Obama Student Loan Nationalization To Save Less Than Estimated

Obama's student loan plan was sold as saving $87 billion over 10 years. But as with all of Obama's projections, the CBO says it is garbage. Instead, the CBO reduced projected savings by almost half to $47 billion over ten years.

Let's take the savings at face value. One might ask, isn't any savings better than nothing? But this question ignores a key point:

The government will take on huge risks by putting $1 trillion in taxpayer dollars at risk. If the default rates are slightly higher than projected, the savings will suddenly turn into losses. The only way the government is "saving money" is by taking away industry profits, which are necessary to justify the risk. The same "savings" argument could be made for nationalizing clothing stores, fast food restaurants or any other private business.

Credibility on cash flow projections? Obama and Pelosi have none.