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White Flags Unfurled

R.3 Wrote: May 08, 2012 10:37 AM
We are seeing the same thing happen to the college loan business as happened to the housing industry. Payment for the "product" is guaranteed by the gov't, the standards to qualify are artificial, and personal responsibility is not required to seek a deal where you get your money's worth. Colleges and universities, like so many others who make money from guaranteed govt loans, are gouging the consumer and, indirectly, the tax payer who ends up paying for all the defaulted loans. This bubble, too, will burst when enough unemployed college grads can not find a job that will allow them to pay off the loans. Once again, the loser will be tax payers who would never agreed to a govt take over of the student loan industry if given a choice.

Used French Rifle For Sale...Only Dropped Once

Something interesting happened last week—there was an epiphany. It wasn't a Eureka moment about the shabby state of this recovery. It was deeper than that for sure. The stock market sold off on Friday over the realization that white flags are going up all over the country as people are walking to the dugout of life. While the French ditched their closest attempt at true capitalism after one term with Sarkozy, the American people were making a similar retreat from the greatness of free markets as hundreds of thousands bolted from the labor...