The Bankers are planning to steal social security

Quote of the Day
July 12, 2010

‘Erskine Bowles the co-chair of President Obama’s
Deficit Commission, and a director of the Wall Street
investment bank Morgan Stanley, claimed that the
current economic crisis (which is projected to add more
than $4 trillion to the national debt) was “largely
unforeseen.” This is not true. Competent economists saw
the crisis as an inevitable outcome of the housing
bubble. It is remarkable that the deficit commission
seems to be relying exclusively on economists who could
not see this $8 trillion bubble, the collapse of which
wrecked the economy.

‘The commission also does not appear to be considering
any measures that would challenge powerful interest
groups like the pharmaceutical industry, the insurance
industry, highly-paid medical specialists, or the Wall
Street banks. Rather than incur the wrath of these
powerful interest groups to rein in medical expenses or
reduce the rents earned by Wall Street bankers, the
commission seems intent on taking back Social Security
and Medicare benefits for ordinary workers. The
reporters covering the commission should be reporting
on the failure of the commission to follow its mandate
in this respect.’

Economist Dean Baker
Beat the Press
July 11, 2010

How About A Bail-Out for Young People?


Students in Dire Need of Debt Relief:

Government Vastly Undercounts Defaults

Many More Students Are Defaulting Than Official Tallies Show 1

Photo illustration by Ron Coddington


By Kelly Field

Chronicle of Higher Education

July 11, 2010 – The share of borrowers who default on their student loans is bigger than the federal government’s short-term data suggest, with thousands more facing damaged credit histories and millions more tax dollars being lost in the long run.

According to unpublished data obtained by The Chronicle, one in every five government loans that entered repayment in 1995 has gone into default. The default rate is higher for loans made to students from two-year colleges, and higher still, reaching 40 percent, for those who attended for-profit institutions.

The numbers represent thousands of students like Lourdes Samedy, of Boston, who ended up defaulting on about $7,000 in student loans after completing a nine-month-long medical-assistant program at Corinthian Colleges Inc. Everest College, and now cannot get a job.

Continue reading How About A Bail-Out for Young People?