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Obama Unveils Student Loan Debt Bubble Bailout
"The challenges of managing student loan debt can lead some borrowers to fall behind on their loan payments and in some cases even default on their debt obligation," notes the always astute White House... and so it's time to do something about that... by bailing the bad debtors out with US taxpayers money. As we have been vociferously warning, not only has the student loan debt bubble expanded massively (as the easiest credit substitute for real-world working and unemployment) but delinquencies on the 'easily available' credit is soaring with "consequences such as a damaged credit rating, losing their tax refund, or garnished wages." Consequences, as we have been taught now, are not acceptable for this administration and so President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans.
As we noted previously, the amount of heavily delinquent student loans has just hit a fresh record high of $124.3 billion, up from $121.5 billion in the prior quarter.
So: when does the Fed finally admit i) there is a student loan problem and ii) the only way to solve said problem is to promptly monetize it?
or iii) A Federal Government bailout...
President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans, a White House official said on Sunday.
The president will sign an order directing the secretary of education to ensure that more students who borrowed federal direct loans be allowed to cap their loan payments at 10% of their monthly incomes, the official said.
Federal law currently allows most students to do this already. The president's order will extend this ability to students who borrowed before October 2007 or those who have not borrowed since October 2011, the official said.
The administration says this action will help up to 5 million more borrowers, although it will not be available until December 2015.
More broadly, the administration is looking for ways to stimulate faster economic growth without relying on legislation...
Preventing student loan repayment problems fits with that goal because officials say it will help young workers avoid credit blemishes that will hurt them down the road.
"Many student loan borrowers are working and trying to responsibly make their monthly payments, but are nonetheless struggling with burdensome debt," the White House official said.
"The challenges of managing student loan debt can lead some borrowers to fall behind on their loan payments and in some cases even default on their debt obligation, with such consequences as a damaged credit rating, losing their tax refund, or garnished wages," the White House official said.
Perhaps its time to reassess whether taking on massive indentedness for a degree that leaves you earning minimum wage anyway is a sensible idea.
Now we are sure there will be no unintended consequences from this law... no sudden spike in non-payment, no tumble in loan bundle values, and no collateral chain follow through...
Oh wait...
The number of borrowers in the income-based repayment programs climbed 24% from January through March to 1.63 million, the Education Department recently said.
The amount of debt covered by the programs grew 22% during that period to $88 billion—nearly one-tenth of all outstanding federal student debt.
WTF!
Welcome to the real world, debt serfs...
President Obama said...
- *OBAMA: RISING TUITION COSTS LEAVE FAMILIES `FEELING TRAPPED'
And we said...
OBAMA: RISING TUITION COSTS LEAVE FAMILIES `FEELING TRAPPED' He still doesnt get that costs are rising due to easy credit
— zerohedge (@zerohedge) June 9, 2014
And then President Obama said...
- *OBAMA SAYS HIGHER EDUCATION `SUREST PATH' TO MIDDLE CLASS
- *OBAMA SAYS HIGHER EDUCATION IS `SMART INVESTMENT'
And we said...
Net Worth Of College Grads With Student Debt Is 20% Less Than High School Grads With No Debt http://t.co/6zAhdCVokm pic.twitter.com/2sTYZXrPfR
— zerohedge (@zerohedge) June 9, 2014
It's just insane that the administration can make up so much crap - not have a clue how much it will cost.. and the manstream media just glosses over it .. a ha just another bailout for those who over-extended themselves.
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This. Of COURSE this. How did I not realize that this is the next step? By the time they're done with "penalties" and "fees", the bill will be $120K. You absolutely NAILED it.
"Resistance is futile."
This is all just about keeping defaulted loans off of somebody's books. If you can afford to pay $1 a month it is still a "good" loan, and nobody takes a hit for it.
"A rolling loan gathers no loss". Standard financier wisdom.
I think there is a marriage of this problem and Wall St "high finance".
Problem solved! FTW.
Student Loan Derivatives, leverage those bitchez up 40x, and collateralize them. Then create CDS on that. MBS Clusterfuk 2.0. What could go wrong? Any problems, see Tarp 2.0. This shit isn't even hard anymore.
