[RonaldusMagnus]

Originally Posted by HumpDay

Holy **** that came out of nowhere

WSJ has been covering it for a minute. Their latest was on Aug 29th:

Obama’s For-Profit Execution
How to kill a company without proving a single allegation.

Say what you will about the Obama Administration, it isn’t slowing down as it heads for the exits. The Education Department wants to put as many for-profit colleges as possible out of business, and last week it gave ITT Technical Institute a de facto death sentence.

The ITT story is worth telling because it shows how a regulatory assault can kill a company without proving a single allegation. The department first targeted ITT in August 2014 when it put the school on probation and demanded an irrevocable $80 million letter of credit.

This was a signal for some 20 state Attorneys General, the Securities and Exchange Commission and Consumer Financial Protection Bureau to pounce, probing everything from the college’s student recruitment and graduate job placement to its third-party private student loan program. ITT denies their allegations, but that is irrelevant when the feds have marked you for termination.

The investigations triggered a review by the Accrediting Council for Independent Colleges and Schools, which in April threatened to withdraw ITT’s accreditation because the government litigation challenged the company’s financial viability. The Education Department then used the accreditor’s warning as the reason to raise its collateral demand to $123 million.

ITT has also warned investors that it might not be able to meet the department’s financial metrics because “a significant amount of the Company’s cash is and will be held” in an escrow account with the department. So putting up the cash collateral has made it more difficult, if not impossible, to fulfill other regulatory demands. How’s that for a Catch-22?


In July ITT notified investors that it expected new student enrollment in the fall to drop from 45% to 60%, after falling by half to 45,000 since 2010. Revenues have shrivelled to $850 million. The department announced last week it would delay federal student aid disbursements and cut off aid to new enrollees.

These actions alone could precipitate ITT’s demise, but department regulators have made bankruptcy even more likely by demanding $153 million more in collateral in 30 days. If the company fails to comply, the department can revoke federal aid for current students.

This would likely force the immediate closure of all 130 some ITT campuses. Hundreds of millions of dollars of student loans could be eligible for discharge. Unlike in a corporate bankruptcy, the company won’t control its dissolution. The government has barred “out of the ordinary expenditures without department approval.” Money held in escrow won’t be available to creditors.

The department justifies all this in the name of protecting taxpayers who finance student loans, but an ITT bankruptcy could strand thousands of students who have already borrowed to attend but would get no degree. When the feds killed Corinthian Colleges in 2014, they triggered a chaotic collapse that has resulted in more than $170 million in student debt relief. Taxpayers may get a similar bill for ITT.

As recently as January 2014 parent company ITT Educational Services’s shares traded at more than $45, but on Monday they were worth 45 cents. The government has never had to prove its claims in court. When angry voters refer to a “lawless” government, this is what they mean.

[East of the River]

Originally Posted by RonaldusMagnus

False, NH has a net IN-migration of 2.2%

My mistake you are correct. But they are in the bottom 15 for growth.
https://en.wikipedia.org/wiki/List_o...on_growth_rate

[RonaldusMagnus]

Originally Posted by East of the River

My mistake you are correct. But they are in the bottom 15 for growth.
https://en.wikipedia.org/wiki/List_o...on_growth_rate

No, that is not net migration. Net migration controls for immigration and birth rate. It is a zero sum measure that only measures movement BETWEEN states of people. This gives the most accurate view.

Here is the definition:

The net migration rate is the number of in-migrants to the state from other states and DC, minus the number of out-migrants from the state over the same period to other states and DC, expressed as a percentage. (Data are from the Census Bureau.) Thus, a state with a net migration rate of zero sees all its population growth coming from natural increase and net international immigration. This measure is one of the best indicators of the growth of a state's economy. Per capita income and GDP figures reward states for turning out their low-skill workers. Population growth rewards states that have lots of babies (like Utah) or states that happen to have major international airports (like New York). By contrast, a state that attracts people from other states almost certainly does so because it is offering more employment opportunities or a better quality of life than other states.

[East of the River]

Originally Posted by RonaldusMagnus

WSJ has been covering it for a minute. Their latest was on Aug 29th:

Obama’s For-Profit Execution
How to kill a company without proving a single allegation.

Say what you will about the Obama Administration, it isn’t slowing down as it heads for the exits. The Education Department wants to put as many for-profit colleges as possible out of business, and last week it gave ITT Technical Institute a de facto death sentence.

The ITT story is worth telling because it shows how a regulatory assault can kill a company without proving a single allegation. The department first targeted ITT in August 2014 when it put the school on probation and demanded an irrevocable $80 million letter of credit.

