Color me shocked! A Chicago politician BUYING Votes. That has never happened ever. (Except in just about every Chicago election, that is.) Did the Obama administration commit ‘the biggest accounting fraud in history’ with student loans? Experts weigh in.
All you have to do is look at the pension crisis in Chicago. Chicago politicians promise the moon, but they never really care about how to pay for stuff.
In 2010, Democrats “nationalized the market to help pay for Obama Care,” WSJ asserted. “The Congressional Budget Office at the time forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.”
An effort to buy off the Millennial voter. No. A Chicago politician pandering to an electorate who can’t be bothered to read the fine print? Oh wait, that is exactly what Daley-the-Younger did when he sold the parking concession at a fire-sale rate, because he only needed a year or 2. (You think Daley-the-Younger retired as Chicago mayor because he wanted to spend more time with his family?)
“A widely known deficiency of the Federal Credit and Reform Act is that it does not allow the CBO to incorporate [market risk] into assessments,” Holtz-Eakin told Yahoo Finance. “So the loans, when they’re evaluated are evaluated as safer than they truly are, and thus, the losses are smaller than they may truly be. And there’s no way around that — the techniques force you to do that.”
But don’t worry, Bernie and Co. will allow clearing of student debt in bankruptcy and then all of the loans will be worthless, so we won’t have to worry about them at all. (Hat tip to Doug Ross.)