Man, some things are much easier to explain using a graphic rather than words. Here are the words, but do not miss out on this graphic.
Sallie Mae pays its executives hundreds-of-millions each year. For doing what? For making loans that you, the taxpayer, have co-signed. You have assumed 100% of the risk. All Sallie Mae executives do is serve as a middle man. But rather than be paid government salaries for their work, their CEO makes millions.
Here is how the scam works. Sallie Mae makes a college kid a loan. If the kid defaults on his loan, then you-the-taxpayer reimburse Sallie Mae for its losses. If the kid pays the loan back, Sallie Mae keeps the interest. All of it.
Taxpayers assume 100% of the risk, and Sallie Mae keeps 100% of the profits. Sallie Mae does nothing to earn its money.
When Obama talks about a need for everyone to attend college, put that in context. You are the ones co-signing those student loans. You are the ones enriching Wall Street for doing nothing. Feeling like a useful idiot yet? Don't be mad at me for insulting you. Be mad at the people who have exploited and manipulated you. This blog is non-profit, but there is much profit in college-for-all.
When people talk about "free markets" and "Wall Street" in the same sentence, ram a boot on their necks. I'm serious. I am starting to become a total dick when talking to people about Wall Street.
If you tell me that there is a free market in finance, and thus regulation is evil, then you are a fraud or an ignoramus. In no case will I tolerate you, or remain civil. Being nice is what led to the bailouts. Rather than expose Todd Zywicki as a liar and fraud, we're supposed to be nice. We're supposed to be civil.
How far has being nice gotten us? It's time to be straight-up assholes to people who spread lies and misinformation.
Therefore, anyone who uses "free market" and "Wall Street" in the same sentence must be sneered at. Drive them to the underground where they belong.
If you think I'm overreacting, check out this graphic. (Click on it to enlarge.)