Have we met? You sound like a guy I had a few shots of Jagermeister with at a NY poolhall before barfing all over the place (me). Those were the days. Someone must have overheard the convo about the leverage and collateralization because a few years after and it became a big deal. I was out then.
So bankers will collect interest for 20 years and when Johnny doesn't pay the loan back the tax payer will pay the bankers the principal. Zero didn't even give us the courtesy of a reach around.
Just in time for elections too, zero to hero for students everywhere. We fucking live in farceworld, the infinite rerun. As neither a borrower nor creditor, I can't wait to pay for this shit.
Exactly.
Here ya go, you dear poor students. I'm here to help you!!!!
By handing risk free profits to all these banks and then fucking your grandchildren. But that part is all in fine print.
Also, don't forget that there will be all kinds of creative ways invented for hiding income. i.e... get a math PHD.. then a 400k a year job writing skimming algorythms and ask to be paid in 4 installments of ferrari's you sell on Ebay.
This won't do shit for students. Its basically a steam valve to allow the scam to keep operating.
So what is it about TBTF that you don't understand? They are the superior life form here. We are secondary and therefore subservient to the financial elite.
The politicians are the mouth of the economic body while the government dependents are the stomach. The rest of us (working people) are the bowels and asshole, left to do the dirty work and as we would figure that we get the shit end of everything.
No border security..more illegals coming in...now you dont have to pay your student loans back...watch that number jump to the trillions as its free money more or less..who needs snap when you can get a student loan
Just think.
When it's time to retire, it's time to head back to school.
Collect SS and take out loans to supplement your income tax free.
It's a debt you know you'll never be able to repay in what's left of your lifetime.
#winning
Hey; that's not a bad idea; I could use another degree; and those college girls are pretty easy on the eye. have to look into that.
And they would probably love hooking up with your wallet and pension plan.
what is it that congress is needed for again?
Appearances.
They represent we the people.....LOLOLOLOLOLOLOLOLOLOLOLOLOLOL.......
Fuck I think I just pulled something laughing so hard.
phil mcckrackin?
Nope. Dick Tuggins.
Doesn't matter to these f**ks that this bailout, along with the others, will increase the government debt, raise our taxes and take the rest of us down.
I read earlier today that the executive order covers only those in public sector jobs. It's another step in the bifurcation of work ... government employees live in a whole different world than private sector employees, with a different ethos, rules, and incentives. We have blue collar, white collar, pink collar, now we might as well have a different collar color for government employees because all of this is going to cause another divide where groups of people experience work differently.
in Soviet America the term you're looking for is Apparatschicks
they get better schools, better health care, better meats, fruits and vegetables and better protection
get used to it for a short while until the system collapses just like the predecessor
here's what you do to survive mentally and physically
you take from the apparatschicks, you take from the state and you feed your family and friends first and only the best
eventually apparatschicks will come begging with their worthless Dollars to get your attention
worthless Dollars is all they got
What difference, at this point, does it make?
Seriously, does he really have to have a posse of every freakin minority standing behind him?
Yes, it's the propaganda du jour.
Hitler had only blond men, blond braided women and blond children in pictures with him.
Isn't it wonderful how fucking progressive we are?
This makes it the perfect time to apply for a student loan. Is there an age limit?
He nailed a latino/lesbian combo on his bottom right. Well played.
How about an executive order that anyone enrolled in college, has all their expenses (food, clothing, drugs, alcohol) covered at the expense of the taxpayers? I'd be more than willing to quit my job, and enroll in college, stay at their dorms, and be the creepy old guy hitting on the freshman girls.
What's stopping you?
Planning on living to a hundred and five?
Supplement your Social Security income now with student loans.
If you're lucky you won't live long enough to be required to pay any of it back.
By the way, English Lit classes are full of hot chicks. but stay away from the Women's Studies, nothin but lesbians.
Nah they're not much better. Amanda Marcotte majored in English lit, IIRC. Now, psychology def has more than its share of hotties.
That's cause hot bitches are crazy bitches, and they're trying to figure out what's wrong with themselves.
