Student Loan Debt Will Prevent Future Generations From Buying Houses
invite response
2018 Apr 2, 2:52pm 3,114 views 8 comments
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1
HeadSet
2018 Apr 2, 3:24pm
HeadSet
2018 Apr 2, 3:24pm
Student Loan Debt Will Prevent Future Generations From Buying Houses
I don't know about that, Pat.
Scenario: Senator Mark Warner (D-VA) gets the Democrat Nomination for president in 2020. In order to beat Trump, Warner uses the angle of "student loan forgiveness" as a campaign platform. The combination of the student debtor and strategic illegal alien votes give Warner just enough to squeak by Trump. Warner issues a combination of loan forgiveness and loan deferrals (subtracted from debtor's Social Security benefits) to eliminate most student debt nationwide. With student loans erased, the mob of proven irresponsible borrowers line up to buy their overpriced "cribs" with innovative 45 year loans. "My 45 year balloon mortgage has made my payments truly affordable" said SF resident Patricia Kay.
Sounds far fetched? True, but right after Obama gave that July 2004 Keynote address, anyone who said "This Obama guy will beat Hillary Clinton and the rest to be the Democrat nominee and win the Presidency" would have been laughed at. Likely even derided by Nate Silver.
Although I think Mark Warner has a serious shot at the Democrat nomination, I know it is preposterous that he would beat Trump.
I don't know about that, Pat.
Scenario: Senator Mark Warner (D-VA) gets the Democrat Nomination for president in 2020. In order to beat Trump, Warner uses the angle of "student loan forgiveness" as a campaign platform. The combination of the student debtor and strategic illegal alien votes give Warner just enough to squeak by Trump. Warner issues a combination of loan forgiveness and loan deferrals (subtracted from debtor's Social Security benefits) to eliminate most student debt nationwide. With student loans erased, the mob of proven irresponsible borrowers line up to buy their overpriced "cribs" with innovative 45 year loans. "My 45 year balloon mortgage has made my payments truly affordable" said SF resident Patricia Kay.
Sounds far fetched? True, but right after Obama gave that July 2004 Keynote address, anyone who said "This Obama guy will beat Hillary Clinton and the rest to be the Democrat nominee and win the Presidency" would have been laughed at. Likely even derided by Nate Silver.
Although I think Mark Warner has a serious shot at the Democrat nomination, I know it is preposterous that he would beat Trump.
2
MAGA
2018 Apr 2, 3:54pm
MAGA
2018 Apr 2, 3:54pm
I drive a 2016 Honda Accord LX and owe.....nothing. Paid cash for it. New.
www.youtube.com/embed/f5bcQ5OK9Jg
www.youtube.com/embed/f5bcQ5OK9Jg
3
Tenpoundbass
2018 Apr 2, 4:20pm
Tenpoundbass
2018 Apr 2, 4:20pm
I got one daughter that chose Computer Science and got full scholarship.
Another daughter that wants to work and pay for a few semesters a year until she figures out a Major.
Parents putting pressure on kids to go to big universities when they don't have a clue what they want to do is driving all that Student debt.
Another daughter that wants to work and pay for a few semesters a year until she figures out a Major.
Parents putting pressure on kids to go to big universities when they don't have a clue what they want to do is driving all that Student debt.
5
Heraclitusstudent
2018 Apr 2, 4:46pm
Heraclitusstudent
2018 Apr 2, 4:46pm
More than the level of debt - and the impact on housing - what's remarkable is the trajectory: it needs to continue growing.
We need more debt otherwise people wouldn't be able to buy crap. The end demand would collapse, and we would fall in a deflationary depression.
Bush used housing to create debt.
Obama didn't have housing so student debt it was. Plus a lot of public debt.
The zeal with which our elites persist on this road to hell is astounding.
Establishment economists explain us that a trade deficit is good because, precisely, we are "not paying" for the crap we are getting. Though we are paying by being buried in debt and putting the next gen on the debt treadmill for life.
It's obviously insane. But this passes for an economic policy and some people do profit. So?
We need more debt otherwise people wouldn't be able to buy crap. The end demand would collapse, and we would fall in a deflationary depression.
Bush used housing to create debt.
Obama didn't have housing so student debt it was. Plus a lot of public debt.
The zeal with which our elites persist on this road to hell is astounding.
Establishment economists explain us that a trade deficit is good because, precisely, we are "not paying" for the crap we are getting. Though we are paying by being buried in debt and putting the next gen on the debt treadmill for life.
It's obviously insane. But this passes for an economic policy and some people do profit. So?
6
MrMagic
2018 Apr 2, 6:26pm
MrMagic
2018 Apr 2, 6:26pm
Tenpoundbass says
Bingo!!!
You win.
Case in point, my sister-in-law is "sending" my youngest nephew to a college in Connecticut, to get a business degree, the tuition is $60K a year, but they're going to give him a $10K scholarship, so all is good. He already did two years at a community college. But apparently, a business degree from Rutgers just isn't good enough.
So, $50K a year for a business degree that he could get from a state school for less than half. If he commutes to the state school and doesn't live there, it would be another half of that. And to top it off, she's going to have to co-sign for his loan, so when he defaults, like over 40% of kids will do, she'll be stuck with the tab.
Yep, the parents are the stupid ones in this equation.
Parents putting pressure on kids to go to big universities when they don't have a clue what they want to do is driving all that Student debt.
Bingo!!!
You win.
Case in point, my sister-in-law is "sending" my youngest nephew to a college in Connecticut, to get a business degree, the tuition is $60K a year, but they're going to give him a $10K scholarship, so all is good. He already did two years at a community college. But apparently, a business degree from Rutgers just isn't good enough.
So, $50K a year for a business degree that he could get from a state school for less than half. If he commutes to the state school and doesn't live there, it would be another half of that. And to top it off, she's going to have to co-sign for his loan, so when he defaults, like over 40% of kids will do, she'll be stuck with the tab.
Yep, the parents are the stupid ones in this equation.
7
Patrick
2018 Apr 2, 6:33pm
Patrick
2018 Apr 2, 6:33pm
Heraclitusstudent says
It all makes sense when you realize that most of the purchasing power of our masses was transferred to China along with our factories.
Our own masses can't buy anything now, so we need ever more debt to make up for that.
But if our masses had decent wages (from repatriation of jobs and expulsion of illegal slave labor) then we would not need debt just to keep demand from collapsing.
More than the level of debt - and the impact on housing - what's remarkable is the trajectory: it needs to continue growing.
We need more debt otherwise people wouldn't be able to buy crap. The end demand would collapse, and we would fall in a deflationary depression.
It all makes sense when you realize that most of the purchasing power of our masses was transferred to China along with our factories.
Our own masses can't buy anything now, so we need ever more debt to make up for that.
But if our masses had decent wages (from repatriation of jobs and expulsion of illegal slave labor) then we would not need debt just to keep demand from collapsing.
https://graphics.wsj.com/how-the-world-has-changed-since-2008-financial-crisis/?mod=patrick.net