2011, 11:06 PM
Hmmm, how convenient...it is like the media from OWS is giving Obama the check list of bribes to be made. Too bad the public is by and large not going to realize it is a shell game. All they will hear is Obama is doing xyz and not realize that he merely relocated the issue. Iraq War is over- check, student loans too expensive-check, next? His constituency will vote for him again because he finally got tough in their opinion. They don't care if it is by executive fiat because they are getting what they complain for given to them (in their world of illusions where everything is peaches and cream) all before the first snow flies...

kylejack
10-25-2011, 11:14 PM
He's not going to relieve principal, I am fairly certain of that. Maybe he'll do a refinance program.

heavenlyboy34
10-25-2011, 11:31 PM
edit: n/m

Anti Federalist
10-26-2011, 12:04 AM
I'm with Cowlesy--never gonna happen.

There might be some fascinating dog & pony show where Obama has this pathetically "epic" battle with the Republicans though, so at least the progressives can justify voting for him and blame things on the "teabaggers".....again. Just ridiculous.

Oh, and both AF and Specs are pervy weirdos. Just wanted to get that out there in case it wasn't crystal clear yet. :)

Wouldn't "pervy" be an adverb?

Endgame
10-26-2011, 12:10 AM
I can't believe I never realized these were public companies.

I wonder if shorting these parasitic fuckers will be a good way to profit from the inevitable burst of the higher education bubble.

amy31416
10-26-2011, 12:11 AM
Wouldn't "pervy" be an adverb?

I don't know from "adverbs" ya big ole weirdo. I'm a scientist, dammit.

(At least that's the excuse I give for my literary failings. I hated sentence structure and all that bullshit. Ya'll can put yer gerunds where the sun don't shine. Don't tell anyone that I'm a complete failure at sentence structuring and stuff, I'd be mortified!)

:)

DamianTV
10-26-2011, 12:58 AM
You must spread some Reputation around before giving it to HOLLYWOOD again.

Blah! Beat me to the same train of thought!

heavenlyboy34
10-26-2011, 01:30 AM
Wouldn't "pervy" be an adverb?
No, an (irregular) adjective. Adverbs almost always end in -ly.

Diurdi
10-26-2011, 02:00 AM
The lossess will be socialized to the taxpayer, like always.

RonRules
10-26-2011, 02:49 AM
Here's the compromise I predict Obama will offer. He's going to forgive the loans that either have defaulted or close to default (makes the bankers happy) and this will win the support from his most leftist base.
Who pays? The honest middle class.

CaptainAmerica
10-26-2011, 03:07 AM
He's not going to forgive student debt by executive order. It will never happen.

It's like he lives in a parallel universe.

You know what will happen if they made lenders forgive chunks of principal on these student loans?

The student loan market would dry up, and parents would end up paying about 5x the rate of interest they're paying now as they REALLY struggle to send their kids to school.

The cynical view would be, the loan market dries up, and schools are forced to cut salaries/staff.

Never his intention, but that could be the end result.

Go for it, Obama. that sounds like a mess. Obama is a tatorship

CaptainAmerica
10-26-2011, 03:08 AM
http://images.sodahead.com/polls/000361189/polls_tater_tots55_4408_643467_answer_1_xlarge.jpe g

this is a TATORSHIP!

A Son of Liberty
10-26-2011, 03:09 AM
The lossess will be socialized to the taxpayer, like always.

I wish my losses were socialized to the taxpayer. Unfortunately, I have this nagging sense of responsibility for my obligations.

I hate it.

RonRules
10-26-2011, 03:11 AM
He's not going to relieve principal, I am fairly certain of that. Maybe he'll do a refinance program.

They'll play with the words like here: "The president is also expected to say the administration is moving up the start of a program approved by Congress that caps monthly student-loan payments for borrowers with low incomes, from 2014 to 2012."

If he caps the payment, who pays the difference? (Unless it's a longer term re-fi)

ZanZibar
10-27-2011, 06:09 PM
http://www.youtube.com/watch?v=D6kLLFJ-6BE&feature=uploademail
http://www.youtube.com/watch?v=2hAT3j_pEoo&feature=uploademail