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President Obama spoke Friday in Tennessee, which is starting its own tuition program for community college students. His proposal, modeled after Tennessee’s, is to make the schooling free. (Photo: Jabin Botsford/The New York Times)

Months before Caitlin Johnson graduated from high school, she opened Ohio State University’s early-decision letter and felt the doors open wide.

For as long as she could remember, she’d wanted to go to OSU’s veterinary school. She was on her way.

But on the drive home with her parents after visiting the campus, she heard the doors slam shut.

“It was a sobering visit,” she said. “It was so expensive. We knew there was no way I could do it without ending up with a mountain of debt before I even started vet school.”

About the same time, she got an unsolicited letter from Lorain County Community College in Northeast Ohio, where she lived. Her academic and extracurricular records qualified her for a two-year full scholarship to the college.

“I put the letter in the trash,” she said. “No way was I going to a community college. I was afraid it would hurt my chances of getting into vet school.”

Fortunately, maternal wisdom — abetted by a healthy dose of nosiness — intervened. “Moms being moms, my mom found the letter in the trash,” Johnson said. “She said: ‘You’re going. They’re giving you more than the cost of an education.'”

Reluctantly, Johnson enrolled in 2007.

In May, she will graduate from Ohio State’s veterinary school, and she already has a job with a rural practice.

“All my credits transferred,” she said. “And the classes were so challenging. A lot of the instructors were retired from larger universities.” She laughed. “Around the time I was taking organic chemistry, I knew LCCC was as tough as Ohio State.”

Earlier this month, President Barack Obama announced a plan that would provide tuition-free classes at community colleges for students who attend at least half time, maintain a minimum GPA of 2.5 and make steady progress toward a degree.

Predictably, Republicans and conservative commentators have lambasted this idea, often to the point of ridicule.

From last week’s Wall Street Journal editorial: “Community colleges … attempt to narrow the skills gap for high-school graduates who don’t attend four-year colleges. The schools vary widely in quality, and in practice they often provide remedial training in basic math and reading skills to kids who were promoted through failing K-12 schools.”

As for that 2.5 GPA? “You have to work hard not to get that grade.”

There is so much wrong with this attitude, starting with the description of people who attend community colleges and why.

Ken Phillippe, who oversees research at the American Association of Community Colleges in Washington, D.C., said there are many narratives about college students that are as false as they are enduring. Only 15 percent of students at four-year colleges, for example, are full-time and living on campus, he said.

The average age nationally for a community college student is 29; the median age is 23. About 8 percent of them already have four-year degrees and enroll for additional training. As for this notion that community college students are mostly remedially challenged kids tumbling straight from failed tenures in high school?

“That’s a frequent misperception,” Phillippe said. “They’ve never visited a community college. They haven’t met any of the students.”

Nationally, the remedial rate for community college students is high, about 60 percent. At some urban community colleges, such as Cuyahoga Community College in Cleveland, the percentage climbs to 90, but spokesman John Horton is quick to caution against assumptions.

“If you haven’t been to school in decades, it’s a shock,” he said. “You should see how hard they work once they get here.”

Phillippe agrees. “It often takes only one class to get them ready. And keep in mind, a third of them are the first in their families to go to college.”

At Tri-C, 65 percent of the nearly 60,000 students enrolled attend part time. “Life gets messy,” Horton said. “A lot of these students are furthering their education while juggling all of their other responsibilities with jobs and families.”

Or, to put it another way, they aren’t Wall Street Journal editorial board members. A quick review of their online bios reveals an abundance of degrees from Yale, Harvard, Dartmouth, Northwestern, Georgetown, the University of Chicago and Oxford University.

I have no grievance with these revered institutions. Two of our children are Ivy League graduates. My beef is with those whose leave them with a sense of privilege that blinds them to how most Americans struggle and fuels a sense of superiority at the very thought of them.

When I asked Caitlin Johnson what kind of students she met at community college, she laughed again.

“The better question is, ‘Who didn’t I meet?’ There were people straight out of high school and those who were returning for second careers. There were a lot of people older and smarter than I am.”

I asked this bright young woman whether maybe “wiser” is the better word.

“Maybe,” she said. “All I know is that long before I realized it, they were getting me ready to be a vet for everyone.”

Connie Schultz is a Pulitzer Prize-winning columnist and an essayist for Parade magazine. She is the author of two books, including “…and His Lovely Wife,” which chronicled the successful race of her husband, Sherrod Brown, for the U.S. Senate.

Pulitzer Prize-winning columnist Connie Schultz takes on

National and State Mortgage Risk Indices

National and State Mortgage Risk Indices are tracked and released by AEI’s International Center on Housing Risk.

