1. Daily Student-Loan Idiocy

    Man, I could practically write a standalone blog just on the topic of student loans, couldn’t I? I mean, the fodder is everywhere.

    Bloomberg: Student Borrowers Lack Understanding of Loan Terms

    This little snippet is pretty darn tough to ignore:

    Marjorie Gelin Goodwin, 37, one of the respondents, said she owes about $107,000 in federal loans and about $15,000 in private loans for college and graduate school. She is in forbearance on her federal loans, meaning she isn’t making payments. She didn’t understand that her private loans would have a variable rate that could fluctuate so greatly, she said in an interview.

    “I was surprised by how much my student-loan payments would take away from my income,” said Goodwin, who works at a nonprofit organization in San Francisco. “I’ll be retired and still paying my student loans at the rate I’m going.”

    You just really have to read that article. As that great philosopher, Homer Simpson, might say:

    “The stupid, it burns!”




     

     

  2. State Taxes Compared

    Ever wanted to see how your state’s taxes stack up against those of your neighbors? Well, here comes Intuit with a nifty visual tool:

    Turbotax.com: Comparative Look at State Taxes

    It’s an interactive presentation, and I’m particularly fond of the page’s ability to rank states based on sales taxes, gas taxes, income taxes, and pretty much whatever else a financial dork like me could think up. Oh yeah — median income’s in there, too. Pretty timely that I discovered this page just now, as here in a few weeks I’ll be rolling out a post on my household’s effective tax rate for 2011.

    NOTE: Special thanks to Chris, a student in Ms. Cramer’s social-studies class in Goodyear, Arizona, for tracking this down … and to Ms. Cramer for sending me the URL!




     

     

  3. Will I Stay With ING Capital Direct One?

    I’ve not made mention of Capital One’s purchase of ING Direct USA yet in this blog, mostly because I figured every other money blogger out there had probably handled my bitching for me.

    My suspicions were largely affirmed when I read this dispatch from Ad Age:

    AdAge: Can CapOne Persuade ING Customers to Stay?

    I disliked — nay, despised — the idea of my beloved ING Direct accounts falling under the stead of Capital One. Apparently, I wasn’t the only one:

    Reactions to the $9.2 billion acquisition, which closed in mid-February, on social-media sites like Twitter from ING Direct customers were mostly negative, with many announcing they had already left ING Direct or were looking for alternatives.

    What do I have against Capital One? Nothing tangible, really. They’ve not shafted me in the past on credit-card rates or anything. But, to be fair, it isn’t like I’ve done a TARP-load of business with them, either. Ahem.

    Where Do We Go From Here?

    I don’t know why, really, but even though my Electric Orange checking account screen still says ING Direct, just logging-in now feels … I dunno … dirty.

    ING Direct’s Orange Savings account was my first banking love, as it was for so many online savers. The idea of online-only savings and checking accounts never occurred to me until another blogger introduced me to ING Direct, and what I saw, I liked, right off the bat. ING Direct was different. They didn’t throw credit-card offers in my face every twelve minutes; they actually paid above-market rates on savings; they didn’t barrage me with ads for Christmas loans and nothing-down mortgages. (I suppose it should’ve been obvious, even then, that they were short-termers.)

    All those positives will, I suspect, disappear in time, now that ownership has been, uh, reconfigured. Cap One will no doubt do everything it can to monetize those ING accounts. This hasn’t happened yet, of course, but just thinking about it saddens me. I really, really liked ING Direct.

    When ING Direct came along, I actually thought maybe savers (read: tightwads) and banks could get along together okay — maybe even have something sort of “cool” going on, with any luck — but, as so often happens, reality has now set in. Savers don’t make money for banks; borrowers do. And so Capital One will plunge ahead with turning what’s left of ING’s savers into Capital One’s borrowers. Or, failing that, at least turn them into fee-payers.

    We all know it’s coming.




     

     

  4. Lottery Winner Keeps Suckling at Public Teet

    I’d say it’s a shocking story, but sadly, it isn’t. Not to me, anyhow. Rather, it’s just a very stark picture of what we’ve become:

    ClickOnDetroit: $1m Lottery Winner Still Collecting Welfare

    I can think of plenty of descriptive terms for this woman, but as I try to run a mostly-family-friendly blog, I can’t really print them here.

    Local 4 tracked Clayton down to her Lincoln Park home where cameras spotted her and a U-Haul truck, getting ready to move into a new house—that she paid for in cash—now that she has struck it rich. She also bought a new car.

