Sally Mae ‘Next Economic Flashpoint
Aiming toward Disaster,’ Warns Moody’s
How dare these credit-rating agencies continue giving Barack Obama all this heat? Last week Standard & Poors lowered the Federal Government’s rating on bonds and U.S. paper from Aaa+ to an unheard of low Aa+ and also downgraded the government-owned mortgage giants Fanny Mae or Freddy Mac in the same fashion. And now the credit-raters at Moody’s are telling BO that the national student loan program (which Barack took away from the free markets and gave over entirely to the government roughly thirteen months ago) a.k.a. “Sally Mae” has within it the makings of the economic surprise-disaster of the year.
It works like this: just as the government decided 34 years ago that everybody must own their own home (by FORCING mortgage loan companies to make poor loans to unqualified buyers with the Community Reinvestment Act of 1977 a.k.a. CRA ‘77) and took the percentage of “suspect home loans” in the nation from 0.24% in 1975 to 34.2% by 2005 . . . the Obama administration has likewise decided to extend the idea of college loans to virtually every young person in the country. And just as the sub-prime lending crisis that sunk our economy from 2005 to 2008 was predictable from the very day President Jimmy Carter signed CRA ’77 into law . . . this Obama-formatted Sally Mae boondoggle, too, has a very predictable ending akin to a banana peel being dropped under your moving feet.
The obvious result of Sally Mae’s creation will be seen when all these new college grads will have ZERO jobs awaiting them when they leave school . . . with no jobs, they’ll have no noteworthy income other than food stamps (which Obama has recently authorized for college students as you probably know) . . . with only food stamps as “income” these students will not be able to repay their student loans e-v-e-r . . . and the effect of all those student loan defaults will, Moody’s appraisal of the situation warns, very likely mean that the present S&P Aa+ rating will degenerate into a much, much lowered rating by S&P, Moody’s, Fitch’s and other credit-rating agencies. The size of the now expanded student loan program will ensure that America’s debt to GDP ratio rises from its present 110% (following recent authorization to expand the debt-ceiling to $17 TRillion) to a Greece-like 128%.
Meanwhile Europe is burning courtesy of the riots in England; and the economic collapses of Spain, Portugal, Italy, Greece, Ireland, Hungary; and now perhaps Belgium and France as well . . . all the while the U.S. economy seems to be more and more rivaling these pathetically-poor (p-poor?) European role models. Just as an old folk song asked us Where Have All the Flowers Gone? and then led listeners upon a tragic house-that-Jack-built type story that wound up with all the military graveyards bursting into bloom . . . the Sally Mae program is a program created by blooming idiots holding the seeds of future economic disaster.
In response to the revelations by Moody, the Obama spin doctors and the Obama puppet master George Soros via his CREW people have been going wild trying to cover the President’s golf-playing tush. CREW, of course, is the much-quoted supposedly neutral (Citizens for Responsibility and Ethics in Washington) research group. Funded by Soros, (figures NOT included within the main $48 million in media funding that Soros has sponsored this year) CREW has never run a positive story on Sarah Palin and never run a negative story on Barack Obama and runs highly negative stories on Conservative issues eight times for every single mildly negative story on liberal matters . . . according to CREW, of course, the newly Obama-formatted Sally Mae is the greatest thing to happen to young people since condoms. Condoms with holes in them . . . more likely . . . .
As another gross and needless debacle looms, friends, can’t you just see young Barack holding the axe in his hand above the fallen economic oak known as the free market, “No, Father, not me -- the Tea Party, did it!”
Ya’all live long, strong and ornery,