I believe in capitalism, but I'm not into pretending that certain economic activity is pure capitalism when businesses have found circuitous says to defraud the govt while making it look at the middle-man (the consumer/student) is the bad or irresponsible party, or fall guy. For example:
1) the Feds took over the student loan market lately. Here's why. The banks convinced the politicians to allow them dispense money to students while taking a cut and imposing a fee. However, these are no-risk loans because the banks have the option of selling them to the govt if the student fails to repay as fast as the banks like. Moreover, the schools know that the banks will pay out whatever the schools demand, and it just means more money and no-risk to the banks. So the cost of education continues to skyrocket. It's a scam, really.
2) Mortgages are dispense similarly to students loans, and there were always explicit or implicit guarantees that banks would be able to sell the loans to the govt if they couldn't get their money back via foreclosure.
3) Not only is there little way to reliably compare prices for health care, but health care has become this--how fast can hospitals take down a family's insurance policy and bank account to zero so they can start charging the govt. The govt only takes over after the family of the injured or sick is in poverty and has no insurance left. The hospital knows the govt has deep pockets.
2 comments:
I believe in capitalism, but I'm not into pretending that certain economic activity is pure capitalism when businesses have found circuitous says to defraud the govt while making it look at the middle-man (the consumer/student) is the bad or irresponsible party, or fall guy. For example:
1) the Feds took over the student loan market lately. Here's why. The banks convinced the politicians to allow them dispense money to students while taking a cut and imposing a fee. However, these are no-risk loans because the banks have the option of selling them to the govt if the student fails to repay as fast as the banks like. Moreover, the schools know that the banks will pay out whatever the schools demand, and it just means more money and no-risk to the banks. So the cost of education continues to skyrocket. It's a scam, really.
2) Mortgages are dispense similarly to students loans, and there were always explicit or implicit guarantees that banks would be able to sell the loans to the govt if they couldn't get their money back via foreclosure.
3) Not only is there little way to reliably compare prices for health care, but health care has become this--how fast can hospitals take down a family's insurance policy and bank account to zero so they can start charging the govt. The govt only takes over after the family of the injured or sick is in poverty and has no insurance left. The hospital knows the govt has deep pockets.
Braying Pelosi
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