This is my second post on the idea of asking the government to forgive all student loans as part if the stimulus spending, the first post dealt mainly with the logical reasons, and there will be more of that in this post.
The main purpose for the second in this series that could be titled “Let’s help people that were more victims that perpetrators”, is to focus on the moral imperative that we have as an adult generation to right the wrongs of the financial debacle created by the need to get an education past high school to earn a living wage and the banking industry’s exploitation of our youth on every complicit campus.
At the root of the problem is the exact same factor that drove the housing bubble, a financial opportunity for bankers and lenders fueled by the pursuit of the “American Dream”, a good dream that we all understand and appreciate emotionally. In fact, it was this emotional component enhanced with it’s own urban myths, “look at history, the more education the more money you will make, paying it back will be easy”, recognize the parallel between this claim and “Housing Prices Always Go Up?
If you do see the comparison it should come as no surprise, the same cast of characters were running the same scam, only this time instead of lower income blue collar workers and envious professionals keeping up with the Jones the targets were young students and their optimistic parents, who couldn’t say no to private schools they couldn’t really afford.
Driven and manipulated by their desires to compete and get into the schools on the “lists” people looked back decades and assumed that the past would predict the future, and in this case again that turned out to be a poor strategy.
The results for the financial institutions were the same sweet ride as housing, the false market they created with the loans did what economics 101 tells you it always will, it increase demand and therefore prices. A Lot, I mean at least double the rate of inflation, at the same time the market value of college degrees (outside of the fantasy land of Wall Street, until recently) were going down.
Bankers knew this, colleges knew this, some parents knew this (some still couldn’t say no, college search has become more emotional than logical), but since the kids could get the money themselves, and the banks were there to help with the forms, adding a credit card in for good measure (and 24% APR), they preyed on the youth of American like vultures on the buffalo shot from trains, with equal concern or remorse.
This is an evil act, worse than terrorism, at least they tell us they want our heads, whereas the banking community pretends to be helping us as they remodel million dollar offices, fly in private jets and hold parties that would make Croesus blush.
So what to do? Get mad, write your reps and senators and tell them before another dime goes to the perps we want a little to go the victims, the most innocent victims, the future of our country! Forgiveness will get our young folks back to spending on what’s next, instead of decades on an overprices product sold in a ponzi scheme every bit as heinous as Bernie Madoff’s grand rip off, and those investors were supposed to be experts. If you feel one iota of sympathy for those damaged by Madoff then you have to feel for the debt-laden kids.