Posts Tagged Predatory Lending
August 8, 2012
Source Links and video text for Today’s Items are located at:
July 31, 2012
According to an investigation led by Democratic Congressman Elijah Cummings – for-profit colleges are paying executives massive salaries – not based on student achievement – but based solely on profitability. Looking at 13 different for-profit schools – the investigation found, “the single most significant measure for determining executive compensation at these schools is corporate profitability…rather than student achievement.” For-profit colleges rely heavily on government funding, with many schools receiving as much as 90% of their revenue from federal student loan assistance programs. Yet, they’re not producing good results. A quarter of all students who attend for-profit schools default after three years, while the default rate at public institutions is a mere 10%. Yet the for-profit school executives still get fat paychecks – like Strayer CEO Robert Silberman who made $41 million in 2009 alone. Educating the future American workforce used to be a part of the commons, because the economic security of the nation depends on well-educated workers. But now, the money-changers are in control – leaving students in debt, unprepared, and jobless.
July 28, 2012
As tuition prices continue to soar, Tim explains to his pal why so many students in places like Canada are taking to the streets by the thousands to protest the rising costs of education, and how their governments are trying to stop them.
July 24, 2012
He is one of the thousands who were tricked by French banks into accepting poisonous loans.
French banks set up subsidiaries which offered property loans to middle class families, on one condition: the homes could never be sold, had to be compulsorily rented and only banks, not the landlords, could select tenants. Then they received warning letters from banks.
Home owners realized the contract sent by banks had been illegally skewed whereby, they were forced to repay 6 times their initial loan and all their belongings were auctioned off.
July 19, 2012
We’ve known for 2,500 years that prolonged war bankrupts an economy.
We’ve known for 1,900 years that rampant inequality destroys societies.
We’ve known for thousands of years that debasing currencies leads to economic collapse.
We’ve known for hundreds of years that the failure to punish financial fraud destroys economies, as it destroys all trust in the financial system.
We’ve known for hundreds of years that monopolies and the political influence which accompanies too much power in too few hands is dangerous for free markets.
We’ve known for centuries that companies will try to pawn their debts off on governments, and that it is a huge mistake for governments to allow corporate debt to be backstopped by government.
We’ve known for 200 years that allowing private banks to control credit creation eventually destroys the nation’s prosperity.
We’ve known for 200 years that a fiat money system – where the money supply is not pegged to anything real – is harmful in the long-run.
We’ve known for 80 years that inflation is a hidden tax.
by: Tyler Durden
July 6, 2012
For better or mostly worse, the Federal Reserve has been governing the monetary system of the United States since 1914. The visual history below maps the rise of the Fed from its origins as a relatively minor institution, often controlled by Presidents and The Treasury to its supposedly independent and self-aware current position as, arguably, the most powerful entity in the world. And because we always like to be ‘fair-and-balanced’ we juxtapose this clarifying truth of the maniacal growth of the Fed’s balance sheet and shift from passive to hyperactive – highlighting every major macro-economic and political event on the way – with G. Edward Griffin’s 1994 speech on ‘The Creature From Jekyll Island’.