Writing in The New York Times, Gretchen Morgenson observes:
In the years before the mortgage crisis, financial regulators often looked the other way as banks and other lenders pursued reckless activities that cost investors, taxpayers and borrowers billions of dollars. When trouble hit, these regulators had to scramble to fix the mess that their inertia had helped create.
This same dismal pattern is now playing out in the for-profit education arena.
She is writing about the Corinthian Colleges debacle which is not, unfortunately, being treated as systemic but as an isolated case that, when cleaned up, can allow for-profit education to continue as before. That is, to take oodles of government money and government-backed loans from naive and desperate students and give very little in return.
Morgenson’s article is worth reading by anyone who believes that privatization is the way to go–in anything. But it is even more…
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