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Student loans are a way the US government redistributes income from the 99 to the 1 percent. Notice also that virtually all K-12 educational reform is geared toward turning the most IQ challenged children into university students. The complete process of student loans and educational reform are interrelated scams to redistribute income from the 99 to the 1 percent. The more students take out loans, and the more kids and parents feel pushed toward university educations, the richer Wall Street and its investors get.

Wall Street investment corporations purchase student loans, and then turn around and issue bonds based on the value of the government guaranteed student loans, meaning there is no risk for the rich investors who opt to purchase these bonds. These student loan transaction generate billions of dollars of income for Wall Street.

That’s one reason why the US government allowed student loan interest rates to double from 3.4 to 6.8 nearly two years ago. The rich investors of Wall Street benefited from this at the expense of the 99 percent.

There is another reason why the US government keeps this massive income redistribution scam going. Wall Street banks have invested billions of dollars into private, for profit, universities.

* ITT is 100 percent owned by Wall Street investment companies.
* The Apollo Group owns the University of Phoenix, among other private universities. JP Morgan, Citigroup, Barclays, Wells Fargo and Blackrock, among others, own 98 percent of the Apollo Group.
* Devry University is 100 percent owned by Bank of America, Barclays, BlackRock, JP Morgan, and Morgan Stanley, among other Wall Street Investment firms.

You can go on and on and the story is the same with respect to for-profit universities. Many of them are owned by Wall Street.

These universities target low income students, and charge several times more tuition than community colleges. Student loans amount to $32 billion in revenue a year for Wall Street owned private universities. That equals 25 percent of all student aid in the USA. The revenue generated by student loans provides up to 90 percent of annual income for Wall Street investment schools.

* In 2012, 88 percent of graduates left school with debt equal to almost $40,000 per student, which goes straight into the pockets of Wall Street investors.

* With interest, late fees, penalties, and collection fees assessed against students, the total cost of an education at these private schools is “can end up being more than double the cost of an education at Harvard University.

* 17 percent of revenue is spent on teaching, 19 percent goes to profits, and 23 percent does to marketing their bogus products.

* The average annual pay of a CEO at any of these corporate schools equals $7.3 million.

* The US Department of Education reports that 72 percent of private school graduates wind up in jobs that “average less pay than high school dropouts.” This may explain why corporate school college graduates represent only 13 percent of all college graduates, but they account for 47 percent of all loan defaults.

And these are only some of the reasons why student loans represent a nice income redistribution scam for the 1 percent at the expense of the 99 percent. Check out the link below for a story and interview about how one person decided, among many, decided it was in his best interest to default on his student loans.

why-this-man-defaulted-on-his-student-loans-and-suggests-others-do-the-same–Yahoo! News

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Three of the country’s largest financial companies gave their CEOs huge raises for 2013, complete with large stock packages. Despite the outrage those raises have prompted, the three men more than earned those pay bumps by sidestepping major legal and financial consequences for their contributions to the financial crisis. This saved their companies ten of billions of dollars in fines, as well some jail time for at least some executives.

Check out the story by clicking on the link below.

Wall Street Executives Get Massive Pay Raises For Avoiding Legal Repercussions For Their Misdeeds That Cost the Economy (Main Street) Six to Twenty Trillion Dollars–Thinkprogress.org

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People below demonstrate against US multinational investment banking firm Goldman Sachs buying into the National Danish electricity supplier DONG in front of the Danish Parliament on January 29, 2014. (AFP Photo / Jeppe Bjoern Vejloe)

“Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and, most infamously thanks to a recent high-profile scandal, aluminum. And they’re doing it not just here but abroad as well: In Denmark, thousands took to the streets in protest in recent weeks, vampire-squid banners in hand, when news came out that Goldman Sachs was about to buy a 19 percent stake in Dong Energy, a national electric provider. The furor inspired mass resignations of ministers from the government’s ruling coalition, as the Danish public wondered how an American investment bank could possibly hold so much influence over the state energy grid.”

Here’s how corrupt the process is; Goldman Sachs may not have been the highest bidder for the electricity company. How can that be?

And here’s something to ponder; then President Bill Clinton signed this legislation to redistribute income from the 99 to the 1 percent. If Hilliary Clinton becomes president, expect her to do more of the same. Of course, President Mitt Romney would be at least as bad.

Click the link below to see how investment banks were enabled to become owners and manipulators of industry.

The Vampire Squid Strikes Again–Rolling Stone Magazine

Danish Prime Minister Helle Thorning-Schmidt addresses the media after the Socialist People’s Party quit the government over the controversial sale of a stake in state-controlled energy group DONG to Goldman Sachs. (AFP Photo / Keld Navntoft)

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From the website of Senator Bernie Sanders of Vermont:

April 9, 2013

Sen. Bernie Sanders on Tuesday planned to introduce legislation to break up banks that have grown so big that the Justice Department fears the financial system would be at risk if criminal charges were filed. Rep. Brad Sherman proposed a companion bill in the House.

