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Thursday, March 08, 2012

For Profit Education, Pigs at the Trough

One of the most sickening kleptocratic rackets to come down the pike are the for-profit “educators.” It’s a scheme that is almost totally enabled by Government funding via Title IV loans. The loans fit the modern American model of getting people heavily in debt, who then have little ability to pay the loan [7] back. This has been described as “Sub prime Goes to College”.

This scheme has been well documented by hedge fund investor and short seller Steve Eisman. His presentation can be gleaned here [8]. Although it is superficially unfortunate that the counterpoint gauntlet has to be taken up by hedge fund managers like Eisman and Chanos, that is the reality of American discourse today. The same thing happened when short seller Chanos took on Enron. Except for a few lone wolves like Ralph Nadar, if someone isn’t talking his money book, then the unrepresented public interest has no voice. Unfortunately, highly intelligent short sellers that see the issue as it is, can and will cover their positions and thereby abandon the public interest. This has enabled the lobbyists representing these rackets to play the left against the right on the issue and ultimately get their way.


1 comment:

Anonymous said...

The city of Salisbury is paying some employees to take some of these classes at the for profit colleges. There transcripts or degrees won't even transfer to a real accredited college. It's a scam and a waste of tax dollars.

Anyone can take the online exams for the person so there is no way to prove the registered "student" actually took the class or did the work.