    These purchases are nothing out of the ordinary for someone who just won the lottery, however hidden cameras followed Clayton grocery shopping, where she admitted she uses a Bridge card to pay for her items. She said she gets $200 each month, from taxpayers, to foot her food bill.

    When confronted, Clayton said she didn’t think she was doing anything wrong.

    I hope the state of Michigan feels good knowing that, beyond a shadow of a doubt, their tax dollars were subsidizing this young woman’s lottery habit. (“The more, the better,” right, Michigan politicians?)

    And that Ms. Clayton has no problem whatsoever feeding at the public trough as long as it’s allowed … regardless of her own circumstances. Maybe she was a TBTF banker, or automaker CEO, in her previous life?

    UPDATE 03/08: But wait! It appears that Ms. Clayton just got her Bridge card yanked once news of all this got out …



     

     

  5. First Computer Build: RAM Issues

    Well, I’ve encountered my first hardware failure with my aforementioned desktop computer build.

    Last weekend the PC began experiencing random BSOD (Blue Screen of Death) errors in Windows 7 — sometimes during ‘net surfing, sometimes during gaming, and sometimes watching YouTube vids.

    Suspecting a possible software issue because I’d recently installed a couple of things, I set about completing a Win7 restore operation. No go — restores would not complete.

    Next check: hard-drive testing. Windows’ CHKDSK took a while, but completed normally.

    And then: RAM testing. Rut ro … Windows’ memory testing application quickly reported back that the RAM had errors.

    Turning to the ‘net for a bit of guidance, I performed a more thorough RAM test with Memtest86. With both Corsair RAM sticks installed, Memtest returned thousands and thousands of errors.

    I removed one stick and retested — no problems.

    Swapped that stick out for the other, and retested. Result: quadzillions of errors.

    So there you go: One of my two Corsair 4g RAM sticks has crapped out ofter just over a month of use. I’ll be replacing the pair of RAM cards with a pair of 4gb sticks from Kingston. (I’ve had good luck with Crucial in the past, but Kingston can be had with free 2-day shipping thru Amazon Prime … and I do loves me some Amazon Prime.)




     

     

  6. House Prices Suffer From Student-Loan Debt (But Colleges Seem Happy)

    For today’s “LOL” moment, I proudly present to you:

    Businessweek: Student Debt Is Stifling House Prices

    It’s pretty darn comedic when you think about it: A pharmacist earning $125k/year, and carrying $100k in student loans, is miffed that she can’t — for some unfathomable reason — go out and buy a home. Like, yesterday.

    Roshell Schenck has a Ph.D. in pharmacy and earns $125,000 a year. Yet, because she has more than $110,000 in student loan debt, counselors have told her she can’t qualify for a mortgage. “I’d love to buy and can afford to buy,” says the 28-year-old graduate of Lake Erie College of Osteopathic Medicine in Erie, Pa. With lenders scrutinizing college loans more closely than in previous years, it’s almost impossible for borrowers such as Schenck to get approved for mortgages. “My debt is crushing my chances of purchasing a home.”

    Roshell, say hello to my esteemed colleague, the Law of Unintended Consequences. Kinda crazy, isn’t it, how these days, the debt you’re already carrying seems to matter again? And, darn the bad luck, it’s mattering just when you’d really like to borrow even more! Ain’t that a kick in the pants!

    It’s not that I don’t have some sympathy for grads like Ms. Schenck. The situation she finds herself in — making a really nice income in a good field, but unable to qualify for a home loan due to six digits of student-loan debt around her neck — isn’t entirely of her own doing. After all, the government and our university system forced her to take out those loans—

    Okay, never mind. It IS entirely of her own doing.

    Look: She’s fortunate to be making the money she is. I mean, I would love to have an income like that.

    But only if there’s not $100k+ of debt attached to it.

    But She Wants It Now

    By my reckoning, Ms. Schenck makes enough money that paying back those student loans should be no biggie, in the grand scheme of things. A few years of scrimping, saving, and consistent four- and five-digit extra payments toward those loans, and she’ll be in fine shape.

    Admittedly, though, this concept works only if she goes all Dave Ramsey on it, and can manage to not play “Keep up with the Joneses” as regards her spending habits. (Yes, that dreaded disease which ravages so many of the high-earning types, like doctors, lawyers, pharmacists, and so on. Lots of money comes in the door, sure … and even more of it goes out. Wouldn’t want to not “look the part.” Heavens, no.)

