CLAIM: Obama Admin Oversaw ‘Biggest Accounting Fraud In History’ — Is It True?

Written by Wes Walker on September 8, 2019

Obama’s ‘scandal-free’ presidency claim is taking a lot of hits these days, but has ANYONE mentioned THIS one before?

With all the expensive promises being thrown around by the 2020 wannabes, the topic of student loans has been front-and-center.

And that could prove to be some bad news for the #44th President.

Especially now that financial experts are reflecting on what, exactly Obama did during his own presidency. They said he ‘recreated the worst aspects of the sub-prime crisis’.

The Wall Street Journal’s editorial board (WSJ) recently suggested that the Obama administration pulled off “the biggest accounting fraud in history” with student loans when eliminating the role of private lenders in the federal student lending market.

…In 2010, Democrats “nationalized the market to help pay for Obama Care,” WSJ asserted. “The Congressional Budget Office at the time forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.”

The WSJ op-ed also highlighted the rising number of severely delinquent student loans since then and blamed the Obama administration for expanding plans in 2012 for new borrowers “to reduce defaults, buy off millennial voters and disguise the cost of its student-loan takeover.”

The editorial board then added: “This may be the biggest accounting fraud in history.”
Source: Yahoo

What makes it the biggest accounting fraud in history?

Well, the Congressional Budget Office projection that Obama’s policy would SAVE taxpayers $58 Billion over 10 years was… just a little bit off.

Instead of SAVING taxpayers $58 Million… it actually COST us money. A lot of money.

It’s costing $310 Billion over the next ten years.

That was just a tad bit off, eh?

The WSJ argued that the key catalyst for the student debt crisis today — $1.48 trillion student loans outstanding, with 35% of the consumer loans in the “severely derogatory” category — was a result of the Obama administration’s policies regarding income-driven repayment (IDR) plans.

IDR plans allow borrowers to cap monthly student loan payments based on how much money they are making at a given time. As of September 2018, “almost half of the $898 billion in outstanding federal Direct Loans [were] being repaid by borrowers using IDR plans,” according to the Government Accountability Office.
Source: Yahoo

The original article goes into much more detail including how students could get stuck paying interest for loans LONG after they are willing and able to pay them. It also explains why the underwriting has, in their view, recreated the worst aspects of the Subprime Crisis. Read the rest HERE.

So, to recap…

A government proposal designed to supposedly help people AND save money has not saved the government any money.

Even WORSE, the student debt problem is worse than it has been and has precipitated even BOLDER and MORE expensive promises of student debt forgiveness.

The formula — one massive government solution fails to deliver on the promised benefit to taxpayer while generating a new problem that Leftist claim will require government intervention to solve.

Look around…

…are there any OTHER government programs where this VERY same problem could bite us in the ass?

Will the create-a-problem-that-needs-a-bigger-government-to-solve-it dynamic come into play anywhere else?

How about Obamacare? Did it deliver on its promises? Did it save us money? Is our health care better? Or are they already charging ahead to the next ‘solution’ requiring even BIGGER government involvement?

Like Medicare-For-All.

And what ‘big promises’ do the 2020 hopefuls have in store for us with the Green New Deal and all the other grand promises flying around the Democrat 2020 wannabe platforms?

What will the REAL cost be?

Not just in dollars… that’s bad enough.

But how do we possibly BEGIN to calculate the cost that would have upon our freedoms?

We’ve all seen the dishonest games the left have played with the power they’re entrusted with, they’re obviously unworthy of that trust.

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