Correction -- They are NOT trying to figure themselves out, they are simply trying to 'empoer' the Rationalization Hamster in their minds to work even harder, logic be DAMNED!
cradle to grave debt, nice plan. this is gonna turn out just fine.
If you are going to make the trains run on time you need to be able to control people, and there is no better control than through dependency. If you want your gruel and biscuit, you best do as you're told.
And get back in line, damn it!
Did they really think this out, my god if I had student debt you can bet your ass I would take less money if it were off the books. You think Greece has a big underground economy? Watch out for the USSA ... OPA!
They ought to get GS to bundle the loans and sell them just like subprime motrgages.
That will work.
Thats a great idea! And parents are just dying for high yeild returns to offset their college tuition so it works out perfectly. And the best part, when it all blows to hell it only hurts those rich folks who thought they had investments. Not exactly a multi generational plan, but who the fucks cares about a future, right?
They could structure the bundles based on GP, degrees and chosen fields.
Humanities and art degrees being the most risky, highest default.
bail out the students, bail in their parents, and no new taxes
What do you mean, increase revenue to cover increased expenses? That's crazy talk.
"You are about to enter another dimension, a dimension not only of sight and sound but of mind. A journey into a wondrous land of imagination. Next stop, the Twilight Zone! "
half white douche bag; let's see how you paid for college fool!
Ah, now that's an interesting point. if you actually find out the answer to that question; you will disappear. so don't look too hard. hint; it was all a plot. "You mean rich old white men actually sit around in smoke filled rooms and make plans?" Yep. they sure do.
According to the World Bank data I'm looking at right now, the U.S. spends about the same amount of public money on education as the world average for high-income countries (5.4% of GDP vs. 5.6 % average), yet our out of pocket cost is much worse. The system simply spends too much, spends it on too many things other than what's really required to learn, and spends it on people who might be better off not going. It's like the sick-care system ... the solution is not to give it more money, because it has enough. The only solution is to do some thinking about focusing its priorities.
Re: The only solution is to do some thinking about focusing its priorities.
Sure, in a society run by logic... In the US, however, we've had 60+ years of crony-socialism/capitalism. All the smart-n-savvy people are in on some Big-Gov scams now. There's no going back. Nobody is going to allow their Big-Gov scam to be cut when they see other smart-n-savvy people getting rich on another one.
Which one get's cut first and how do you "logically" explain the "reasoning" to the smart-n-savvy people losing-out: Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState – and (now) Big-Space.
I charge double for any Big.Gov salaried customer and then they get the best cuts and freshest produce and they're first in line. Depends on how long their money is worth it before I may start asking for metals in exchange for products.
Have you seen the rise in food prices lately? Looking at the prices for hogs, cattle, chicken, grains, hay and so on I guarantee you that prices will go much much higher from here.
That's what the Soviets did and it worked for them so why not here?
Those nice new buildings won't build and heat/cool themselves.....
Awesome. Load up on debt kids, because you never have to pay it back. (never mind the bloated administrations at your average state, tax-payer funded, college)
(this should turn out well)
B-b-but it's worth every penny, because every child deserves a college education! And they'll all earn more money and pay it back and then some! Check your privilege!
I'm waiting for some asshat to use that phrase, non-sarcastically, in my presence, so I can let them gargle in public on my privilege.
Just for the record... Not all student loans are from the Fed, there are private student loans too.
Not anymore... you'd be a complete moron to take a private student loans.
The government ones forgive and transfer to tax payers if you haven't paid it off in 20 years. (10 if you get a government job)
So go ahead... get a PHD in music and rack up 300k in loans. Just get a government secratary job for 10 years afterwards... debt gone. Now your grand children have to pay it.
Yes, but you have to actually pay those back.
"The last idea is spent."
The effect of all this debt (yes, through debt monetization all you are doing is creating more debt Mr President...not more demand...in fact LESS demand!!!!)
So we get "the internet of things" as Americans are forced to pay debts for schools that no longer have students, facilities or even teachers!
Basically this is a consequence of being a phucking pussy in my book.
The only reason we have all this largesse to begin with is because FDR was an ass kickin name takin son of a bitch.
And so was everyone else around him.
A million bucks for the taking of Moscow? You build a million man Armyand guess what...your voting bloc will say "yes."
