Increasingly more low wage employees are those with a college education as they are unable to leverage their diploma credentials to get a better paying job, as the only ones hiring are those seeking minimum-paid workers. This means that the share of college grads working minimum wage jobs is now an all time high; jobs which barely cover the cost of living, let along covering interest expense on student loans.
Esquire Magazine recently conducted a poll of 4 millennials at 4 different income levels and the one unifying theme in the responses seemed to be that millennials are fairly self-assured and optimistic about their future despite the overwhelming mountain of economic evidence that suggests they're totally screwed. Seems that millennials are maintaining their "safe spaces" beyond their college years...
American net worth just hit a record high $88 trillion, a number taken by the fawning media is evidence of how successful Obama's policies have been. However, when one looks beneath the surface, a "devastating" picture emerges: US inequality like no one has seen it before.
For those who have already lost their job, their home or the secure structure that once defined their life, the collapse is already here. And those slowly bleeding out clearly see the collapse just around the corner.
while blowing out unsecured funding rates may no longer be a flashing red flag, a question has emerged as a lot of debt references Libor, debt ranging from household debt to non-financial business debt: some $28 trillion of it, to be specific, and just in the US. The question is just how concerned will the borrowers of said debt be once they get their next due balance.
The Fed has only raised rates once (+0.25%) in this so-called tightening cycle but the short-term rate where the rubber meets the road, Libor, has tightened by nearly 1% (1yr Libor), and it has risen more than 30 basis points in the last 5 weeks! This has put 4 times the Fed’s tightening pressure on all types of US Dollar borrowers around the world; from adjustable mortgages to student loans to financing for ships. This should be a major concern for the Fed.
Just in case it wasn't already bad enough to be a recent Millennial college graduate in the US with tens of thousands in student debt, it turns out there is a special circle in student loan hell reserved for those who never manage to graduate. Because as Bloomberg reports, when it comes to collecting on student loans, the U.S. Department of Education treats college dropouts the same as Ivy League graduates: They just want the money back.
Needless to say, the above outlandish graph does not capture capitalism at work. Nor did the speculators who surfed upon this $45 trillion bubble harvest their monumental windfalls owing to investment genius. Instead, it is the perverted fruit of Bubble Finance, and there is no better illustration of this bubble surfer syndrome than the sainted Warren Buffett.
According to the New York Federal Reserve, 14% of the U.S. population lives in households that have “negative” wealth. In other words, these are households that have more debts piled up than assets. But it is the composition of debt that is also very telling... Negative wealth households have a whopping 47% of debt in student loans, while positive houses have just 6%.
For those who want to join the fastest growing segment of the workforce (by educational level, or rather lack thereof), while having saved themselves the hassle of not only years of college, but also highschool, and certainly a lifetime of repaying student loans, here is what you have to look forward to: according to the BLS, these are the 35 highest paying occupations that require no formal educational attainment.
Flanked by sleepy billionaire-for-the-masses Warren Buffett, Hillary Clinton was cheered by a crowd of mooing followers in Omaha as she angrily exclaimed "...we are going to raise taxes on the middle class!”
July was a bumper month for US consumer "charging it", with both credit card experiencing its second biggest monthly increase since the crisis, and with auto and student loans hitting new all time highs.