tag:blogger.com,1999:blog-31670799.post7880577312154645514..comments2023-11-02T09:44:15.693-04:00Comments on The Center for College Affordability and Productivity: The Student Loan Crisis RevisitedCenter for College Affordability and Productivityhttp://www.blogger.com/profile/18041956958538598371noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-31670799.post-2514078262503236122009-01-15T02:58:00.000-05:002009-01-15T02:58:00.000-05:00I have been reading your blog. I thought it's nice...I have been reading your blog. I thought it's nice blog.<BR/><BR/><A HREF="http://www.repaymentstudentloan.com" REL="nofollow">repayment student loan</A><BR/><A HREF="http://www.loansforstudent.net" REL="nofollow">loans for student</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-31670799.post-26629725896628666082008-02-19T10:01:00.000-05:002008-02-19T10:01:00.000-05:00From: 247WallSt.comSigns Point To Banking Crisis G...From: 247WallSt.com<BR/><BR/>Signs Point To Banking Crisis Getting Much Worse<BR/><BR/>The evidence comes in in pieces. One bit of bad news here and one there. <BR/>Today, the FT reported that US banks had tapped the Fed’s Term Auction Facility for over $50 billion in the last few weeks. As one analyst pointed out "The TAF ... allows the banks to borrow money against all sort of dodgy collateral,” says Christopher Wood, analyst at CLSA. “The banks are increasingly giving the Fed the garbage collateral nobody else wants to take ... [this] suggests a perilous condition for America’s banking system.”<BR/><BR/>The news that Credit Suisse (NYSE: CS) had "found" $2.85 billion in write-downs for asset-backed paper was not terribly encouraging. It is certainly an indication that banks are still having substantial problems valuing assets which are based on a weakening housing market and do not trade because of a locked-up credit markets. The banks can guess at the value of what they hold, but have no way to know for certain.<BR/><BR/>There is also an emerging body of analysis which says that large banks may have to write-down about $15 billion in LBO loans in the early part of this year. According to The Wall Street Journal "the extent of the damage is likely to emerge as banks file their annual reports next month and report first-quarter results in April."<BR/><BR/>None of these calculations take into account the falling value of paper backed by student loans, credit card debt, or loans for car purchases. They also leave out a potentially massive hit if bond-insurers like MBIA (MBI) or Ambac (ABK) face cuts in their credit ratings. <BR/><BR/>The total market in LBO debt now runs around $200 billion. The size of the mortgage-back and consumer-credit markets can only be guessed at. Write-downs for some of these securities have not begun in earnest.<BR/><BR/>The debacles at AIG (AIG) and Credit Suisse are surely a sign that financial companies and their auditors are having trouble putting a dollar amount on assets for which there is not market.<BR/><BR/>Every sign, and that is every sign, points to bank and brokerage write-downs in 2008 which will make 2007 seems like a picnic.<BR/><BR/>Douglas A. McIntyreRWWhttps://www.blogger.com/profile/16345147132602206121noreply@blogger.comtag:blogger.com,1999:blog-31670799.post-62677515316406572002008-02-17T22:50:00.000-05:002008-02-17T22:50:00.000-05:00Richard,This is not a credit event w/ student loan...Richard,<BR/><BR/>This is not a credit event w/ student loans, it's a liquidity event. A lot of the noise this week has to do with auction rate securities. This market collapsed last week and not just for student loans. A lot of state FFELP lenders rely heavily on this market (as do the for-profit FFELP lenders). The bond insurer issue is weighing heavily over the market right now. If these guys are downgraded (Ambac, MBIA, and so on), it means more loses for the financial sector as banks have to write-down the value of their investment portfolios. Some estimate another $200 billion in losses. That's got everyone skitish, and sitting on the sidelines.<BR/><BR/>A lot of the smaller FFELP lenders have had to exit the business because they don't have the balance sheets to eat the losses from today's financing costs like the big boys do. It doesn't help that as a FFELP lender, you are subject to volatility in your cost of capital that you can't pass along to the customer as you correctly point out b/c of government interference.<BR/><BR/>It's a great time for those who support the Federal Direct Loan Program (FDLP) which is entirely run by the government since any loss of market share by FFELP will presumably be a gain for FDLP. I know of no other industry where the government directly competes against private enterprise.Patrick Botthttps://www.blogger.com/profile/02805052502760038694noreply@blogger.com