O-MAN BACKS BANKRUPTCY OPTION FOR STUDENT LOANS
Problem: A certain President of the United States is down in the polls. His support among young voters is at an all-time low. Question: Given that time is running out, what can this desperate president do to increase his support among young voters as quickly as possible? Answer: What he always does; placate the ever-loving crap out of them. Barack Obama style.
And – what better way to placate the ever-loving crap out them than by doing what this president does best: Lose more taxpayer money! Why, hell – he can pander to college students for their votes and stick it to the taxpayer at the same time; what could be better in the eyes of a wealth redistributor?
Moreover, this suck-up job doesn’t even require said president to circumvent the U.S. Constitution, ignore the will of the Congress, defy existing laws or implement laws of his own through royal edict. Nope, all he needs to do this time is urge Congress to make it easier for young people to be able to discharge at least part of their government-backed student loans by filing for bankruptcy protection. (Of course, there’s that “C” word again; if Congress fails to heed the master’s wishes, I smell another executive order coming down the tracks.)
O’s “recommendation” wouldn’t affect the majority of student debt – which is issued by the federal government. Nope, it would apply to “only” the approximately $150 billion of outstanding student debt issued by private lenders. (Notice how O’s not about to let students off the hook on money they owe the government. But private lenders? No problem; he can screw the lenders and stick it to the taxpayers for far less money that it would cost him to allow default on government-owned student debt.)
Here’s the brilliance of O’s strategy: Republicans, being the evil fiscally-responsible curmudgeons they are, are generally opposed to the idea – given that it would likely result in taxpayer losses. As a result, should Congressional Republicans block O’s efforts to modify the existing law, he can trot out to the teleprompter and announce that Republicans have moved on from their “war on women” to a “war on students”! That way, O wins – whether his irresponsible recommendation is approved or not. What a cagey community organizer.
Private lenders, who also oppose the idea, say the suggested change could drive up interest rates, since the risk of losses would increase. (a fundamental concept of private industry which is totally lost on liberals.) Lenders argue (correctly) that bankruptcy provides too big a temptation for students to simply walk away from their debt obligations because, unlike most homeowners, for example, the vast majority of students lack major assets.
Republicans and private lenders obviously don’t get it; O wants to teach young borrowers right off the bat that if you choose not to honor your commitments and responsibilities – just walk away and let somebody else take care of them. Great idea. That sure won’t set the stage for even more irresponsibility somewhere down the road, right? No – not at all. But hey – it’s the liberal way.
Barack Obama and shirking responsibility; like two peas in a pod.
Of course, after the kids default on their loans, they can always go on food stamps. And unemployment. And disability.