Saturday, August 08, 2015

The Ugly Truth About Rubio’s Financial Woes

And He Wants to Control America’s Finances

K.J. McElrath
Ring of Fire
August 8, 2015

Those who struggle with the lifetime burden of student loan debt and have seen stories about Marco Rubio’s “fishing boat” (actually a high-powered luxury speed boat) are understandably enraged. The rest of us have those student loans hanging around our necks to the grave and beyond. As a result, many of us put off buying homes and automobiles, delay raising families, work overtime, work two jobs, and forfeit vacations. Meanwhile, this a**hole goes off and spends $80,000 on a speedboat, after he announces to the public that he understands debt as he is paying off his $100,000 student loan.

On the surface, it looks pretty bad…but there is more to the story.

Back at the turn of the century, when young Rubio was first elected, he was carrying $150,000 in student loans as well as $30,000 in “assorted credit and retail debt.” At the time, he was making $90,000 a year. Consider that the annual median household income in this country is just over $50,000, while two-thirds of American families bring in less than $42,000. Even with debts like Rubio’s, $90,000 should have been more than enough for a family of three to double down on payments and still be able to live comfortably, if not lavishly.

Apparently, the Rubios did live lavishly. In his memoirs, Rubio admitted that his family’s monthly expenses had become so overwhelming that they had to sell one of their cars and move in with Mrs. Rubio’s family. This, on an income of $90,000, and somehow he still managed to qualify for a mortgage in order to buy a $135,000 home in 2005!

His financial struggles continued for years, despite the handsome six-figure income he received as a Congressman (currently, $174,000 a year, plus a benefit package that most working stiffs can only dream about – which legislators get for life). The Rubio family still could barely make ends meet. In addition to the school loans and consumer debt, the value of the home Rubio purchased fell by over 13%. He was struggling to keep up payments on the first mortgage as well as a home equity loan. The Rubios were definitely “under water,” and nearly lost the home to foreclosure after missing five payments. Rubio wound up cashing out a $68,000 retirement fund, more than 35% of which went to the United States Treasury. They still weren’t making it. Things were looking mighty grim…then, one day…a miracle!

(More here.)

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