“Learning what is happening to the young people of America is part of facing the intimacy of the evil with which we are all struggling — as neighbors, family and friends continue to believe that it is socially acceptable to create financial wealth for themselves by poisoning our food system, originating debt bubbles, destroying our ecosystems and building a global surveillance and war machine. As a professional investment advisor, I find it challenging to invest in an economy in which so many powerful people are financially dependent upon human failure. Worst among them are those who are financially vested in the failure of our young people, for that is ultimately the failure of the future itself.” ~ Catherine Austin Fitts
By Catherine Austin Fitts
The Solari Report is a contributor to filmaker Mike Camoin and Student Loan Justice.org founder Alan Collinge’s new documentary in their effort to bring about sorely needed change to the fraudulent and predatory inducement of American students.
I encourage you to join us with your contributions and prayers. Let’s apply widespread power to this wrong which is destroying our mutual future.
From their latest posting:
The student loan scam has grown wider and deeper placing over 44 million Americans (plus their family and friends) under unprecedented financial hardship and chronic economic stress. Make no mistake, this is not a case of the “Bad Borrower.” This is a case of the “Bad Lender”.
Meet filmmaker Mike Camoin and Student Loan Justice.org founder Alan Collinge:
Ready to reveal the truth about student loan fraud and how to fight back – audiences will learn more about what they can do and when to take action.
Read more and join the team here. . . .
Related reading:
You know, I have mixed emotions about this subject, having just graduated my fourth debt-free child from a state university. I worked and saved so that each would have this. Some might call this privilege. But I didn’t send them to private schools because I could see the exorbitant tuitions that were being charged and knew that after one with a state school diploma graduated from medical school, she has the title ‘Doctor,’ just like if she graduated from Notre Dame undergrad. I think the schools and the debtors are the blameworthy ones as much as the lenders. General Motors will come and take your car from you if you don’t pay your loan, but there is nothing you can give back if you default on your school loan. Many schools, however have huge endowments that should be collateralized as surety for defaulting students. This would perhaps lead them to eliminate frivolous majors like Fashion Design or Hotel Management (which should be apprenticeships) and shrink the expenditures for all the ‘student life,’ athletics, professional coaching and scholarship goodies they afford through tuition. Debt forgiveness seems to indirectly punish the provident and frugal by leveling them with the spendthrift. It devalues debt as an asset and therefore adds risk and lower dividends for everyone. It might be the result of clever, predatory lending, but why would we favor this group of debtors over another?
Lots of lenders live in mansions and lots of college diplomas hang on the shabby walls of barristas, make no mistake about it. I don’t think the answer is pumping up the indignation of indebted students, however. The moral hazard for them is really not very much different from the bank bailouts that occurred so many times in our history. The first thing to do would be to reform the whole college racket and make it a merit based system, as it once was, rather than an entitlement, as it is today. It has been the government’s social engineering that has brought us here, and like any other freebie, there are strings. Let it be an object lesson for the would-be socialists who don’t seem to understand that very fact, sheepskins notwithstanding.
John:
I agree with many of the things you say but one. Much of the student loan debt issued between 1998-2006 was IMO fraudulently induced – under the law. This was a financial trap. The disclosure related to missing money, expected changes in incomes and the stripping of consumer protections was unacceptable to the point of rendering most student loans fraudulently induced. Add to that lending to banks at 0% and applying interest rates well about real GNP grown – plus the fee game.
Students and parents were played. Were some of them lazy, sloppy and stupid? Yes. Were the universities responsible – Absolutely – this is one of the reasons I refuse to give a dime to my alma mater. However, it is the responsibility of the governance system to govern and not allow all of these folks be lead astray – or behave badly.
So primary failure was Congress, the Executive Branch and the adults in the general citizenry that allowed the party to role on.
I don’t blame children for their mistakes when they are up against the smartest adults in the world looking to entrap them. That includes children who are being entrained with mind control into ridiculous notions. Rather than blame them, I work to bring transparency to the entrainment so we can shut it off and encourage parents to teach their children math when the schools will not do so.
Home school, home school, home school
You have the benefit of years of hard work and righteousness. That gives you great power. This is good
I want to bring the prodigal son home:
https://en.wikipedia.org/wiki/Parable_of_the_Prodigal_Son
Consider what is best for our mutual future.
Hope you have read this one:
https://home.solari.com/william-m-diefenderfer-the-financial-hit-man-of-student-loans/
Cathherine,
The parable of The Prodigal Son is wise and apt for this case. I would additionally point out the one of The Unjust Steward. The schools and banks have unjustly abused their positions of trust in student loans, and they should accordingly forego their profit from these loans, telling the students “take your debt and write half.” The Lord has provided us much guidance.
Yup. I agree.