The Fed's Credit Report

This is a damned disgrace - I've been trying to explain to people what the following article clearly articulates. As the unemployed recognize, there isn't a lack of skills in this country, but a lack of jobs due to outsourcing. The two areas that are doing well, because the pundits have convinced the gullible americans that their kids won't have a chance in this economy unless they jeopardize the equity in their homes - using it as collateral to obtain the loan that their son/daughter needs to get an education - indebting their kids and perhaps themselves for a lifetime since student loans ARE NOT dischargeable in a bankruptcy and will follow both to the grave - they will garnish wages including social security. AMERICANS MUST UNDERSTAND THIS - in addition, cars can be repossessed...the gangsters are at it again::: What's worse is that the taxpayers will need to bail them out again as they are back at the trough, playing the same games that got the globe into this financial disaster.

The Fed's Credit Report

"What's disturbing about the report is that the two main areas of improvement are auto loans and student loans.

So, we're back to "Square 1", right? GM is offering "72 months zero percent financing" to people with dodgy credit. And then the dodgy loans are being chopped up, glued together, and sold to as bonds to "yield seeking" institutional investors around the world.

The credit issued via student loans soared from $317 billion to $342 billion from December to January, a $25 billion windfall in just one month. But, as we pointed out in an interview with Professor Alan Nasser, the student loan business is the biggest swindle of all. Bigger than subprime by many orders of magnitude. Here's an excerpt from the interview:

MW--Is it fair to say that the student loan industry is a scam that targets borrowers who will never be able to repay their debts?

Professor Alan Nasser---"It's as fair as fair can be....How many of these students are subprime borrowers? That is, how closely do student loans resemble junk mortgages? The answer hinges on three factors: how these loans are rated, how likely the borrower is to repay, and the default rate on student loans."

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