A monthly index tracking housing market risk hit a series high in the month of December, further blunting confidence in the sluggish housing sector.

The composite National Mortgage Risk Index (NMRI) for Agency purchase loans hit a series high of 11.84 percent in December, up 0.4 percent from the prior three-month average and 1.1 percent from a year earlier. Within the composite, the risk indices for the Federal Housing Administration (FHA) and Veterans Administration (VA) also hit series highs in December.

“With the NMRI hitting a series high, the risks posed by the government’s 85 percent share of the home purchase market are troubling, given that the combined capital of the agencies backing these loans is zero,” said Stephen Oliner, codirector of AEI’s International Center on Housing Risk.

The December index was based on more than 200,000 home purchase loans, which is an unusually large and thorough representation of all loans with a government guarantee. With the addition of these loans, the total number of loans that have been risk rated in the NMRI since December 2012 moved above 5.29 million.

Other noteworthy results from the December NMRI include the following (via AEI):

• The QM regulation does not appear to be reducing the volume of high DTI loans: over the past 3 months, 23 percent of loans had a total DTI above 43 percent, which is up 1 percent from 2013:H2.

• The FHA is not compensating for the riskiness of its high DTI loans; Fannie and Freddie are compensating only to a limited extent.

• FHA’s NMRI stood at 24.33 percent in December, up 0.2 percentage point from the average for the prior three months, and 1.6 percentage points from a year earlier.  The current level implies that nearly one-quarter of FHA’s recently guaranteed home purchase loans would be projected to default under severely stressed conditions akin to the 2007-08 financial crisis.

• The softness in mortgage lending is not due to tight standards but to reduced affordability, loan put back risk, and slow income growth for many households.

The latest NMRI results come as the Commerce Department reported Wednesday that single-family housing starts rose by 7.2 percent to a seasonally adjusted annual pace of 728,000 units, the highest level in more than 6-1/2 years (March of 2008). While most media outlets will slant the report as the first good piece of data out of the sluggish housing market in months, the increased risk associated with any of the existing or new housing demand is truly cause for concern.

This is particularly true for American home-buyers proponents of high-risk government-sponsored programs profess to aim to help.

“The need to objectively track mortgage risk is even more important today given the ill-conceived launch of a price war between the government agencies Fannie Mae and FHA,” said Edward Pinto, codirector of AEI’s International Center on Housing Risk. “This war will increase risk levels and fuel home price volatility, particularly in lower-income and minority areas.”

A monthly index tracking housing market risk

Freshman Sen. Joni Ernst of Iowa (R-IA) not only avoided past disasters while delivering the GOP’s State of the Union response, but actually earned bipartisan praise. In a speech given after one of the most difficult acts to follow, Ernst talked directly to Americans about the contrasting visions of President Obama and the new Republican majority, as well as her childhood growing up in Iowa and the dysfunction in Washington D.C.

“Tonight, rather than respond to a speech, I’d like to talk about your priorities,” Sen. Ernst said. “I’d like to have a conversation about the new Republican Congress you just elected, and how we plan to make Washington focus on your concerns again.”

With 7 minutes to deliver a compelling argument, a good SOTU response should simply compare and contrast visions, which Ernst did well. However, it was her attempt (a rather successful one) to humanize the Republican Party that perhaps only Ernst could have done as effectively. She said she was “raised to live simply, not to waste,” and that “was a lesson my mother taught me every rainy morning” when she would put a bread bag over her only pair of shoes to keep them dry.

“But I was never embarrassed,” Ernst said. “Because the school bus would be filled with rows and rows of young Iowans with bread bags slipped over their feet.”

The story drew a clear contrast with the message of waste and excess coming out of Washington, while “many families feel like they’re working harder and harder, with less and less to show for it.”

“I think tonight a semi-star was born, I think Senator Ernst from Iowa helped put a fresh face on the Republican Party,” George Will said immediately following her SOTU response Tuesday night. “I think the president gave a curious speech saying we’re all going to get along and I’m going to veto any important thing you send to me.”

The president issued no less than four veto threats in his State of the Union speech, but Ernst made clear the Republican Congress will force him to do so on a Keystone (Jobs) pipeline bill, “ideas that aim to cut wasteful spending and balance the budget,” and to “repeal and replace a health care law that has hurt so many hardworking Americans.”

“Congress is back to work on your behalf, ready to make Washington focus on your concerns again,” she said. The Iowan senator even explained how Republicans have brought regular order back to the Senate, which under Harry Reid (D-NV) was nonexistent, and decried it as an important first step to ending Washington dysfunction.