    Back to the article:

    Recent college graduates carry an average debt load of more than $25,000, limiting their ability to qualify for mortgages even if they’re able to land a job in a market with an unemployment rate of 9 percent for 25- to 34-year-olds. Dubbing it a “student loan debt bomb,” the National Association of Consumer Bankruptcy Attorneys (NACBA) warned on Feb. 7 about the effects of rising student debt on recent graduates, parents who co-signed their loans, and older Americans who’ve gone back to school for job training.

    Well, the good news is that borrowing of federally-subsidized student-loan dollars shows no signs of abating. So colleges will remain free to increase tuition at will, year after year, with no danger of “decreased financial resources” or anything outlandish like that out there to slow things down.

    “Just as the housing bubble created a mortgage debt overhang that absorbs the income of consumers and renders them unable to engage in consumer spending that sustains the economy, so too are student loans beginning to have the same effect, which will be a drag on the economy for the foreseeable future,” John Rao, vice president of the NACBA, said on a conference call.

    Absolutely preposterous, says I. How great of a country can we be, really, when our citizens’ past borrowing proclivities keep us from borrowing skads more now, right at the time when we most need it? Pffft.

    I don’t know who came up with this silly idea that “Today’s choices create those of tomorrow,” but I don’t like it. And it seems like Ms. Schenck doesn’t, either. Since when should debt limit our choices? I mean, really.

    Someone should just, like, do something.




     

     

  7. How to Make College More Expensive

    For this, they needed a study? Really?

    SmartMoney: Why College Aid Makes College Cost More

    It’s pretty basic: The more money you make available for a limited good or service, the more that good or service will cost.

    This is what happened when “Fog a mirror, get a home loan” policies were all the rage in the early 2000s. It’s also why “Fog a mirror, get a student loan” policies are NOT the elixir for ever-increasing college tuition that everyone makes them out to be. Rather, they make the problem worse.




     

     

  8. My First Computer Build

    It was something I’ve wanted to do for a long, long time … but never really had the guts to attempt.

    Until several weeks ago.

    After perusing Dell’s website for a while, and being not at all impressed with the price/performance ratios I saw, I determined that I was going to build my own computer. For the first time. At age forty.

    It’s now done. The computer works, even. And because of that, the build was actually quite fun. Here’s my wrapup, for those interested. (Hey, it’s related to personal finance, because if nothing else, I saved some money!)

    Our History with PCs

    Lisa and I have owned quite a few PCs over the years, starting with Acers and Compaqs (both were crap) many moons ago. Our latest desktop PC was a Dell, as was the one prior to that.

    We bought the current Dell Dimension desktop back in 2003; it’s been a solid and durable machine over the years, requiring only modest upgrades here and there. (I think I added a 256mb Nvidia video card at one time, plus a second hard drive. And maybe some RAM as well.)

    These days it languishes in our home’s “computer room.” Due to its age, the Dell is little more than a dust-collecting hub of sorts for our printer, wireless router, and our several household laptops … and it’s an occasional gateway to the interwebs for our daughter. (When she’s not able to get on a laptop because Mommy and Daddy are using them, that is.)

    Time for a New Computer: Our Goals

    Lisa and I aren’t diehard “gamerz,” but when we find games we like, we’ll play the crap out of ’em. Such is the case with current offerings like Elder Scrolls V: Skyrim, Civilization V, and the various Sims concoctions. (Not to mention the upcoming Diablo III, assuming it ever actually hits the shelves.)

    In recent years, what games our family has played have been on our PS3 and Wii. This is fine … to a point. The PS3 is nice, but it has always been our opinion that, while game consoles have their merits, the more involved games (i.e., not button-mashers) are best played on PC. Mods and cheats … yay!

    (In our pre-kid years, Lisa and I had great fun staying up ’til 3 or 4am playing the Civilization series, and darker stuff like Nocturne, on our desktop.)

    Obviously, a 2003 Dell Dimension with a Pentium 4 and a 256mb video card isn’t gonna play Skyrim at any sort of acceptable level. Nor will it run Civ V. Nor will any of our laptops. (Well, our laptops will play Civ V okay, but that’s about as far as they’ll go.)

    And given the fact that our Dell is now making all kinds of noise while it’s running (pretty much 24/7), is useless for the sort of gaming we really want to be able to do, and is long past the end of its upgrade cycle, we decided that a new computer was in the cards.