This was a signal for some 20 state Attorneys General, the Securities and Exchange Commission and Consumer Financial Protection Bureau to pounce, probing everything from the college’s student recruitment and graduate job placement to its third-party private student loan program. ITT denies their allegations, but that is irrelevant when the feds have marked you for termination.

The investigations triggered a review by the Accrediting Council for Independent Colleges and Schools, which in April threatened to withdraw ITT’s accreditation because the government litigation challenged the company’s financial viability. The Education Department then used the accreditor’s warning as the reason to raise its collateral demand to $123 million.

ITT has also warned investors that it might not be able to meet the department’s financial metrics because “a significant amount of the Company’s cash is and will be held” in an escrow account with the department. So putting up the cash collateral has made it more difficult, if not impossible, to fulfill other regulatory demands. How’s that for a Catch-22?


In July ITT notified investors that it expected new student enrollment in the fall to drop from 45% to 60%, after falling by half to 45,000 since 2010. Revenues have shrivelled to $850 million. The department announced last week it would delay federal student aid disbursements and cut off aid to new enrollees.

These actions alone could precipitate ITT’s demise, but department regulators have made bankruptcy even more likely by demanding $153 million more in collateral in 30 days. If the company fails to comply, the department can revoke federal aid for current students.

This would likely force the immediate closure of all 130 some ITT campuses. Hundreds of millions of dollars of student loans could be eligible for discharge. Unlike in a corporate bankruptcy, the company won’t control its dissolution. The government has barred “out of the ordinary expenditures without department approval.” Money held in escrow won’t be available to creditors.

The department justifies all this in the name of protecting taxpayers who finance student loans, but an ITT bankruptcy could strand thousands of students who have already borrowed to attend but would get no degree. When the feds killed Corinthian Colleges in 2014, they triggered a chaotic collapse that has resulted in more than $170 million in student debt relief. Taxpayers may get a similar bill for ITT.

As recently as January 2014 parent company ITT Educational Services’s shares traded at more than $45, but on Monday they were worth 45 cents. The government has never had to prove its claims in court. When angry voters refer to a “lawless” government, this is what they mean.

As in everything there are two sides. While I would agree this does strand students and has a negative effect. It appears ITT has had money problems for a while and the bond was requested to guarantee loans from the government. Also ITT has known this might happen for a while. They are also under investigation for fraud by the FCC for misreporting earnings.

https://www.insidehighered.com/news/...editation-line

[East of the River]

State Migration Rates, Net Totals: 2010-2015

This link seems to be the only one I could find with Net migration by state. Which still doesn't show NH all that high but yes better then CT and NY (it shows midpack performance) If anything looking at the list I would say factors in movement would be (in my order based on what I know of the states)

1)Income vs COL
2) # of high paying jobs regardless of COL
3) Lifestyle (urban country etc)
4) Climjate
5) Higher education
6) COL without regards to income (retirees)
7) Taxes
8) regulation

[RonaldusMagnus]

Originally Posted by East of the River

State Migration Rates, Net Totals: 2010-2015

This link seems to be the only one I could find with Net migration by state. Which still doesn't show NH all that high but yes better then CT and NY (it shows midpack performance) If anything looking at the list I would say factors in movement would be (in my order based on what I know of the states)

1)Income vs COL
2) # of high paying jobs regardless of COL
3) Lifestyle (urban country etc)
4) Climjate
5) Higher education
6) COL without regards to income (retirees)
7) Taxes
8) regulation

Just use the easy clickable map here: Freedom in the 50 States 2015-2016 | Overall Freedom | Cato Institute

[BPt111]

Should CT boost wage to $15 hour

Group calls for CT min.-wage hike to reverse earnings decline | HartfordBusiness.com

[RonaldusMagnus]

Originally Posted by BPt111

Should CT boost wage to $15 hour

Group calls for CT min.-wage hike to reverse earnings decline | HartfordBusiness.com

Not if economic literacy is part of the equation.

[RunD1987]

I don't think the State should step in saying what business can or can't do. Think they should focus on ways to increase less minimum wage jobs, make housing more affordable, take the initiative to make a State run health insurance market, lower cost of higher education, and work on ways to lower taxes.

[HumpDay]

Originally Posted by BPt111

Should CT boost wage to $15 hour

Group calls for CT min.-wage hike to reverse earnings decline | HartfordBusiness.com

The minimum wage issue is seen as a morality issue rather than a economic issue. If you cut the profit gap and a company has $30 to spend on its 3 employees, but once it's raised to $15 an hour then one of them will have to be fired. You'll see a spike in the unemployment and it's unfair to say to a business that you're forced to pay them more which doesn't make it consensual.