Tuesday, January 25, 2011

Banks Booming Under Obama

Banks are doing well as the business cycle repeats itself. This boom should be going full blast in 2012 so Obama will be re-elected. Obama-care will be kicking in by then too, increasing the spending on health, so even more of a boom. This recession is deep and long. So the recovery boom may drag on for 6 more years and thus elect President Pelosi. People may not like the boom/bust business cycle and want smoother economic growth, but cycles are here to stay. Politicians smart enough to manipulate the cycle may be able to stay in power longer. The unemployment rate is below 10% and CPI inflation even below that. Looks good for Obama, especially if he can capture Osama Ben Laden and quit pouring money down the middle east rat-hole.

“They’re out there to make money for shareholders and trying to do that the best way they can under a system they helped design,” said Simon Johnson, a professor at the Massachusetts Institute of Technology. “We’re just going through the same cycle again with pretty much the same incentives and power structures. Why would one expect anything different?”

http://www.bloomberg.com/news/2011-01-24/wall-street-partying-in-davos-as-bank-ceos-overcome-angst-after-crisis.html

Wednesday, January 12, 2011

Taxpayer Funded Degree Mills Owned by Goldman Sachs

Whether private or public, much of the tax money spent on college education is wasted. Like housing, education is financed by debt about which the borrowers are not fully informed, cannot really afford and will wish they did not get at some point. In most cases they do not need the product bought, and that product is often not of high quality. Fanny Mae, Ginnie Mae, Sallie May and such end up as ripoffs for taxpayers too. Privatization of housing and education should happen asap. Harvard tuition was $1000 per year, less than the cost of a car, back in the 50s. Now you pay more to get less.

"For-profit colleges are urging the U.S. Congress to change a law that threatens their access to billions of dollars in federal student aid, the companies’ biggest source of revenue."

"Education Management Corp., which is partially owned by Goldman Sachs Group Inc., the Washington Post Co.’s Kaplan education unit, may be at risk of violating the 90/10 rule..."

http://www.bloomberg.com/news/2011-01-12/for-profit-colleges-facing-taxpayer-funds-loss-fight-aid-limit.html