tag:blogger.com,1999:blog-14963913.post1410504118963521760..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: Ponzi Never Dies: SLMKid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-14963913.post-67034137041064587572010-03-18T10:56:36.007-04:002010-03-18T10:56:36.007-04:00anon - that is an important clarification. thanks...anon - that is an important clarification. thanks for bringing it up. I don't have the private loan rates on hand, but i'll trust your claim that they are made at higher than the 8% cost of funds.<br /><br />you'll notice that i didn't dwell on that though. the key part of my post is that SLM cannot pay back its outstanding debt by any means other than issuing new debt. This is also known as a ponzi scheme.Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-32428316792634923412010-03-18T10:51:25.481-04:002010-03-18T10:51:25.481-04:00This article is completely out of context of how S...This article is completely out of context of how SLM works. Federal loans have historically been funded by asset backed securities at rates below what they receive from customers. They currently put all their fed loans back to the Gov. The unsecured debt mostly funds their less regulated private student lending which charges customers much higher rates than 8%. They are comparing apples and oranges here.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-11585439005054491682010-03-18T09:50:23.091-04:002010-03-18T09:50:23.091-04:00KD - you are probably right - socialize it and lea...KD - you are probably right - socialize it and leave every taxpayer on the hook. <br /><br />And we Canadians are left leaning?<br />Funny how our mortgage agency was ALWAYS gov't backed, our education system was ALWAYS highly subsidized - that used to be a source of criticism.<br />US is looking more and more like us every day...<br />Now that you've got a sugar shack, I'd be happy to consider you an honourary (sic) Canuck.JPhttps://www.blogger.com/profile/05990669895595100151noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-59393417454566460142010-03-18T09:10:08.518-04:002010-03-18T09:10:08.518-04:00i'm not at all convinced that student loan rat...i'm not at all convinced that student loan rates will jump, 1090rule - the government will eventually probably take over this market so that low loan rates can be maintained (kinda like FNM FRE!)Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-44210182980919774412010-03-18T09:06:44.873-04:002010-03-18T09:06:44.873-04:00Hilarious KD - I had the exact same reaction to Ea...Hilarious KD - I had the exact same reaction to Eager's comment.<br /><br />This is sad for those looking to invest in their education. The market will close that gap between 8% funding and 5.6% loans... I'm pretty sure I know which one will move more...JPhttps://www.blogger.com/profile/05990669895595100151noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-46440456823944874182010-03-18T08:54:21.071-04:002010-03-18T08:54:21.071-04:00Shhh--I've got some of this crap maturing in O...Shhh--I've got some of this crap maturing in October--after that you can trash it all you want, lol.But What do I Know?noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-34791226609286618312010-03-18T08:35:18.308-04:002010-03-18T08:35:18.308-04:00Obama doesnt know that he has advisors that dont h...Obama doesnt know that he has advisors that dont have any idea what is going on. We are years into this mess and Bernanke cant admit that the United States has a massive massive leverage problem that will eventually destroy our entire financial system.Jameshttps://www.blogger.com/profile/12183085827525696523noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-38609931323583404852010-03-17T22:23:16.662-04:002010-03-17T22:23:16.662-04:00GYSC - i can't believe that Bernanke comment a...GYSC - i can't believe that Bernanke comment about eliminating reserve requirements... i would swear it was an April Fools prank, but we're still a few weeks away.<br /><br />isn't reducing reserve requirements essentially the same as increasing leverage? that's the solution? REALLY?!?!?!Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-8568849563993863022010-03-17T22:11:12.501-04:002010-03-17T22:11:12.501-04:00Well I guess the next logical step in Ponzi, is MO...Well I guess the next logical step in Ponzi, is MORE Ponzi, or cowbell, I forget:<br />Bernanke:<br />Bank Reserves to be a thing of the past<br />http://tinyurl.com/yfkv5nc<br /><br />Well that should add a little fuel, yes?<br /><br />OT,<br />It rained here (north of Boston) 9 inches and I had to take some alternate routes to get to work in Cambridge due to road closings. Unreal the weather lately, and all this week 60 degrees and sunny?EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-1172838771030175722010-03-17T20:43:39.928-04:002010-03-17T20:43:39.928-04:00Seems like the right play is to short Loomis Sayle...Seems like the right play is to short Loomis Sayles!Yangabangahttps://www.blogger.com/profile/01602946300256374843noreply@blogger.com