Let's hope he is right.

News. ALEXANDRIA, Va. — President Obama signed legislation on Tuesday to expand college access for millions of young Americans by revamping the federal student loan program.

The new law will eliminate fees paid to private banks to act as intermediaries in providing loans to college students and use much of the nearly $68 billion in savings over 11 years to expand Pell grants and make it easier for students to repay outstanding loans after graduating. The law also invests $2 billion in community colleges over the next four years to provide education and career training programs to workers eligible for trade adjustment aid after dislocation in their industries.

My point. The government is increasing its reach. Housing. Healthcare. Autos. Now student loans.

The government is going to do a lot of good things for us. They all seem to be good ideas. Somehow I still think that all this lending is going to make us poorer. We work to pay interest to the banks or to the government (mortgages, cars, student loans, interest on the deficits, and taxes).

I hope they know what they are doing. Another thing that is bothering me is that our income is not growing. How do we pay for all this?

Hopefully Washington knows what needs to be done.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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