Student loans: the next financial crisis

The student loan debt perfect storm

Wow, students loans in this country top almost 1 trillion dollars (14 billion short). To put this into context, Americans have $849.8 billion in credit card debt. Yes, we have more student debt in this country than CC debt.

Unlike CC debt, student load debt cannot be wiped out by bankruptcy. If student loan rates double, you are looking at this new financial crisis: student loan debt and the next shoe to drop.

 

Yet another case of kicking the can down the road.

It is the same thing as what's happening to social security and all those other "60's" ideas....never funded properly, a growing crisis that governments after government have thrown money at to make it go away, not wanting to make the really tough decisions on their watch.

If you combine the credit card debt and student loan debt you already have a crisis and its likely the students carrying the loans are the ones with the highest cc debt.
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Yep. And meanwhile college is pushed to every single student who enters high school, regardless of their individual aptitude. Hundreds of thousands of "blue collar" jobs go unfilled because of the social stigma that exists against them, mainly because of the left's Academia attitude against hard working "uneducated" people (white people, minorities get a pass on this attitude).

 

Leave it to bankers, to enslave generations....

 

Yet another creation of socialist central planning.

 

Got that right

 

Which....just like with CRA / Fannie Freddie / "National Homeownership Strategy"....or any of the other coercive "fairness", "equality" and "social justice" progressive social engineering constructs.....will come crashing to the ground, (*)(*)(*)(*) up the economy, drive up deficits / the national debt, and ultimately require "fortunate" taxpayers to "bail out"

Centrally planned state collectivism has murdered America....just as leftists planned.

 

And they'll blame it on the market, like they always do.

 

Of course.....totalitarian, control freak state collectivists will always find ways to blame their disasters on individual rights, liberty and economic freedom...or, more specifically, the last defenders of such.

 

Most of the financing comes directly from Federal tax dollars, so it's not the banks who are at risk if large amounts of people start defaulting, it's the American taxpayer, and he/she will NOT be getting a bailout from Bush OR Obama.

 

Lol, how would this lead to a financial crisis?

 

As part of ongoing trend in unsustainable borrowing and spending by the feds.

 

You didn't answer the question. How would student loan debt cause a financial crisis?

 

Student debt could cause financial crisis

Educate yourself.

 

Student loans were a stupid idea to begin with. The commodity, education, can not be taken away, and its benefit outweighs any potential punishment short of debtor's prisons making a comeback...

 

Lol, explain to me in your own words how student loan debt would cause a financial crisis.

 

You can lead a horse to water, but you cant make him drink.

 

That's what I thought. You have no clue.

 

There is nothing to be done if people simply stop paying the debt. In a tight economy there are priorities. Paying the student loans is far lower than rent/mortgage or car note, or what have you. When it came to housing, a home can be foreclosed, a real commodity could change hands. That cannot happen with education. People will sooner or later realize that the penalties for not paying student loans aren't that high, and the benefit of the education isn't going to become the bank's...

 

Ok, so students stop paying their debt. How would that create a financial crisis?

 

Unsustainable spending and borrowing by the feds could precipitate a "financial crisis" by creating one or more "asset bubbles" in the economy, asset bubbles that necessitate acute corrections via liquidation (realignment, reorganization, revaluation, etc.). The underlying asset that is being inflated by this unsustainable spending and borrowing is the US Dollar, and since it is a centralized FIAT money, its inflation and manipulation touches every facet of the economy, and its continued devaluation and lack of solid backing will eventually render the Federal financial system inert. It's the same thing that happens to other idiot socialists who centrally plan prices.

 

Seriously? Wow...

 

Yes, seriously... explain how students not paying their debt would cause a financial crisis.

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How can education become an "asset bubble". Can I sell my degree on the open market or something that I'm not aware of?

 

It would depend. If there is speculation and trading on this student loan debt by financial institutions, then default could cause a "crisis" among certain firms and their counter-parties, but a default in and of itself would not precipitate a financial crisis because the financing is provided by Federal tax dollars which have already been spent. But as part of a larger trend in unsustainable spending and borrowing, it could serve to cause a financial crisis tied to the dollar.

I didn't say it could. Learn to read, kid.

Your degree is obviously worthless, so no...

 

At least you make some sense here. First time in a while. So student loan debt can't really "cause" the financial crisis but the logic behind your "unsustainable" spending and borrowing can.

You are right here also. It is worthless to you. To me, it's done wonders. But that's another story.