Good day all. Mad Maxine Waters has sort of slipped into the shadows now that we have Alexandria Occasional-Cortex working to be named the “Dumbest member of Congress EVER!” However, Mad Maxine is not one to give up her title without a fight.
She amply demonstrated this when she decided to start blasting bank CEO’s over the massive Student loan debt problem facing this country. Here are the details from The Washington Times:
House Financial Services Committee chairwoman Maxine Waters was brought up short Wednesday after she targeted banking chiefs over the student loan crisis, even though the federal government took over student lending in 2010.
At a hearing featuring a panel of seven bank CEOs, Ms. Waters ticked off figures on student loan debt and defaults, then asked, “What are you guys doing to help us with this student loan debt? Who would like to answer first? Mr. Monahan, big bank.”
To say that this line of questioning was unexpected would be an understatement. The problem the CEO’s faced was how to not call Mad Maxine an utter moron. (Although she is of course)
Bank of America chairman and CEO Brian Monahan replied, “We stopped making student loans in 2007 or so.”
Rather then pause and reevaluate, Mad Maxine continued trying to swallow both feet.
Ms. Waters replied, “Oh, so you don’t do it anymore. Mr. Corbat?”
Said Citigroup CEO Michael Corbat: “We exited student lending in 2009.”
Never let it be said that Mad Maxine knows when to quit when she’s behind, she doesn’t.
She then turned to James Dimon, JPMorgan Chase chairman and CEO, who explained, “When the government took over student lending in 2010 or so, we stopped doing all student lending.
It finally dawned on the thick as a brick Mad Maxine that now was a good time to stop shoveling.
At that point, Ms. Waters changed the subject, saying, “Thank you. What about small business?”
Needless to say, the Conservative commentators decide that it was a great time to open fire, and they let Mad Maxine have it with both barrels.
Conservatives chided Ms. Waters for the apparent blooper, with former Arkansas Gov. Mike Huckabee saying the exchange shows that “she knew nothing about student loans.” Fox host Maria Bartiromo tweeted that Ms. Waters “had no idea the government took over student loans.”
Now, the reason that the banks no longer deal with Student loans is simple. The whole process was nationalized by the CommuNazis in 2010.
The Obama administration eliminated the federal guaranteed loan program in 2010, putting the federal government in charge of student lending with the idea of saving taxpayer dollars by “cutting out the middleman,” as President Barack Obama put it.
And how did that work out for student borrowers?
Afterward, student loan debt exploded from $154.9 billion in 2009 to $1.1 trillion at the end of 2017, according to Investor’s Business Daily. Current student debt is estimated at more than $1.5 trillion.
The student loan problem is a disaster waiting to happen. The reason that the debt issues exploded are simple. The universities and colleges knew that they would get paid no matter what, and they started jacking their tuition into low lunar orbit. Add to that the problem that many of these degrees students are getting are utterly worthless in the eyes of future employers. Basically, anything ending in the word “Studies” will get you a job as a bartender, (And future member of Congress), or a coffee jockey at Starbucks, neither of which pay anywhere near enough to retire the debt in less than a lifetime.
When the banks handled student loans, one of the things they liked to look at was what you were studying. Things like the law, engineering, medicine, science, and anything that was basically useful to society, they generally didn’t have a problem with. When it came to anything with the word “Studies” in it, they had a big problem, and would call in the student and explain the facts of life to them.
In the case of Anger Central, I have to admit that the Angry Niece went for one of these junk degrees, hers being in psychology. When I found out what she was doing, it was far to late to do anything about it. However, she was lucky. My uncle, her great uncle, died with no family of his own and had set up a scholarship for the Angry Niece. Because of that, she was able to graduate debt free. (Something the Angry Brother, (Her father), stapled to her mortarboard when she graduated)
As to how we can correct the student loan problem, the first step is to send Mad Maxine off to the “Home for dumb, decrepit and corrupt Congressmen.” Next, restore the loan business back to the banks. Yes, there will need to be some oversight and whatnot, but the evidence is in that they handled things far better then the government.
Third, it’s time to go after some of these multi-billion dollar endowments many of these colleges and universities are sitting on. Harvard University alone could pay for every student attending their law school and medical school right through to the end and not even hit the principle. (Principle = the pile of cash they’re sitting on while living off the generated interest)
Stripping those endowments of their tax exempt status, unless they are actually used to pay for students education, might do wonders for the student loan problems. As for Mad Maxine and her recent counterattack for the title of “Dumbest member of Congress ever!”?
Thatisall
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