Education

NJCher

(35,605 posts) Sat Jun 20, 2015, 11:09 AM Jun 2015

WSJ Article on Obama's Moves to Make Student Loan Default Easier

Last edited Sat Jun 20, 2015, 01:19 PM - Edit history (2)

I thought this article interesting, but its title tells little about the content. so I made up my own subject heading. It is not a new article, and was written back in March of this year. If anyone has knowledge of what's happened since Obama brought up the possibilities, please post.

Welcome to Ginger and Pickles University
Obama wants to make student-loan defaults easier. Maybe he should consult with Beatrix Potter first.

Rising student-loan default rates are back in the news. As President Obama signed a “Student Aid Bill of Rights” initiative Tuesday, he said his administration will study the idea of extending bankruptcy options for all student-loan borrowers.

How did we get here, and what can we expect to come? Let’s ask Beatrix Potter. If you seek a lesson in credit bubbles, you need look no further than “The Tale of Ginger and Pickles,” published in 1909.

Ginger is a tomcat and Pickles is a terrier. Together they run a small village shop, generous enough to operate on a peculiar business model: They are willing to sell things on credit—unlimited credit. Potter explains this to her youthful reader thus: “when a customer buys a bar of soap, instead of the customer pulling out a purse and paying for it—she says she will pay another time. And Pickles makes a low bow and says, ‘With pleasure, madam,’ and it is written down in a book.”

Ginger and Pickles have lots of customers. They have many more customers than the other village shop, run by Tabitha Twitchit (who always expected actual payment). And so, written down in their account book, Ginger and Pickles have a lot of money owed to them. But no actual money is coming in.

http://www.wsj.com/articles/joshua-p-hochschild-welcome-to-ginger-and-pickles-university-1426113676

Cher

8 replies

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Highlight:

WSJ Article on Obama's Moves to Make Student Loan Default Easier (Original Post) NJCher Jun 2015 OP

The true deadbeats are the 1%.... Human101948 Jun 2015 #1

Is there a link to this WSJ article please? nt 99th_Monkey Jun 2015 #2

I edited my post NJCher Jun 2015 #3

you have to subscribe rickford66 Jun 2015 #4

that's how it came up for you? NJCher Jun 2015 #5

That's how it came up. Subscribe or sign in. rickford66 Jun 2015 #6

Here it is, in full NJCher Jun 2015 #7

Got it. Thanks rickford66 Jun 2015 #8

Human101948

(3,457 posts)

1. The true deadbeats are the 1%....

Reply to NJCher (Original post)

Sat Jun 20, 2015, 12:08 PM

Jun 2015

Their peculiar business model is take all the profits of the labors of the 99% and hoard it, starving the economy and creating huge deficits. When confronted with the grim failure of this model, they double down and try to take more from the 99%.