Packer said:
I think with the cost of education it is tough for kids today. Education has become over priced because we are willing to spend money we don't have to pay for it. I don't know how you roll this thing back without somebody getting hurt but the cost is out of line. I just can't put all of the blame on colleges and "Wall Street".
I recall back in the early 90's after the late 80's boom, NJ Public colleges took a ton of heat for raising tuition rates while unemployment was so high.
They rolled it back in several ways.
1. Tuition freeze. Basically, just like the Fed GS jobs now have 0% annual increases.
2. Tapped into their endowment fund to make up the difference between the loss of revenue and bills.
3. State stepped in, and also offered a great program taken from the military playbook.
~~~ At that time nobody wanted to become a teacher, due to low salary, many were doing the accountant, engineer path.
~ They said if you promise to teach, anywhere in the state for 4 yrs, in your field we will give you a free ride for IS. If you majored in EE, you could use all of those Physics classes to get a degree in education for 8-12. Govt and Politics, use the History classes and get qualified in History. They did not say don't get the EE, they just said do both and you will have a guaranteed job upon graduation.
I actually had a friend do this. He majored in Architecture, became a drafting teacher in a HS, and 20 yrs later he is still there.
As far as the blame all on colleges and WS, you are right, parents also created this monster. They allowed their children to go deep in debt for bragging purposes, and keeping up with the Jones family.
However, I really do not hold WS responsible. Those over priced colleges with large endowments, which give merit money to some, came from WS. The colleges OTOH, who were getting 21% ROI, and increasing tuition by 10%, DID NOT SHARE THEIR WEALTH with their students. It was not WS's job to tell the colleges what to do with their gains. It was the COLLEGE's decision. WS did their job, they made money for them. They did not create the amount of debt college kids have, in reality, had the colleges shared their ROI with the students in tuition form, these kids would owe gratitude to WS.
That mutual fund the folks sold so the child would take less loans, came from WS. The money that paid for the small business the folks work for came from WS. WS actually infused money into the economy, it is not their fault that GE(HQ CT) isn't hiring. It is not their fault that companies are greedy. WS is investment. WS is not the HQ for Raytheon (MA), Dupont (DE), J &J (NJ), Wells Fargo (San Fran), Microsoft (WA). Their money is traded on WS, but their anger about no job is misguided. WS has no voice on if and when companies employ. If you have a mutual, didn't you invest in it because of the ROI? Did they now turn and say you must give X% of your dividend to someone or something? NO! They said we made you the money, you decide how to spend it. Would your child hold your mutual fund accountable if you didn't sell any shares for their college education? If they cannot hold them accountable personally in this situation, than how is it different with companies being replaced for the parents?
I do agree are some of these bonuses inane? Yes, but remember that even as a mutual fund investor, you get sent every yr a proxy for their annual shareholders meeting. You have the right to go to that investor and demand that they divest from these same companies that the protesters are screaming about. Look back in the late 80's we had many companies that were invested in Africa, but people started demanding as share holders that they leave due to human rights violations. They did. Heck, I remember in 1990 we were living in the UK as a military family. The commissary removed all PET products (company name...made the equivalent to cool whip, and things like that) because of this issue. I think the business went bust. RJ Reynolds also had an issue because of the Tobacco whistle blower issue, and all of the lawsuits, so people were fighting them as a share holder they answered to for investments.
That is the difference to me. These people don't realize that all they are is an annoyance, but mean absolutely nothing to them. Now if they were smart, they would all buy a share in one company and start showing up at their annual shareholders meeting. Get organized as you are sleeping in tents, and pick 10, 20, 50 companies.
Buy 1 share of J & J if healthcare is your fight...64 bucks...500 of you do it and all show up that share holders meeting and you will get their attention....plus the media.
Buy 1 share of BofA at $7 bucks if your fight is about the constriction of loans or banking fees.
Buy 1 share of Lockheed at $75 if your fight is about defense spending.
Kids I get protesting because they really don't know how the system works for WS. People who had even a 401K or an IRA before getting a pink slip should know better, and I just see them as fools.
The big wigs getting the big bonuses all got them approved through the share holders meeting. You as a stock holder have the right to say NO, if you did not send in your proxy, you let it happen.