That’s a break from the message heard by some in the party, who say the more dysfunction the merrier, because government operates best when it operates less. It’s a message even liberals took notice of, and think it’s a strong one for Democrats to counter.

“If you look at the polls, the American people — whether it’s Republicans, Democrats or independents — believe that Washington dysfunction is actually hurting them,” liberal pundit Juan Williams said. “I think she did a great job, but when she was talking about getting Washington to work for the American people again, she knocked it out of the park.”

Freshman Sen. Joni Ernst of Iowa (R-IA)

housing market

The Commerce Department said Wednesday single-family housing starts rose by 7.2 percent to a seasonally adjusted annual pace of 728,000 units. The December numbers were at the highest level in more than 6-1/2 years, or March of 2008, and are one of the first good pieces of data out of the sluggish housing market in months.

That rise in the largest part of the market offset a 0.8 percent decline in groundbreaking for the volatile multi-family homes segment, which increased overall housing starts 4.4 percent to a 1.09 million-unit rate last month.

Economists polled by Reuters had forecast starts increasing to a 1.04 million-unit pace.

Despite other economic indicators suggesting growth and a recovery, the housing market has lagged behind, as zero wage gains are sidelining first-time buyers from the market and forcing many young adults to stay living at home with their parents or share homes with other relatives and friends.

Higher house prices and stringent lending practices by financial institutions also have been a constraint, despite the increased risk injected into the market via government intervention by the Federal Housing Administration.

As a result, residential construction has been very weak, as well. Experts say the slow pace of homebuilding has been a product of high debt loads among recent college graduates and the lack of good-paying jobs.

Household formation is currently running at about 500,000 a year, far below the more than 1-million mark that would signal a robust housing market.

Throughout 2014, groundbreaking increased by 8.8 percent to 1.01 million units, the highest since 2007, but still extraordinarily weak.

Single-family housing starts in 2014 were also the highest in seven years. In December, groundbreaking on single-family projects in the West hit a seven-year high, while starts in the Midwest were the highest since December 2011.

Groundbreaking for multi-family homes, the most volatile segment of the housing market, fell 0.8 percent to a 361,000-unit pace. Overall permits for future home construction fell 1.9 percent to a 1.03 million-unit pace fueled by an 11.8 percent plummeting of the multi-family segment.

Single-family permits rose 4.5 percent to their highest level since January 2008, with permits in the populous South hitting their highest level since February 2008.

The Commerce Department said Wednesday single-family housing

 

state-of-the-union-2015-ap

President Obama gave his sixth State of the Union speech on January 20, 2015. (Photo: AP)

President Obama sure is consistent. His State of the Union address sounded like his other speeches: What I’ve done is great! America is in a much better position. We’ve created a manufacturing sector that’s adding jobs. More oil is produced at home. I cut deficits in half!

Give me a break. The deficit is lower now not because of any prudence on Obama’s part but merely because the $800 billion stimulus spending blowout didn’t continue. All the president does is increase spending: free community college, free Obamaphones, free birth control, etc. Yes, our annual deficit is lower, but it’s still $488 billion! Our $18 trillion national debt increases by $3 million every minute!

Yes, more oil is produced at home, but that’s in spite of the administration. Oil production is down on public land.

Yes, the manufacturing sector added jobs, but that’s mostly because of cheaper natural gas created by fracking, which Obama’s cronies opposed. Also, America is finally recovering from recession. Obama’s policies probably slowed that recovery.

Does the President delude himself when he takes credit for oil production, lower deficits, etc.? Or does he mislead on purpose? I don’t know.

More recently he bragged, “I created the lowest unemployment rate in years.” He created it? He must know it’s “low” only compared to the 10 percent reached during the recession — and because millions have simply given up looking for work. This recovery is the slowest in 70 years.

If Obama gave the State of the Union address I’d like to hear, he’d say this:

I heard you, voters, in November when you took control of the Senate away from my party. I get it. I overreached. I was arrogant. I imposed Obamacare on a nation that was deeply divided about it. I ruled through executive orders instead of legislation. I threw money at “green” nonsense. I’ll give up the payments to the “green energy” industry if the Republicans stop coddling defense contractors.

I’ve been in government for years now. I know how badly it works. The last thing I should try to do is make it bigger. In fact, with Republicans now in control of Congress, it’s time I worked with them to shrink government. If we shrink it, we might even dig our way out of the debt hole we’re in. Heck, if we just slow the growth of government to 2 percent a year, we’d be in better shape.

