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Forum Post: A few explanations please...

Posted 13 years ago on Oct. 12, 2011, 11:52 p.m. EST by cmcgrath (2)
This content is user submitted and not an official statement

Let me start by saying that I completely support this movement. However, there are a few things I'm having trouble wrapping my brain around:

What is to blame for the insanely high cost of a college education (why so many young people are coming out of school are in debt)? If it's not "the banks" fault, why is this problem getting lumped together with Wall Street profiteering? Or is this issue somehow connected and I just don't get it?
I'm not a conservative by any stretch of the imagination, but why is personal accountability not being discussed in respect to the housing foreclosure mess? I knew better than to try and buy a $500,000 house even I could have easily qualified for one. Still, many, many people didn't seem to know better. We have an unhealthy addiction to credit in this country; people want what they want (now!) and are more than happy to go into debt over it; even if it means they can never repay. The banks certainly took advantage of that (and should be held accountable) but why is there no discussion of the public's role in all this?
The banks got bailed out, yes, but they repaid the money back. Why do people make it sound like they took that money and ran? Sure, they were "rewarded" for making horrible gambles with other people's lives and money...but wouldn't we surely have a much worse recession/depression if they had just been left to go down in flames (taking us all with them)? Again, I'm not saying that they shouldn't be held accountable for what they did. But why make it seem like they've never returned the taxpayers' money and we're all suffering as a result?

I'm writing here because I clearly don't know enough about the issues and want to have a better understanding of what we're up against. If you feel you can intelligently reply, please stick to facts (I could do without rants and lectures) and/or point me to sources I could read for more information. Thanks!

2 Comments

[-] 1 points by ribis (240) 13 years ago

My $0.02:

I'll say that at least three factors play into rising tuition costs: increased administrative costs, increased enrollment, and decreased educational subsidies. First, if there was a strong movement in favor of removing paper-pushers and useless bureaucracy from our university system, I'd support that as well as OWS. I spent enough time in my college to know that there's a lot of dead weight in there. However, that's not something OWS seems structured to address. Second, I see increased enrollment as a net positive -- this is something we ought to encourage. Maybe we should encourage a shift toward practical applications, maybe not, maybe we're making too many English majors, ok, I can at least argue on that point. Nevertheless, the general trend towards more education is a Good Thing. The third is significantly due to various austerity measures and failures to fund over the last few decades, and I find OWS's goals compatible with rectifying that problem. Ending the austerity and deregulation push will do a bit to alleviate this part of the problem.
"I could have easily qualified for one." There's the problem. If someone is not solid for a half-mil loan, banks have no business selling it to them. It's like giving a 12-year old a fifth of scotch and the keys to your car. Ratings and the interview process exist to ensure that the bank has a good chance of collecting on a loan; failure to vet applicants generates false confidence in the market, and we all see the results. Most often, the banks didn't even keep the loans; instead, they sold them to trading companies that were all gambling on not being left holding the bag when it all came crashing down. Ideally, yes, people shouldn't borrow beyond their means, and I'm not in favor of an all-out amnesty, but predatory lending of this sort is unjustifiable.
People are angry because they feel that the banks' managers, who were demonstrably responsible for a significant portion of the current crisis, were not held meaningfully accountable. Their repayment of a sweetheart government loan garners them no special kudos, any more than I deserve glowing praise for paying my rent. If I blew all my money on hookers and well-aged scotch, I wouldn't get a nice loan to make it better; I'd be out on the street. They essentially blew it with nothing to show for it -- and got gentle taps on the wrist.

Again, just my thoughts -- not necessarily representative of OWS, but that's what comes to mind.

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[-] 1 points by coolnyc (216) from Stone Ridge, NY 13 years ago

It's not the banks fault. It doesn't belong here.
You're right. Individuals have culpability also.
Everybody disagrees here. My take is that it was necessary to avoid a complete meltdown. Didn't like it. Makes me nauseous. But I think it had to be done. IMO - facts will need to come from someone smarter than me.

But the debate should be, how do we keep it from ever happening again.