    Now, the choice: Buy prebuilt, or build our own?

    Comparing, Contrasting, Considering

    Remember how I mentioned that I’d always kind of wanted to build my own computer, using components selected by me? Well, that’s absolutely true. But even this time, my first inclination was to shop Dell, since we’d had such good luck with their desktops in the past.

    But the more I perused Dell’s site, the more I understood that I was going to be spending around $1,400 to get a computer that would do what I wanted, gaming-wise. That seemed a bit stout. Add onto that the fact that that computer would come preloaded with lots of Dell crapware that I didn’t want, and you have the foundations for my going the self-built route.

    1) I want a computer that’s built from decent components. I want to know what’s “in the box.” I want to know that the PC maker didn’t give me a nice video card, but cut corners with a cheapo motherboard or power supply.

    2) Improved price/performance. Sure, I could find a Dell PC that games all night. But to get one comparable to what I built myself (for $1,100) would’ve cost me at least $1,400 from Dell. And even then, it would be “dirty.” That’s explained next.

    3) I don’t want a PC that’s preloaded with gigs of crapware. Experience has taught me that OEM bloatware is a royal PITA to remove. Frankly, I’m tired of dealing with it, and I’m damn sure tired of paying for it. Figuring out what can go, and what can’t, is a gargantuan task in itself, and often fraught with compu-peril. (Of course, you can always just reformat the hard drive on Day One, installing a clean MS Windows, Linux, or whatever. That’s what I’ve done with a couple of laptops. But hunting down the correct drivers wasn’t much fun.)

    4) Upgradeability. If you choose the components, you’ll know what they can handle going forward. If you build the system, you’ll know what’s involved as upgrades become necessary (new hardware, drivers, etc.). This, to me, is a big plus.

    5) Nom nom nom: Brain food. Building a computer is fun — when everything works, of course. Plus it’s just a good hands-on learning experience. For me, there’s a certain measure of pride in building something that doesn’t just look nice, but is also productive and useful in some way. Certainly that can apply to “computer building” just as it does to other things I enjoy (woodworking, software, and so on).

    Research … And Choices Made

    So those were my reasons. As I’d never built a PC before, it was a certainty that lots of research was going to have to take place. Hours of message-board reading at sites like Tom’s Hardware was a given, but I also wanted to grab a book of some sort on the topic. For this, I chose Building the Perfect PC, and read it front-to-back a couple of times on my Kindle app.

    I found Building the Perfect PC to be extremely informative, and — perhaps more importantly — quite reassuring for a newbie builder. Among other things, it gave me some idea of “good reputation” PC-component manufacturers. And if nothing else, having such a book in my Kindle archives pretty much certifies my 100% Geekitude.

    For those folks interested in such things, I’ll list out the components I chose, along with a brief bit of reasoning on each:

    CPU: Intel Core i5 2500K ($220 @ Amazon)
    As of the time of this post, the Intel i5 2500K is an overwhelming choice of gaming-PC builders. Its stability when overclocked (maybe something I’d consider later) is unsurpassed. The fact that it’s not Intel’s current Top of the Line CPU means it costs ~$100 less than an i7 … but with no real performance drop-off for the things I’ll be doing.

    Video Card: Sapphire Radeon HD 6970 2gb ($340 @ Amazon)
    Contemporary video cards are rather pricey, and because we wanted one that would last us for a while, the video card was always going to be the single most expensive component of the build. With lots of great reviews, the HD 6970 seemed to be a very strong graphics card. Again, it’s not top-of-the-line, but certainly strong enough to keep us in HD gaming bliss for years to come.

    Motherboard: ASUS P8Z68-V/GEN3 ($185 @ Amazon)
    Calls to a couple of professional PC builders (friends of friends) suggested to me that ASUS was one of the two or three premier mobo manufacturers today. From there, it was just a matter of finding an ASUS mobo with the correct size factor (ATX), processor setup (LGA 1155, matching Intel Core i3 / i5 / i7), and features to do the job I wanted. This one fit the bill nicely.

    RAM: Corsair 8gb (2x4gb) PC3-12800 1600mHz DDR3 ($49 @ Amazon)
    RAM seems pretty darn cheap these days, and 8gb should be quite enough to keep Windows 7 Pro, plus any games, running smoothly for a long time.

