http://drummondpike.tides.org/index.php/2009/09/21/beware/ Drummond Pike's Blog Thu, 17 May 2012 04:04:54 +0000 http://wordpress.org/?v=2.3.3 http://drummondpike.tides.org/index.php/2009/09/21/beware/#comment-2151 David Persich Tue, 22 Sep 2009 22:34:26 +0000 http://drummondpike.tides.org/index.php/2009/09/21/beware/#comment-2151 Apples and oranges, Mr. Pike. The reason the banks left the student lending program or could not sell the paqckage of notes into the private market is that is was non profitable. Meaning they were losing money due to the many defaults which were occuring. Student loans are made based on the person not collateral. So if the person decides not to pay back the loan there is nothing the bank can do to get that money back (sure they can send to collections but get blood out of a turnip is more likely). Sure the government can get into these loans but they still will not be profitable and I will argue less so since they will be making loans to anyone without regard to character or willingness to pay back the loan regardless of outcome (getting a college eduction, votech or dropping out of college with no intention of paying). Secondly, the government has no mandate to be in the business of health care. They do not need to make a profit and therefore can charge lower premiums than companies who need to make profits in order to stay in business. This will drive the companies from business (simple economics as this is what a monopoly does to disgard their competitors). Of course those who have power and wealth (I should add political connections) do not have to worry. They will receive top notch health care regardless of what happens to the health care industry. I would be haapy to elaborate further on what will occur if the government gets their hands on our healthcare such a decrease in the number of doctors, poor quality of health services and long waiting lines. As for the government being involved with police and fire, these are seperate areas which are for the protection of the entire community and therefore paid for by the entire community through taxes (well most of the community who pay taxes). I would ask you what governmental entity provides a service which is well managers (the military being exempt). Apples and oranges, Mr. Pike. The reason the banks left the student lending program or could not sell the paqckage of notes into the private market is that is was non profitable. Meaning they were losing money due to the many defaults which were occuring. Student loans are made based on the person not collateral. So if the person decides not to pay back the loan there is nothing the bank can do to get that money back (sure they can send to collections but get blood out of a turnip is more likely). Sure the government can get into these loans but they still will not be profitable and I will argue less so since they will be making loans to anyone without regard to character or willingness to pay back the loan regardless of outcome (getting a college eduction, votech or dropping out of college with no intention of paying). Secondly, the government has no mandate to be in the business of health care. They do not need to make a profit and therefore can charge lower premiums than companies who need to make profits in order to stay in business. This will drive the companies from business (simple economics as this is what a monopoly does to disgard their competitors). Of course those who have power and wealth (I should add political connections) do not have to worry. They will receive top notch health care regardless of what happens to the health care industry. I would be haapy to elaborate further on what will occur if the government gets their hands on our healthcare such a decrease in the number of doctors, poor quality of health services and long waiting lines. As for the government being involved with police and fire, these are seperate areas which are for the protection of the entire community and therefore paid for by the entire community through taxes (well most of the community who pay taxes). I would ask you what governmental entity provides a service which is well managers (the military being exempt).

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