Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Actually, in the case of WB and Tim Horton's, there is more to the story. Tim Horton's is Canadian and is more to them than McDonalds is here - it's a bloody national icon and the Canadian gov't wouldn't approve any buyout unless the new company headquartered itself in Canada.
Second, with Warren bankrolling ~25% of the deal with bonds, apparently will cause dividends to be taxed at the much higher (30-35%) dividend taxation rate than here stateside where it's 15%. Net/net, there is a good possibility that the US will actually take in more tax revenue than now.
All that said, I'm more than ready to boycott any corporation that inverts. I think they're the worst sort of corporate scum.
The issue however, while it's easy to blame the tax code, is more the short term p/l statement accounting we use in this country. The focus is on profits NOW - not tomorrow. All short term. With no focus on the long term, things like warranty work, good will, community involvement . . . and human beings - are ALL inefficient and not in the best interests of short term profits. Period.
Unless us human beings redefine corporate laws to force them to consider the long term, we'll be eliminated as a species on this earth by the corporations.
Your question about student loan default correlations to For-profit and Nonprofit institutions prompted me to do a quick web search since I am a total neophyte in this arena. This is a hot topic and there are tons of articles, and even a few statistically oriented research papers on the subject.
I located one on the American Student Assistance’s (ASA) site authored by the Institute for Higher Education Policy (IHEP). It does not present correlations, but it does report frequencies of both delinquencies and defaults which are the raw data that governs correlations. Here is the Link to a study titled “Delinquency: The Untold Story of Student Loan Borrowing”:
I’m not familiar with the referenced source or student loan stats, but these data seem to be reliable and reasonably accurate. The reported data passes the smell test in that the number trends in several directions appear to be logical.
The report contains many excellent summary tables. Please access Table 5 (page 23) to directly answer your question. This Table presents both delinquent and default data cut-and-sliced several ways. A little surprisingly, 4-year baseline pubic and nonprofit schools have roughly the same default rate at about the 10% level. The 4-year For-profit institutions multiply that default rate by a factor of approximately 2.5. Costs matter.
Graduate students have a low single digit default rate, whereas those students who do not complete their course work default at 150% of the rate recorded by those who complete their degrees. These seem like expected outcomes.
Please access the referenced study. I suspect it will answer many of your questions. However, it failed to answer one of mine. What are the default stats relative to curriculum or major?
I would project that medical and engineering students have a much lower default rating than most other disciplines. Earnings and employment power after graduation must impact the statistics.
I’m appalled at some of the courses that current students waste time taking, and are encouraged to do so by biased, vested professors and guidance counselors. Many courses do not enhance employment likelihood whatsoever. They squander both resources and a student’s limited time.
Whatever happened to paying for an education beyond K-12 from family savings, from partial scholarships, from a work ethic while at school, or from a combination of these time tested techniques? Change happens, but not always in the right direction.
I too am in the camp that college is not for everyone or required for every occupation. It is a personal choice.
I hope you find the referenced study useful regardless of my commentary.
The institutions of so called higher learning should be responsible to repay the feds for any accounts of people who do not complete their programs. They would be held responsible to better screen their students. In effect they would have skin in this game.
I am confused. Ted was listed as who initiated this posting, but Rono is listed instead. Also MJG is addressing Jlev who is nowhere to be find on this posting. Very confusing...
@Sven you're on page two. Our contributions were on page one. There's a link at the bottom. I'm doing some data mining and will get back to people. Not sure what Ted is up to.
Comments
Actually, in the case of WB and Tim Horton's, there is more to the story. Tim Horton's is Canadian and is more to them than McDonalds is here - it's a bloody national icon and the Canadian gov't wouldn't approve any buyout unless the new company headquartered itself in Canada.
Second, with Warren bankrolling ~25% of the deal with bonds, apparently will cause dividends to be taxed at the much higher (30-35%) dividend taxation rate than here stateside where it's 15%. Net/net, there is a good possibility that the US will actually take in more tax revenue than now.
All that said, I'm more than ready to boycott any corporation that inverts. I think they're the worst sort of corporate scum.
The issue however, while it's easy to blame the tax code, is more the short term p/l statement accounting we use in this country. The focus is on profits NOW - not tomorrow. All short term. With no focus on the long term, things like warranty work, good will, community involvement . . . and human beings - are ALL inefficient and not in the best interests of short term profits. Period.
Unless us human beings redefine corporate laws to force them to consider the long term, we'll be eliminated as a species on this earth by the corporations.
peace,
rono
Your question about student loan default correlations to For-profit and Nonprofit institutions prompted me to do a quick web search since I am a total neophyte in this arena. This is a hot topic and there are tons of articles, and even a few statistically oriented research papers on the subject.
I located one on the American Student Assistance’s (ASA) site authored by the Institute for Higher Education Policy (IHEP). It does not present correlations, but it does report frequencies of both delinquencies and defaults which are the raw data that governs correlations. Here is the Link to a study titled “Delinquency: The Untold Story of Student Loan Borrowing”:
http://www.ihep.org/assets/files/publications/a-f/delinquency-the_untold_story_final_march_2011.pdf
I’m not familiar with the referenced source or student loan stats, but these data seem to be reliable and reasonably accurate. The reported data passes the smell test in that the number trends in several directions appear to be logical.
The report contains many excellent summary tables. Please access Table 5 (page 23) to directly answer your question. This Table presents both delinquent and default data cut-and-sliced several ways. A little surprisingly, 4-year baseline pubic and nonprofit schools have roughly the same default rate at about the 10% level. The 4-year For-profit institutions multiply that default rate by a factor of approximately 2.5. Costs matter.
Graduate students have a low single digit default rate, whereas those students who do not complete their course work default at 150% of the rate recorded by those who complete their degrees. These seem like expected outcomes.
Please access the referenced study. I suspect it will answer many of your questions. However, it failed to answer one of mine. What are the default stats relative to curriculum or major?
I would project that medical and engineering students have a much lower default rating than most other disciplines. Earnings and employment power after graduation must impact the statistics.
I’m appalled at some of the courses that current students waste time taking, and are encouraged to do so by biased, vested professors and guidance counselors. Many courses do not enhance employment likelihood whatsoever. They squander both resources and a student’s limited time.
Whatever happened to paying for an education beyond K-12 from family savings, from partial scholarships, from a work ethic while at school, or from a combination of these time tested techniques? Change happens, but not always in the right direction.
I too am in the camp that college is not for everyone or required for every occupation. It is a personal choice.
I hope you find the referenced study useful regardless of my commentary.
Best Regards.
http://www.washingtonpost.com/blogs/post-politics/wp/2014/08/26/congress-wants-to-keep-burger-king-from-having-it-their-way-on-taxes-but-cant-agree-on-how/?tid=hpModule_ba0d4c2a-86a2-11e2-9d71-f0feafdd1394&hpid=z10