Archive for 2019

HIGHER EDUCATION BUBBLE UPDATE: WSJ: The Great Student Loan Scam.

Defaults have fallen for most forms of consumer debt as the economic expansion continues. Mortgage delinquencies last quarter hit a historic low. But severely delinquent student loans have soared since 2012 and are now 35% of “severe derogatories”—more than credit cards (23%), auto loans (21%) and mortgages (11%).

About 10% of the $1.5 trillion federal student-loan portfolio is 30 days or more past due. Another 20% is in deferment or forbearance, and about 30% is in income-based repayment plans that allow most borrowers to cap monthly payments at 10% of discretionary income and discharge the remaining balance after 20 years or 10 for folks in “public service.” . . .

Income-based repayment plans have also encouraged schools to raise prices and enroll students who probably won’t earn enough to pay off their loans. Someone with a master’s degree in dance from New York University shoulders on average $96,000 in debt, according to government data. Imagine if the government created income-based repayment plans for mortgages. . . .

But many loans will be written off long before then due to the Obama repayment plans. “We are running a big experiment here: No generation before has carried student debt burdens anything like what today’s students are carrying,” former Obama higher-education adviser James Kvaal told Bloomberg. “There will be substantial amounts of student debt that will never be repaid.” Now he tells us, though he should have done so in 2010.

The student loan program isn’t a subsidy for students. It’s a subsidy for a vital Democrat-supporting industry. Understand that and a lot of other things make sense.

If only there had been some sort of warning.

WHEN YOU’VE LOST THE WEEK: The New York Times surrenders to the left on race. “There’s no denying that the much-lauded ‘1619 Project’ at The New York Times is a remarkable achievement. Whether it’s an achievement that the paper and its staff should be proud of is another matter.”

THIS IS BY DESIGN: Governors Are Losing the Space to Govern. “As the bulk of state spending shifts toward mandatory programs, experimentation is grinding to a halt in the laboratories of democracy.”

JAMES LILEKS ON THE PROS AND CONS OF ‘80S NOSTALGIA:

The problem with nostalgia is the way you burnish and polish the past, until you’ve a curio that bears little resemblance to your actual experience. The question isn’t whether things were somehow Better when there were post-modern geometric patterns at Taco Bell; the question is why in the NAME OF GOD you would even begin think things were better. Because they weren’t, and I know it. Some things were, but there was an underlying dread of an existential sort that today’s climate-emergency hyperbole can’t touch.

Let me put it this way: we were, at any time, a few hours away from a series of mistakes or overreactions which would result in the destruction of our civilization.

If that didn’t happen, we would all get SEX CANCER.

On the other hand, glass blocks made a comeback in architecture, and that was cool.

For everyone who lived through the 1970s, with one disaster after another (the Penn Central bankruptcy, Watergate, the oil crisis, the disastrous last days of the Vietnam War, leisure suits, the Iranian hostage crisis, sky-high unemployment, inflation and interest rates, nuclear winter, Super Train, and Hello Larry, etc., etc.) that mid-1980s period of Miami Vice, MTV and the last vestiges of modern architecture and cool European design really did seem like “Morning in America,” and helped George H.W. Bush get elected in the hopes the good times would continue. (Until the DNC-MSM convinced voters that they wouldn’t.) Read the whole thing.

NIGHT RICOCHETS, CAPE COD: Soldiers from the 1058th Transportation Company, Massachusetts National Guard, conduct a night base defense live-fire exercise under the illumination of a green flare. Photo taken August 1st, 2019.

HONG KONG CRISIS CONTINUES: Demonstrators confront Beijing’s disinformation campaign –including fake tweets. Remember, all the demonstrators ask is that Beijing honor the Sino-British Declaration of 1984 which guaranteed a distinct system of rule until 2047.

BREAKING NEWS: Check out Michael Yon’s website for his video updates. He posted his latest video today, a report on the civil unrest at Yuen Long train station.

RELATED: A recent StrategyPage.com podcast which analyzes the Hong Kong demonstrations and provides background on the crisis.

SNAPSHOT FROM 2008: The aircraft carrier USS Kitty Hawk anchors in Victoria Harbor, preparing for a port call in Hong Kong. Good photo — it caught the city in in the background.