    (UPDATE: One of these two sticks of Corsair RAM bit the dust within the space of a few weeks. They’ve been replaced by 8gb of Kingston SDRAM ($40). So far, all is going well.)

    Power Supply: Corsair 550-Watt Modular Power Supply ($98 @ Amazon)
    The Corsair brand of power supplies came highly recommended, over and over again, on the PC-builder forums I read. If I ever wanted to add a second video card, I’d have to go to a larger power supply. But for now, 550 watts should do the trick. (I also read that power supplies are often the first component that mainline PC makers like Dell, HP, and so on will skimp on to keep prices down.)

    Hard Drive: Seagate 7200rpm 500gb SATA Hard Drive ($85 @ Amazon)
    Meh, it’s a hard drive, and you gotta have one. Seagate has been good to me over the years, so I went with them. As of right now, hard-drive prices are quite dear, thanks to flooding in Thailand which decimated all the HD manufacturers’ factories. Prices which would’ve gotten me a 1TB hard drive (or larger) last year are getting me only a 500gb version now. Bah.

    But, when prices come back down, this can always be upgraded pretty easily. And I’m open to adding a solid-state drive later, as well, for just the operating system and related files.

    DVD Drive: Lite-On 24X DVD+/-RW Dual-Layer Drive ($25 @ Amazon)
    Meh, it’s a DVD drive. These things are expendable. You’ll pay more for dinner out at a decent BBQ joint.

    Case: Cooler Master Storm Enforcer Mid Tower ATX Case ($89 @ Amazon)
    Lots of great reviews on Amazon helped this case catch my eye. I wanted a full-sized case, since space isn’t really an issue for us at the moment. Plus, it needed to be compatible with ATX-form motherboards like the ASUS one I chose above. The newbie-friendliness (spacious, good wiring management, durability) of the Enforcer was also a plus.

    Operating System: Windows 7 Professional
    I had a new and unopened copy of Windows 7 Pro from a previous laptop cleanup that never materialized. Already having this OS disc ready to go meant I would save at least $100 on this build. (To save money, one could always go the open-source Linux route, too. But that was never really an option for me.)

    Peripherals
    We already had an unused wireless keyboard/mouse setup in our stash, as well as a set of PC speakers. Had I wished to do so, I could’ve used the LCD monitor attached to our Dell. I went ahead and upgraded both the speakers and the monitor once the new computer was built and functioning, but those items weren’t integral to the build.

    The Final Price Tag

    And those are the components I chose. For the wallet-watchers keeping track, the tally goes like this:

    Pricing

    If a Windows 7 operating system disc had been needed, I’d have added another $100 (at least) to that total.

    Putting It All Together

    There are skads of YouTube videos showing how to build a desktop PC, step by step. And I watched a lot of them.

    All in all, the build went very smoothly. I’d estimate that it took a Very Nervous Me about half of a Saturday to piece everything together, creeping toward that “Okay, time to press the power button!” moment. I did lots of precautionary static-discharging, as well as lots of double- and triple-checking of my cables and connections.

    The rest of my build day was taken up with installing the OS, updating drivers, getting acquainted with BIOS options, and loading some basic software (virus protection, Adobe Reader, Flash, etc.) on the machine. And let me tell you: Heaven is firing up your brand new, self-built PC, and finding a Windows desktop with nothing on it other than Recycle Bin. Glory, glory, hallelujah, and so on.

    The ASUS motherboard fit perfectly in the Cooler Master case; I didn’t have to flex or bend the board a bit for it to line up with the mounting screw-holes. I did have to remove one of the two drive cages in order for the Radeon video card to fit, as it’s pretty darn large. No biggie, though, as I’m not interested in throwing an additional five or six drives (DVD, hard disc, or otherwise) into this machine.

    I am extremely happy with the Cooler Master case. It is sturdy as heck, and looks great. Front USB and audio jacks are at the top of the case, so they’re super-convenient to access. (Contrast this to our current Dell, where the front USB ports are at the bottom, angled down, and covered by a door that obscures them from view, even when open. You can’t see which way to plug in a USB device unless you’re laying on the floor, OR unless you keep the PC on your desk, at eye level. Nice design, huh?)

    Internally, the Cooler Master’s nooks/crannies for running SATA and all the other cables are plentiful. Air flow (via the case’s two fans) seems great. The DVD and hard drives were ridiculously easy to install.

    Summary

    Pretty much as I’d figured, building a computer was fun. This stands to reason, as I am, obviously, a total geek.

