Eisman Discusses His New "Big Short" In CNBC Interview
Tweet
Share
E-mail
Get Alerts ESI Hot Sheet
Price: $37.40 -0.61%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +37.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +37.4%
Join SI Premium – FREE
In a rare CNBC interview on Wednesday, Steve Eisman, who garnered fame for his short of the subprime mortgage market, discussed his 'big short' in the for-profit education sector.
"The difference between this and subprime is in subprime, the loans went bad no matter what the government did. Here, this scheme is going to go on until the government stops it," Eisman said.
The Department of Education is now proposing new regulations that would possibly curb how the institutions make profits, which are mostly derived off the back of federal student loans.
The new laws would limit the amount that students would be allowed to borrow, as students in this industry are finding it hard to pay back student debt. This would result in few students going to the schools and less revenue for the for-profit education companies.
In a recent interview on CNBC, the CEO of ITT Education Kevin Modany said that the underprivileged will feel the effects of these new loans the most.
"His argument is so pathetic. It would be laughable. His argument is essentially that we educate the underprivileged. We provide education that you can't get elsewhere. So leave us alone," Eisman told CNBC.
Companies that will be impacted by the new regulations include:
"The difference between this and subprime is in subprime, the loans went bad no matter what the government did. Here, this scheme is going to go on until the government stops it," Eisman said.
The Department of Education is now proposing new regulations that would possibly curb how the institutions make profits, which are mostly derived off the back of federal student loans.
The new laws would limit the amount that students would be allowed to borrow, as students in this industry are finding it hard to pay back student debt. This would result in few students going to the schools and less revenue for the for-profit education companies.
In a recent interview on CNBC, the CEO of ITT Education Kevin Modany said that the underprivileged will feel the effects of these new loans the most.
"His argument is so pathetic. It would be laughable. His argument is essentially that we educate the underprivileged. We provide education that you can't get elsewhere. So leave us alone," Eisman told CNBC.
Companies that will be impacted by the new regulations include:
- ITT Educational Services Inc. (NYSE: ESI)
- Apollo Group Inc. (NASDAQ: APOL)
- Strayer Education Inc. (NASDAQ: STRA)
- Corinthian Colleges Inc. (NASDAQ: COCO)
- Education Management Corp. (NASDAQ: EDMC)
- DeVry Inc. (NYSE: DV)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon planning new round of layoffs this week - Barron’s
- The Vita Coco Co. Inc (COCO) PT Raised to $74 at Piper Sandler
- Susquehanna Starts IBM (IBM) at Neutral
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
