Fox News FailPosted: March 31, 2010
This one will be short and although I can tear open nearly all of the US based media, I’m picking on Fox News because that’s what I am watching right now.
Ok, so right now, in addition to the standard ripping apart “Obamacare” now we are getting an attack on the SAFRA reform.
“Without any debate, Congress crammed through a bill that will take private enterprise out of the student loan business.”
So many problems with this, but I’ll hit the two biggest ones.
1) “Without any debate…” Except that it was in the House for a long time, debated, amended, AND PASSED! So fallacy number one.
2) “that will take private enterprise out of the student loan business.” NO! No, no, no, no, no! Despite what Glenn Beck says, the “private enterprise” had virtually no hand in this business!
Formerly, the FedGov would guarantee student loans 97% to banks leaving virtually no risk to them to loan at rates specified by the Fed. So, all loans were the same and the banks were not risking anything, simply gaining the interest.
So tell me Fox News (or any other news outlet) HOW IS THIS GOVERNMENT INTERFERENCE?! The Fed controlled it before via set rates and guaranteed loans so we’re just cutting out the middleman.
If you are from a bank and are attacking this because it will cut into your profits, then fine, money is important, however, if you are attacking this because of “governmental intervention in private enterprise” then you have picked the wrong issue.
Fox News Fail