    The computer’s been running and gaming for a couple of weeks now. I still get giddy whenever it fires up and I have that spotless, crapware-free Windows desktop shining up at me. (Please — no comments about how Windows itself is crapware. Its drawbacks, certainly, are many.)

    Yes, I had a blast putting together a machine that actually works and does something. Sure, this one’s mostly for gaming and ‘net surfing. But if you’re a guy like me, who remembers so vividly that glorious moment in 1980 when you first placed your fourth-grade hands on a computer (a Radio Shack TRS-80, in my case) and watched, astounded, as its green screen responded, text-adventure-style, to your typed commands … well, the fact that you JUST BUILT ONE OF THOSE THINGS AND IT ACTUALLY FREAKIN’ WORKS is a mighty, mighty achievement indeed.

    How far things have come. How wonderfully, amazingly far.




     

     

  9. So Why Save?

    Talk about fantastic news: My email inbox showered me with a couple of interest-rate notices this past week … the same sort of notices that have been so pervasive for the last several years:

    Dear Affiliate,

    ING DIRECT’s Orange Savings Account and Kids Savings Account rate has changed to 0.80%.

    ING DIRECT’s Business Savings Account rate has changed to 0.50%.

    Electric Orange Checking Account rates have changed…

    While ING’s savings rates have been below 1% for a while now, and consistently dropping to new lows (for them), the update that really smarted came courtesy of my preferred credit union. Their rewards checking account had been paying me 4.38% ever since I’d signed up back in August of 2010. The new rate as of January 1, 2012?

    Try 3.38%.

    While that’s still a pretty nice rate, relatively speaking, that doesn’t mean I have to be happy about the drop in yield. This is “rewards checking,” after all, where I actually have to expend some effort — like using a debit card at least 12 times per month, which I’d otherwise never do — to earn that rate. And even then, it’s only on the first $15,000 of deposited funds.

    It’s not necessarily the pure dollar figures that tick me off, either. Where my dividends in this account had been running in the $50 area each month, I’ll now be getting somewhere in the vicinity of $42. Eight bucks less per month? No big whoop.

    Rather, what gripes me is the fact that rates are being anchored to the floor, and pushed ever lower, because there’s so much STUPID (yeah, that’s a noun) in the system that allowing rates to rise to a market-clearing level would apparently bring about financial chaos. I mean, heaven forbid true risk get priced in anywhere. Financially-spotty paper assets getting repriced to true, “non-easy money” values? Lord, no! Insanity! Why, think of the children!

    (At this point, Watson, if you’ve surmised that I’m not a fan of the Federal Reserve, you’d be correct.)

    So Why Save?

    It’s quite obvious at this point that, while their PR firms say otherwise, the absolute last thing that The Powers That Be want us middle-class folk to do is save our money. (Neat corollary: One of the reasons we inhabit the economic muck of today is that no one has been saving, really saving, for decades. And if any of us were to do something crazy and start saving now on any kind of sizeable scale, well, we’d be in the soup. Since no one has been saving for years, and instead has been taking on “cheap” debt like there’s no tomorrow, we certainly can’t afford to save now. See how it all makes perfect sense?)

    But if you’re me, and you like to be able to sleep at night, you save anyway.

    You save, because somewhere down the line you’re going to need a new truck, and paying interest on top of the already-silly prices on cars just wouldn’t be kosher.

    You save, because while you replaced your central heat/air system just a few years ago, experience tells you that Murphy likes to show up unannounced and make roadkill of pretty much any four- or five-digit home repair item he can find.

    You save, because deep inside, there’s that vindictive inner self who believes that cramming hundred-dollar bills into a bank bag stored in your home safe means that somewhere, a banker or Federal Reserve governor breaks down in tears. (Or, if you prefer, with each crisp Benjamin you take out of the system, a hefty .0000000137 jobs are destroyed. I don’t have any evidence to back that up, of course, but then my inner self isn’t actually a stickler for facts, either.)

    So go ahead, Federal Reserve, and keep massaging those rates down, down, down. Our beloved banks will have choice but to follow suit. And keep huffing and puffing to prop asset prices up, up, up. There won’t be any negative repercussions to any of this; no, of course there won’t. History has shown us, time and again, that there never are. It always works out well.

    For somebody.

    Just never the savers.




