Warren wants better rates for her kids student loan

Oh christ, can politicians please stop trying to rig the credit markets. We already have way to many people going to university to study stuff that no one will employ them for. Last time it was everyone should own their own home, now it is everyone should get a cheap loan for university, same results, more bombs dropped on our futures, more of our wealth pissed away by leaders that think of themselves as more than human with the ability to shape reality like they are on the beach building a sandcastle.

here is the Big Cheif Populist Warren making impossible promises

Don't know if you have heard but there is a bubble blowing. Student loans have been going through a massive boom

The Growth of student loans is happening at a time when household debt is being paid down. The interest rates should rise to get this under control and to shrug off sub-prime education(women studies/sociology/art history...). As more private investors withdraw from this area that is precisely what happens. For good reasons:

So those with a degree are doing relatively ok. Only 5% unemployment you might be thinking. Well think again, There will be a lot of underemployment, that is people with a bachelors degree doing something that someone with less education can do. So they might not be unemployed but they will have a degree in rocket science whilst serving fries at burger king. 

The investors see that the there is rising loans and a lowering of graduates job prospects. Noticing this the more risk averse investors withdraw from the market. Big Chief Warren grabs their hand as they try and remove the punchbowl, through gritted teeth she demands to know how they pay for their loans. It is lower than the kids. So the government has used the popular boogeyman of the bad bankers to help rig another market, rigging credit was in large part what caused the bankers to earn such a reputation. 

Well Elizabeth, despite coming to Washington from Harvard, or maybe because she came from Harvard, is more of a should person than an Is. More normative than positive. More utopian than utilitarian. More everyone can eat candy everyday and not worry about anything than be careful. 

So as private investors flee from the market as everyone can now max out the card with the American taxpayer as their guarantor the Warren confederacy could develop in a few ways. It could essentially force the private debt into the public sector over time as the student loan sector goes from being subsidized to nationalized. The interest rates will be so low that even students that don't need them will take them out, permanent income theory and all, expanding government risk assets.As Private investors flee the market and the amount of sob stories based on students who maxed out their loan on parties and now can't get another grows we might see Elizabeth Warren once more enter the fray. Feigning sorry and sympathy we will have an increase on the limit. 

The above scenario is very plausible, funding for higher education is very marketable. Supporting poor but hard working college kids improve their lives, who can be against that? well that is what scholarships are for. Public funding of higher education is on the contrary, extremely regressive, Instead of redistributing wealth to those that need from those that don't it does the opposite. Most people that go to college are from wealthy backgrounds and if they aren't then they will be when they get their degree, typically. Yet the money used to pay for that education was mostly paid by people that didn't and won't go to college. Watch this, recognize the problems?

Government needs to leave higher education and allow it to evolve and move to a more supply and demand structure instead of people molded by the whims of people that have never had a real job in their life.

Denise Milani

You needed that to brace you for this; 2016 democratic nomination, Elizabeth Warren, you know it's going to happen.