BloggeRhythms 6/1/2013

Today’s one more where I’m sitting here scratching my head in confusion compounded by anger regarding governmental recklessness.

 

In this case, I don’t know who’s directly responsible, the incumbent, his handlers, public relations touts or any of a number of influences causing political pandering to far outweigh intelligent, rational thought.

 

Yesterday, surrounded by a horde of students, or actors playing that role, the incumbent bombbasted about maintaining substandard rates on student loans whereas without new action, rates will double to 6.8% on July 1. When facing the same issue last year, the lower rate was sustained for twelve additional months.

 

My own displeasure regarding this issue arises on several levels. Because from either a practical, theoretical or precedental level I believe the entire concept of easement is wrong.

 

Having spent the majority of my career in commercial financing, if nothing else was learned, I fully grasp the importance of contracts and agreements whereas they establish the rules and regulations upon which all parties consent to perform. And, whether those terms and conditions lead to ultimate satisfaction of the participants predicates on future events taking place after agreements are entered, which virtually no one can predict at the time of contractual closings.

 

Therefore, if a powerful, unenjoined party, such as the POTUS steps in at a later date to magnanimously announce that contractual signatory’s such as students no longer have to abide by their promises to pay via his interference on their behalf, he’s demonstrating to them that its not really important to keep your word or honor obligations you undertake.

 

At the same time, he’s also manipulating the national debt because the governmental advances and repayment guarantees are certainly accounted for somewhere in the nation’s budget, because they’d have to be. Consequently, although it may be almost impossible to determine within the morass of  budgetary fine print, simple logic says that somewhere or other, taxpayers are on the hook for the shortfall in repayment that now won’t be received from expected contractual fulfillment.

 

Then, beyond the disregard of basic contractual integrity, there’s another, subtler, abuse of power. Because in the same way that the incumbent’s Project Acorn undermined the household mortgage industry by forcing lending to unqualified, substandard borrowers at substandard rates, our entire economy ultimately destabilized and we’ve not fully recovered yet.

 

So, while student loan rate forgiveness may not be a subject causing many to worry or even give much thought, its best to remember that it’s the little things that count. And in this particular administration, there are “little things” going on all the time. Eric Holder alone is involved in three or four or five.

Which is why if you don’t pay attention to each and all issues, sooner or later you’ll realize there’s bad news everywhere and wonder how that came about although the clues and evidence are everywhere, if you simply take the time and bother to look.

 

That's it for today folks.

 

Adios