     

     

  10. Higher Debt-ucation

    From from the annals of Bloomberg comes this jewel:

    Bloomberg: Trapped by $50k Degree in Low-Paying Job…

    One of the reasons I’ve not spent a single word voicing my thoughts on the current Occupy Wall Street (OWS) saga is that while I agree with them on several counts (yes, Virginia, laws should apply to everyone equally, regardless of political stature or the size of one’s bank account), there are numerous “grievances” put forth by OWS which are simply ridiculous, and merit not a moment of my time nor consideration. One of these issues centers on student loans and higher-ed debt.

    So Here Comes My Opinion

    No, OWS, higher education is not a right, nor should it be. Student loans should not be forgiven on any sort of universal basis. I care not whether you could or couldn’t find a job suitable to make your loan payments, Ms. Occupy Protester, because I was not the one who decreed it necessary for you to attend said institution and take out big loans to do the same.

    Lament that mid-five-figures debt all you want, but the reason you have it is simply this: Government made it possible for anyone able to fog a mirror to sign their name on a few dotted lines and walk away with thousands of debt bucks, easily, for the glorious purpose of “higher” education. Take away that “easy” loan ability, and the demand for college goes down … as does the ability of college administrative boards to bump tuition and fees 8 to 15 percent per year. And down will come prices. Eventually.

    If anyone could step out and borrow $5k per year (or whatever) for your product, just by slapping their siggy on a form or two, then you’d be lifting your prices by double-digit percentages each year, too. The more money you make available for “something,” the more that “something’s” price goes up. (Pretty neat how well it worked for housing, too, huh?)

    Sold a Bill O’ Goods

    That’s exactly what happens to lots of college students, it appears. They’re being sold a bill of goods.

    Because if you, like Laura Sayer in the linked article above, run out and borrow $50k to get a Masters degree at NYU’s Program for Interdisciplinary Studies in Humanities and Social Thought, and then you’re upset to find that that degree doesn’t do jack squat for you in the Real World, well, I don’t know what to say.

    …Sayer was set back $50,000 more after completing the Interdisciplinary Master’s Program in Humanities and Social Thought at New York University. The 27-year-old now makes about $45,000 a year as an administrative assistant for a nonprofit group, a job that didn’t require her advanced degree.

    Hmmm. Seems to me that her advanced degree was much more of a years-long (and quite expensive) whim than any sort of career booster:

    Sayer, the NYU graduate, said while she learned critical-thinking skills, her career prospects won’t allow her to pay off her debt anytime soon. [Emphasis mine]

    “Even if I didn’t know what field it would lead me to, I thought it would be worthwhile for my professional career,” said Sayer, who lives in the Crown Heights neighborhood of Brooklyn with two roommates.

    No, really. The jokes practically write themselves.

    Many of the students who enroll in the master’s of “Social Thought” program directly from college do so with an eye toward a Ph.D., said John Beckman, an NYU spokesman.

    Of course they do. The masters won’t do a damn thing for them. Thus, they want to put off those student-loan payments as long as is humanly possible. Of course, that will probably require taking out more loans, but as we’ve previously established, student-loan lending isn’t exactly “restricted” to only the best credit risks. No credit? No job prospects? Already $40k in debt? No problem. There’s more where that came from.

    “The numbers have shown, and will continue to show, over time that an investment in an advanced degree will yield better career prospects and income,” Beckman said.

    Some salesman, this guy. You have to wonder if the people who wrote the theses below — previous NYU attendees in the “Social Thought” program — really believed that what they were studying had ANY BEARING WHATSOEVER on whether or not they’d achieve gainful employment at anything above poverty-level Mcwages:

    • The Graven Image: Truth, Self, and Identity in Max Frisch’s Novel I’m Not Stiller
    • The Meaning of Documentary: Narrativity, the Cartesian World View, and a Heideggerian Critique
    • H.D.’s Creation of the New: Redeeming the Maternal Body in Pursuit of Feminine Language
    • Why Are Gay Men So Effeminate? An Essay on Aesthetics, Affect, and White Gay Male Subjectivity
    • Speaking in Tongues: Language and Creolite in the Work of Kamau Brathwaite and Junot Diaz

    Readers, please tell me: Do the authors of these things actually want to WORK and create products or services of value to the rest of us, or do they just want their egos stroked and subsidized (preferably at taxpayer expense) on a regular basis?

    Methinks I know the answer.

    And I didn’t need to borrow $50k to achieve my “critical-thinking” skills.