Why university is not a good investment

Why  university is not a good investment.


Two-thirds higher education of graduates now take out loans.

9.1% of borrowers in 2011 had defaulted on their federal student loans within two  years of graduating. 

3% of US GDP is spent  in higher education.

Coursera and Udacity are free.

Elites and bureaucrats are the middlemen in the transfer of resources from the tax payer to the poor

Elites and bureaucrats are the middlemen  in the transfer of resources from the tax payer to the poor and vulnerable and the cut that elites and bureaucrats are taking for their job is becoming bigger and bigger.

Liberty creates more inequality.

People vote indicates a belief, or a whim, but not a  choice.

Economic growth is needed to improve the well-being of the poor,  and economic growth means instability.

People who cannot govern their own lives cannot afford nothing unpredictable.

Liberty  creates more inequality.

Entitlements are becoming the modern social injustice.

The best economic indicators

The best economic indicators

The number of days in a week  the van of my neighbor is in his driveway.

The number of days the usual perfect used car that my neighbor put on sale for $2.000 stays in the his driveway.

The number of days the foreclosure for sale signs in my neighborhood stay in the yard.

Pushing for raising taxes and trying to avoid tax increase

At the Democratic National Convention, Costco
 co-founder and former CEO Jim Sinegal provided
 his endorsement of President Obama.

He also  pushed for raising
the top marginal rates in the federal income tax code.


Months later Jim Sinegal and the rest of the Costco
 board voted to give themselves a
special dividend to avoid Mr. Obama's looming
 tax increase.

Create theories out of practice through a trial and error proces

Create theories out of practice through  a trial and error process.
Create and destroy in order to grab  opportunities.
If you want to get something you must take risk.

To Whom Does The U.S. Government Owe Money?

The Biggest Holders of US Government Debt



1. Social Security Trust Funds

U.S. debt holdings: $2.67 trillion


2. U.S. Federal Reserve

U.S. debt holdings: $1.659 trillion

3. China

U.S. debt holdings: $1.169 trillion


4. Savings Bonds & Other Investors

U.S. debt holdings $1.102 trillion

With the most recent numbers from December
 2011, this extremely diverse group includes
individuals, government-sponsored enterprises,
brokers and dealers, bank personal trusts, estates,
savings bonds, corporate and non-corporate businesses
 for a total of $1.102 trillion.


5. Japan

U.S. debt holdings: $1.083 trillion

6. Pension Funds

U.S. debt holdings: $903.4 billion


7. Mutual Funds

U.S. debt holdings: $797.9 billion

 Including money
 market funds, mutual funds and closed-end funds,
this group of investment funds manages approximately
 $797.9 billion of U.S.



8. State and Local Governments

U.S. debt holdings: $444.6 billion



9. Medicare Trust Funds

U.S. debt holdings: $324.57 billion

The trust funds supplying capital to Medicare -
the Hospital Insurance Trust Fund and the Supplementary
 Medical Insurance Trust Fund - hold approximately
$324.57 billion in U.S. Government debt, according
to the Treasury. The Hospital Insurance Trust Fund
draws revenue mostly from payroll taxes and pays for
 Medicare Part A benefits, including inpatient

10. Depository Institutions

U.S. debt holdings: $286.3 billion

This group includes commercial banks,
savings banks and credit unions and in
2011 holdings nearly tripled from the 2008
low of $105 billion.

European banks  hold some €1.6 trillion
 ($2.1 trillion) in sovereign bonds.




11. Oil Exporters

U.S. debt holdings: $254.5 billion
Ecuador, Venezuela, Indonesia, Bahrain, Iran,
Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United
Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
The group combines for a total of $254.5 billion,



12. Insurance Companies

U.S. debt holdings: $253.7 billion

According to the Federal Reserve Board of Governors,
 insurance companies hold $253.7 billion in Treasury
securities. This group includes property-casualty
 and life insurance firms.



13. Brazil

U.S. debt holdings: $237.4 billion

14
Caribbean Banking Centers

U.S. debt holdings: $224.8 billion
15
Taiwan

U.S. debt holdings: $184.4 billion
16
Russia's $146.7 billion and

17
Hong Kong’s $138.8 billion.

2671
1659
1169
1102
1083
903
798
445
324
286
254
254
237
225
184
146
139
TOTAL: 11879


 As of 15 November 2012, debt held by the
public was approximately $11.45 trillion
or about 72% of GDP. Intra-governmental
holdings stood at $4.83 trillion, giving
a combined total public debt of $16.28 trillion