But I didn’t even try to accomplish that. I pretended taxing the rich would solve our financial problems. But there aren’t enough rich people to tax. I got drunk on the idea of promising voters “free” stuff such as low down-payment mortgages and guaranteed paid family leave. I told them that all good things come from government. That’s nonsense.

We should put an end to all bailouts. Businesses that screw up should accept the consequences, just like ordinary people who spend recklessly. Main Street should never again be forced to rescue Wall Street.

Instead of expanding government control of health care, we should phase it out. That includes Medicare. I know Medicare is popular, but it is unsustainable. Let current retirees receive their benefits as promised, but younger people should pay for their own health care.

People criticize the economic distortion created by welfare, but Medicare and Social Security are almost as bad. Both redistribute money away from the young and struggling toward those of us who have had decades to invest and save up.

To make these challenges a little easier to deal with, let’s make America richer by abolishing most regulations. They strangle opportunity.

The more I think about it, the more Congress and I could transform America for the better just by getting out of America’s way. The state of our union will be truly strong if the state — by which I mean government — is strictly limited.

John Stossel is host of “Stossel” on Fox News and author of “No They Can’t! Why Government Fails, but Individuals Succeed.”

John Stossel: President Obama sure is consistent.

boston-brigham-womens-hospital-shooting

A police officer cordons off streets around the Shapiro Center with yellow police tape shortly before noon. (DAVID L. RYAN/GLOBE STAFF)

A cardiologist at the Boston Brigham and Women’s hospital is in critical condition Tuesday after he was shot twice by a gunman, who police say is now dead from a self-inflicted gunshot wound.

Police say he shot himself in a nearby exam room, but would not release the identities of the gunman or the victim. The victim was rushed to the emergency room where he was treated for his life-threatening injuries.

Investigators found the body of a deceased man who matched the suspect’s description in an exam room in the hospital’s Carl J. and Ruth Shapiro Center. The suspect had sustained a self-inflicted gunshot wound and a gun was found next to the body.

The Boston Police Department are taking the lead in the investigation, with the Massachusetts State Police saying they were assisting only. Boston PD says the situation is under control, and at a press conference suggested the suspect targeted this particular doctor, but offered no reason.

“We know he came into the hospital on the second floor, asking for this particular doctor,” Police Commissioner William B. Evans said. “There was a particular reason he targeted this doctor. Why? We don’t know why. Right now we’re looking into the possible motive of it.”

The police and hospital are crediting the rapid police and staff response for limiting further damage and potentially saving the doctor’s life, though he remains in critical condition.

“I am extremely proud of the way our staff responded,’’ said hospital president Dr. Elizabeth Nabel, adding that the “calm, rapid response” by staff stabilized the victim and quickly transported him to the emergency room.

“We had a very tragic situation here this morning,’’ Nabel said. “I want to thank the Boston Police Department for doing an extraordinary job of responding rapidly.”

A doctor at the Boston Brigham and

Even though U.S. homebuilder sentiment did inch up in the month of April, sparse credit conditions for buyers and a lack of supply for building properties and labor continue to drag down industry fundamental.

(Photo: REUTERS)

The National Association of Home Builders’ gauge of homebuilder sentiment slid to 57 in January from 58 the month prior. The gauge was expected to hold steady for the month.

The NAHB said on Tuesday U.S. homebuilder sentiment fell slightly in January, while the NAHB/Wells Fargo Housing Market index fell to 57 from a revised 58 in December. Despite housing data repeatedly missing the mark, the group remained positive in a statement.

“January’s HMI reading is in line with our forecast as we head into the new year,” said NAHB Chief Economist David Crowe. “Steady economic growth, rising consumer confidence and a growing labor market will help the housing market continue to move forward in 2015.”

Economists polled by Reuters had predicted the index would show a reading of 58. Readings above 50 mean more builders view market conditions as favorable than poor. The index has not been below 50 since June 2014.

“After seven months above the key 50 benchmark, builder sentiment is reflecting the gradual improvement that is occurring in many markets throughout the nation,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware.

The single-family home sales component was flat at 62. The gauge of single-family sales expectations for the next six months fell to 60 from 64, while the index of prospective buyer traffic fell to 44 from 46.

The three-month moving averages for regional HMI scores found the West increased by four points to 66, the Midwest clocked in a 3-point gain to 57, and the Northeast was up 2 points to 47. The South dropped by 2 points to 58.

The National Association of Home Builders’ gauge

isis-japanese-hostages

In the image taken from the video released by the terror army ISIS (Islamic State), Jihad John threatens to kill two Japanese hostages if a $200 million ransom doesn’t get paid within 72 hours.

