This may be the biggest accounting fraud in history

[*bfine32*]

(09-13-2019, 04:52 PM)oncemoreuntothejimbreech Wrote: Let's use your Maxine Water's source . . .

https://freebeacon.com/politics/waters-unaware-the-federal-government-nationalized-student-loans-in-2010/


There was this thing called a financial crisis of 2007-2008 which directly led to this other thing called the Great Recession caused by these private lenders knowingly making bad loans and knowingly selling derivatives based upon these bad loans which led to them being bailed out by the government.  What happens to credit during a recession?  It dries up.  At that time, they were lending less money across the board because they screwed up not just the lending business, but the whole global economy.  

Now, I need to see where you're getting that 97% figure.  Just like I needed to see where the WSJ's info came from about student loans paying for Obamacare which ultimately proved to be completely false.  There has been enough misleading or out right false information coming out of this WSJ article that I need to see evidence to believe otherwise.

And . . . explain nationalizing the market?

I have grown tired. But as a farewell gift:

https://www.nolo.com/legal-encyclopedia/what-is-federally-guaranteed-student-loan.html

Hopefully answers your 97% question:

Quote:The Guaranteed Student Loan Program (FFELs)

Quote:Under the guaranteed student loan program, private lenders—including Sallie Mae and commercial banks—issued student loans that were guaranteed by the federal government. Guaranteed loans are also called Federal Family Education Loans (FFELs). Here's how the "guarantee" works:
If a borrower defaults on a guaranteed loan, the federal government pays the bank and takes over the loan. The federal government pays approximately 97% of the principal balance to the lender. At that point the federal government owns the loan and the right to collect payments on the loan.

Hopefully answers you quest to have Nationalization explained:

Quote:The Direct Student Loan Program

Quote:Prior to June 30, 2010, lenders issued federal student loans either as guaranteed student loans or as “direct” student loans. Direct loans are issued directly by the federal government. Whether you received guaranteed or direct loans depended on which loan program your school signed up for.


After June 30, 2010, you can only get a federal student loan under the direct student loan program. A direct loan is made directly from the federal government to students. The federal government contracts with loan servicers to handle day-to-day loan management.