$68M of student loans required this year to fund educations, but BoA decides to halt/discontinue their student loan programs.
Peter Schiff's take: This action will cause Universities to cut back on expenditures and tuition will (over time) fall/become more affordable.
Regarding recent Merrill Lynch $6.5B write-down and subsequent stock rally: Peter says people are believing the fed won't let ML fail -- though they should. Peter still thinks US stocks and the US dollar are in serious trouble...
3 comments:
Peter is correct, but what I am afraid of is that the goverjment will delay this happening becuase of special interest whoch will demand the sam treatment the COngress gave the lending instiutions and the home builders ... bailouts.
The fundmental problem that is hapening is not inflation or the housing market or the even bigger upcoming commercial real-estate bubble or poor sales. These are just symptoms
The problem is the government. They are trying to manage the economy and the result is what we are seeing now. Every government that tries to manage and regulate the economy will fail becuase the power of the "free market" (Read Wealth of Nations to understand this) will correct this imbalance the government is creating.
THe more the imbalance the more severe the correction will be.
As much as people do not want to here it ... buinesses must fail and business models must adapt ... the more government subsidizes failing businesses (hello auto manufacutuers and airlies) the more expensive it becomes for all of us
Becuase these bailouts are essentially taxes on us Americans to prop up a business that should fail and that will lead to higher prices
We see in it cars, airline fares, education, medical care, etc ..
Everything the government is involved in will lead to less qualilty, wosrse service, greater innefiiciancies and higher costs.
Anon,
Agree the gvt is tring everything to delay the full blown effect. That is why we're seeing the dollar tank.
Good points. I will try to find/read the book.
Thanks for posting up
Randy
Post a Comment