The 10 largest banks in the United States are bigger now than before a taxpayer bailout following the 2008 financial crisis when the Federal Reserve propped up financial institutions with $16 trillion in near zero-interest loans and Congress approved a $700 billion rescue for banks that some considered “too big to fail.” Attorney General Eric H. Holder Jr. now says the Justice Department may not pursue criminal cases against big banks because filing charges could “have a negative impact on the national economy, perhaps even the world economy.”

“We have a situation now where Wall Street banks are not only too big to fail, they are too big to jail,” Sanders said. “That is unacceptable and that has got to change because America is based on a system of law and justice.”

“Never again should a financial institution be able to demand a federal bailout,” Sherman said. “They claim; ‘if we go down, the economy is going down with us,’ but by breaking up these institutions long before they face a crisis, we ensure a healthy financial system where medium sized institutions can compete in the free market.”

The Sanders and Sherman legislation would give the Treasury Department 90 days to identify commercial banks, investment banks, hedge funds and insurance companies whose “failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial government assistance.”

The list would have to include institutions deemed “systemically important banks” by the Financial Stability Board, the G-20 body that monitors and makes recommendations about the global financial system. The board in a press release last Nov. 4 identified eight U.S. banks required to maintain extra capital buffers: Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo. Treasury would be required to break up those and any other institutions identified by the secretary as too big to fail.

The six largest U.S. financial institutions today have assets of nearly $9.6 trillion, a figure equal to about two-thirds of the nation’s gross domestic product. These six financial institutions issue more than two-thirds of all credit cards, over half of all mortgages, control 95 percent of all derivatives held in financial institutions and hold more than 40 percent of all bank deposits in the United States.

“In my view,” Sanders concluded, “no single financial institution should have holdings so extensive that its failure could send the world economy into crisis. At the very least, no institution, no CEO in America should be above the law. If an institution is too big to fail, it is too big to exist.”

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As of March 4 2013, Wall Street President Barack Hussein Obama was talking to Republicans about cutting Social Security payments to your grandparents in order to preserve Big Oil‘s $52 billion annual federal entitlement program, and also of finding ways of making the affluent richer by pretending to do things he has no intention of doing. He’s also negotiating to reduce Medicare.

As the president knows, the Social Security Trust Fund has a surplus of $2.7 trillion that collects $120 billion a year in interest. Obviously, this program doesn’t contribute to the deficit at all. So why is Wall Street’s current president negotiating to cut what minimal payments the elderly receive from the program that they paid into?

Supposedly, the president is also negotiating raising taxes on the already rich, the top five percent, but like a good Wall Street Republican in disguise, which is the same as saying he’s a corporate Democrat, the president will most likely either cave in to Republican demands for no tax increases on the rich, or perhaps he will negotiate to ensure that enough tax loopholes exist in any agreement, that the rich pay no more in taxes that they do now, or more than likely, they’ll pay less. It’ll be good theater, no doubt.

Obama supports the Bowles-Simpson proposal as a means to reduce the deficit. Erskine Bowles is a member of the Board of Directors of Wall Street investment bank Morgan Stanley. Simpson is a former GOP senator from Wyoming and a big time supporter of Wall Street. That tells you all you need to know.

In other words, the president may be looking to redistribute income from your grandparents on their fixed incomes to the top 1 percent as a way of cutting the federal deficit. By the way, Republicans like this income redistribution scam since they play this game all the time.

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Number one is real simple. I predicted it in my book, The Rigged Game: Corporate America and a People Betrayed, that income inequality is growing in the United States. President Obama, Wall Street Senator Ron Wyden, the Democratic party leadership, Mitt Romney and the Republican party leadership, know this. They all have the same plan regardless of who wins the upcoming presidential election. They plan to make sure income inequality continues to grow by redistributing income and wealth from the 99 to the 1 percent.

Currently, the 1 percent receive about 30 percent of all income in the US, up from about 7-8 percent in 1980. That means the 99 percent have less money to purchase stuff with, which is why the economy is mired in this Great Recession, jobs are scarce, and the economy is tilting on the edge of an economic abyss that will make our current situation look like the good old days.

There is one key difference between the two; Republicans want to redistribute income to the 1 percent faster than the Democrats. Big Deal. The end result is the same; the economic disenfranchisement of the 99 percent. It will soon be banana republic time in the United States. Political disenfranchisement has already occurred.

The rich have created a much larger income gap because they have stolen the money from the 99 percent via US legislation, such as free trade treaties, deregulation and privatization scams. All of these redistribute income from the 99 to the 1 percent.