A video purportedly released by ISIS has threatened to execute two Japanese hostages unless their government pays a $200 million ransom within 72 hours. The threat appears to be a retaliation for a Japanese pledge of nonmilitary assistance to countries fighting the terrorist army, which was announced by Japanese Prime Minister Shinzo Abe on Saturday during a visit to Cairo.

The two men, freelance journalist Kenji Goto Jogo and Haruna Yukawa, the chief executive of a private security firm, were shown kneeling in orange jumpsuits on either side of a knife-wielding masked militant known as “Jihad John.” He spoke first directly to Prime Minister Abe.

“You have proudly donated $100 million to kill our women and children – to destroy the homes of the Muslims. So the life of this (points knife at Kenji Goto Jogo) Japanese citizen will cost you $100 million,” he said in English with a British accent. “And in an attempt to stop the expansion of the Islamic State, you also donated another $100 million to train the mujahideen against the mujahideen. And so the life of this (points knife at Haruna Yukawa) Japanese citizen will cost you another $100 million.”

Then, he turned his attention to the Japanese people.

“And to the Japanese public, just as how your government has made the foolish decision to pay 200 million to fight the Islamic State, you now have 72 hours to pressure your government in making a wise decision by paying the 200 million to save the lives of your citizens. Otherwise this knife will become your nightmare.”

A spokesman for the Japanese government said that there would be “no change to our policy of contributing to the international community’s fight against terrorism.” The Japanese pledge included food and medicine for Iraqi and Syrian refugees.

“Using human lives as a shield to make threats is an unforgivable terrorist act, and I am extremely indignant,” said Prime Minister Abe. “I strongly demand that they be released unharmed immediately.

“The international community will not give in to terrorism and we have to make sure that we work together.”

The latest video and developments come as 13 teenage boys in the Iraqi city of Mosul were killed by ISIS for watching the Asian Cup soccer match between Iraq and Jordan, which under the terror group is an offense punishable by death.

Before being shot to death by machine guns, the terrorists reportedly announced the boys’ “crime” of breaking religious laws by watching sports over a loud speaker.

About the Hostages

Haruna Yukawa, a 42-year-old widower, reportedly has a history of attempted suicide and even self-mutilation. His mental state took a turn for the worst after his military goods business went bankrupt and his wife died of cancer.

He even considered cutting off his genitals, deciding that he would instead “live as a woman and leave the rest to destiny,” according to The Daily Mail.

He travelled to Iraq and Syria last year after telling friends and family that he thought it represented a last chance to turn his life around.

Kenji Goto Jogo, a freelance journalist, born in 1967, established a video production company known as Independent Press in Tokyo back. They have been shooting video documentaries on the Middle East and other regions to Japanese television networks since 1996, including public broadcaster NHK.

Just after telling his family in October that he was set to return to Japan, they lost contact with him. Goto met Yukawa last year and helped him travel to Iraq in June, according to a Reuters report in August.

In early November, his wife began to receive e-mails demanding a ransom totaling roughly one billion yen ($8.5 million) from a person claiming to be an Islamic State group member. The e-mailed threats were later confirmed to have come from a sender implicated in the killing of U.S. journalist Foley, Fuji TV said.

A video purportedly released by ISIS has

johnson-and-johnson-baby-powder

Johnson & Johnson (NYSE:JNJ) baby powder product. (Photo: Reuters)

Johnson & Johnson (NYSE:JNJ) reported fourth-quarter sales fell 0.6 percent, as slower growth in domestic pharmaceutical revenue wasn’t enough to counter weak international revenue.

The health-care giant’s shares were down nearly 3 percent to in recent pre-market trading. However, per-share earnings — excluding one-time charges — actually beat analysts’ expectations. Analysts polled by Thomson Reuters recently expected per-share profit of $6.13.

For 2015, the company forecast adjusted per-share earnings between $6.12 and $6.27.

The New Brunswick, N.J., company’s sales have been fueled by new or newer drugs, including the diabetes drug Invokana, the blood-thinner Xarelto and the psoriasis treatment Stelara. With the revenue, Johnson & Johnson is attempting to revive its consumer and medical-devices businesses.

J&J’s hepatitis C drug, Olysio, also had been contributing to the growth. However, it was expected to tamper down due to growing competition. Olysio sales reached $256 million in the U.S. during last quarter, which was far above analysts expectations, yet still below the $671 million in the 3Q.

Johnson & Johnson (NYSE:JNJ) reported fourth-quarter sales

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