Tuesday, August 18, 2009

Paging Anti-DL Fighters

by Andrew Gillen

I’m hoping that the people who are against the looming Direct Loan monopoly in student loans can implement the idea below. As I’ve noted several times, most of the savings from switching to DL comes from turning the federal government into a loan shark. The bulk of the savings come from borrowing money at very low interest rates and then lending it to students at higher rates.

That business model (borrowing cheaply, lending more expensively) will generate the same savings in any lending market. If someone in Congress were to get the CBO to issue a comparable analysis for say the mortgage, auto, or the commercial lending market, the CBO, using the same methodology and assumptions as they did for student loans, will report massive “savings” if the government took over any of these.

This would put the pro-DL folk in a pickle. They could either come out in favor of having the federal government become the only lender in every single lending market, explain in tedious detail why student loans are somehow different (I don’t see how), or come up with a new rationale for imposing a DL monopoly.


Cowboy said...

Off Topic

Today we are at a crossroads in America that history will record as one of the most tumultuous periods since the Great Depression and the “New Deal”. I must affirm that I am genuinely inspired by the citizens of the United States that have seen the developing countenance of socialist policies advocated by progressive liberal ideology and compulsory adoption of such policies by the majority party and the President. The “Silent Majority”, the cornerstone of liberty, is engaged in discourse throughout the United States – from coast to coast, in rural areas to metropolitan areas. The air is filled with the voices of the many proclaiming that our federal government has gone too far and is out of control.

We have seen, and we continue to see the present administration and the Democrat controlled Senate and House turn a blind eye and deaf ear to so many Americans who aspire to see our federal government reigned in and restrained from forcing the will of the few on the many.

The current administration and the majority party have chosen to alienate the electorate. They have chosen to use rhetorical flourishes to marginalize and attempt to abridge the free expression of the electorate’s voice and opinions. They have chosen to assail voices of dissent, calling the free expression of ideas and proclamations, “fake”, “manufactured”, “organized by right wing extremists”. Never mind the double standard when they engage in similar, if not more radical protestations that they call “grass roots” movements.

Yet, in what may seem a dark hour for our beloved country, I see great opportunity. I am of the opinion that we must build from the ground – up. The electorate is the groundswell where Republicans, Libertarians, and Federalists must begin a very momentous change in the course that the President has precipitously and precariously chosen for our country. We must not attempt to “take-over” the current grassroots movement, but what we must do is to help it grow. We must not say that we are organizing it, but we must proclaim that we embrace the people’s right to exercise freedom of speech, and that it must not be abridged by the President and the majority party. We must listen to what the new grassroots movement is saying. This is about more than just the government takeover of healthcare. This is about everything from TARP to the takeover of healthcare, to cap and trade. These people need someone to turn to who will listen to their grievances.

The Senate Majority Leader and the House Speaker, along with their colleagues have labeled the Republican Party, “The party of ‘No’”. I accept that label.

No to multi-trillion dollar deficits!
No to a government takeover of healthcare!
No to Cap & Trade!
No to taxing corporations and businesses out of the U.S.!
No to unfunded mandates or law!
No to non-transparency by the Federal Government!
No to forcing the will of the few on the many!
No to union thuggery to abridge free speech!
No to European Socialism!
No to printing and spending money that the Federal Government does not have!
No to multi-generational theft!
No to Federal Government intrusion on State’s rights!
No to Barack Obama and Jon Tester in 2012!

Cowboy said...

I dare think of the consequences of Cap & Trade to all business in the U.S.

But just think what momentous costs it will add to earning a degree.