Liberal Wall Street Senator Ron Wyden, a nasty son-of-a-Wall Street-Bitch, is a driving force behind these scams. Free trade treaties open the door for US businesses to ship (or create) jobs overseas. The difference between the lost higher wage US jobs and the new lower overseas jobs goes into the pockets of the rich via higher corporate profits, surging dividends and rising share prices. The senator of Wall Street knows this but continues to vote for Wall Street and hedge funds over the interests of the 99 percent. Worse yet, the jobs shipped away or created overseas were once the tax base that supported government services, such as schools, roads, bridges, fire fighters and polices.

“The middle class is shrinking. According to Prof. Alan Krueger, Chairman of President Obama’s Council of Economic Advisers, ‘the shift in income inequality over the last three decades is the equivalent of moving $1.1 trillion of income from the 99 percent to the top 1 percent every single year.'” There’s a reason for this. That’s because $1.1 trillion of income has been redistributed every year on average from the 99 to the 1 percent via free trade treaties, deregulation and privatization scams.

The middle class is still shrinking under Obama. He knows this and continues to sign legislation to do exactly this. Last autumn he signed free trade treaties with Panama, South Korea and Colombia. The result, according to numerous estimates, will be a net loss of nearly a million jobs. So the difference between the old higher wages and the new lower wages goes into the pockets of the wealthy. Now Obama has his people negotiating the Trans Pacific Free Trade Agreement (TPP), which the Guardian newspaper of the UK calls “Nafta on steroids.” The TPP will accelerate the decline of the middle class by redistributing more income and political power from the 99 to the 1 percent. Obama knows this, but continues the policy anyway.

So what? Profits are up? Where are the jobs? Obviously, trickle down didn’t work. Worldwide, US corporations are sitting on over $5 trillion. But they can’t invest it because demand is so slack due to the massive redistribution of income from the 99 to the 1 percent.

Wall Street Mitt the Twit Romney claims tax cuts for the rich will stimulate the economy, but 30 years of failed trickle down economics is ultimately the primary reason the current economy sucks big time, like total New Great Depression. The Twit’s trickle down economic policies will only make things worse for the 99 percent. That’s because the 1 percent will have more income with the cuts with which to purchase more legislation from Mitt Romney (if elected), Obama (if re-elected), Ron Wyden, John Boehner, Rand Paul, Earl Blumenauer and lots of others in congress and the senate. So does Obama and Wyden. Too bad for the 99 percent. Apparently, Mitt the Twit thinks the US economy should be used to redistribute income from the 99 to the 1 percent. Make the rich richer at the expense of the rest of us? I don’t think that’s what an economy is for.

Bank profits are enormous because the Federal Reserve continues to help these folks out. Fed Chairman Ben Bernanke last week announced a plan to stimulate the economy. It was a lie. The fed has decided to purchase $40 billion of worthless mortgage backed bonds from wealthy investors and institutions such as investment banks like Goldman Sachs and Morgan Stanley. The Fed will purchase the worthless or nearly worthless bonds on a face value basis. If the investors or banks paid $10 million for the bonds, which are now valueless, the Fed will still pay the stupid bank or investor $10 million for the worthless bonds. The Fed has been very helpful with increasing the profits of banks for several years now using such scams.

CEO pay has risen because the government and the Federal Reserve continue to bail out the rich and help to increase corporate profits by enacting income redistribution legislation, like the South Korea free trade treaty. See the chart above.

There is a reason 1 in 5 US workers earn so little. Wall Street Senator Ron Wyden and others continue to redistribute income from the 99 to the 1 percent via free trade treaties that ship or create jobs overseas. This puts downward pressure on wages in the US, which redistributes income from the 99 to the 1 percent. The same process occurs when too many immigrants come to the US, creating a surplus of labor, which also puts downward pressure on wages. Republicans love this, but so do Wall Street democrats, like Ron Wyden.

Related story

Breakdown of the $26 trillion the Federal Reserve Handed Out to Save Stupid, but Rich, Investors and Banks

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Today we read the following from the various news sources, “In an unprecedented and controversial move, the Federal Reserve today announced the initiation of an open-ended round of Quantitative Easing (QE3) and extended the period for which it will keep rates between 0 and 1/4% to mid-2015….”….The (Federal Reserve) Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. ”

What did the committe really mean? It meant this; The committee agreed today to buy $40 billion in wortheless mortgage-backed bonds from the 1 percent richest people and from super politically powerful investment banks and hedge funds that these rich people employ, like Morgan Stanley and Goldman Sachs. The bonds are valueless or nearly so, most likely trade for 0 to 40 cents of their face value, but the Federal Reserve will purchase them at their face value, like it has for several years now. In other words, the Fed is rescueing the rich from their own stupid investment decisions. If some affluent person bought their bondsfor $100,000,000 that’s what the Fed will pay for them, if not more, which might happen given inflation.

See the complete misleading story below.

The Federal Reserves Rich People Again–Yahoo news

click on the related story below.

Breakdown of the $26 Trillion the Federal Reserve Handed Out to Save Incompetent, but Rich Investors

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