Nay, veerily..."we respond to Bo Meekly"...and not with the outrage of "soldiers more."
As the French still say...even today..."for the honor!" Whatever the outcome having a bunch of losers both left and right who's goal character goal is never ever be first in anything other than losing is quite striking indeed.
No surprise with the fags at Fox News of course.
Let alone all the other networks of course.
Can't wait to see Angry Brazilian Fans beat the crap out of the American sports media phuckers. "Say hello to drop kick Murphy" NBC.
The important question: What do I short to make a buck off this fiasco?
Print treasuries to pay for it and sell them to the Belgians. They looooove our debt.
There seems to be absolutely nothing the Finance Sector can do that this President won't subsidize for them.
Look, the problem with college tuition loans is that college tuition costs too goddam much. Which, not the least bit concidentally, is the same problem with health insurance coverage for health care; it costs too goddam much. And housing finance; houses cost too goddam much. Spotting a trend?
So, like the professional troubleshooter I am, I look at how/why/when these things got to costing too goddam much. Quel Surprise, they started costing too goddam much not long after they became regarded as absolute necessities for Middle Class Status. Once that happened, Finance got involved, so people could spend money they didn't have to gain such status. Then people had trouble paying the money they didn't have. So, these things being abolute necessities for Middle Class Status, the Federal Government jumped in. Not, as people thought (because they were so told) to bail out the Middle Class, but instead to make whole the Finance Industry. Once the Finance Industry realized they would get bailed out no matter what, and no matter how absurdly they priced themselves out of reach of their customers, then things really got to costing too goddam much.
Naturally, the only solution is to further privatize the Treasury to the benefit of the Finance Industry.
Meanwhile, a college education gets worse and worse. There are more Executives (oops, "Administrators") every day, making more money to do much less. And they have more money than they know what to do with, so they build football palaces and Alumni centers while students and actual teaching faculty drop out of the middle class. In Health care, specialist MDs, Executives, Pharmaceutical and device manufacturers are among the wealthiest people in the country. But to get a standard physical appointment can take weeks, and the doctor who actually sticks his finger up your ass can barely pay off his loans. In Housing, more money buys less house, and God help you if you actually need to prove chain of title. But hey, the Finance Industry has never been so profitable. What is today, the 2,000th consecutive profitable trading day for GS and the like? Not so hard when you have the full faith and credit (especially credit) of the US Treasury to play with.
Lather. Rinse. Repeat until collapse.
It's just a survival-of-the-fittest game. The smartest-n-savviest people are those who manipulate the system AND the dumbasses for their own personal gain.
Everybody talks about wanting a survival-of-the-fittest system, but then bitch about getting screwed by the most-fit people.
When the system "collaspses" the winners are those who make it to the NEXT system.
How does this effect the average taxpayer since the students are still paying off their loans fully just slower..
Unless the Gov is paying the difference in the student's decreased monthly bill, and then the student pays the Gov back instead of the Loan Company..?
if it's not BANKRUPTCY DISCHARGEABILITY THAN IT IS A BAILOUT FOR PRIVATE BANKS---DISGUISED AS SOCIALIST PROPOGANDA THAT WILL BE EATEN UP BY THE 'SOCIALIST' MORONS.
i put socialist in quotes becasue as a political platform it is simply an extantion of corporatist and bank sponsored entities that convince the 'people' they are getting what's good for them, thus giving them the idea of 'what they want'.
In a mature and fully corrupted social system known as a 'society', what's good for people is generally NOT what people think is good for them. and what people generally think is good for them, is BAD for them.
I say generally, because while the above statments can be attributed to an 'elitist' perspective which is a caricature of paternalism----it can very much also be used to descibe a minority of those harboring the liberty loving perspective, which is not elitist---but which is rooted in the wisdom of ages, and skepticism of the maddness of crowds.
where the twain of elitism and liberty loving shall meet? i don't know....the former relies on harvesting the masses, and the latter relies on taking precautions against getting stuck in their mud.
And, of course, none of the ISM (except fascism) can deal with the fact the smart-n-savvy people can easily manipulate the below-average dumbasses with bullshit, for fun and profit.
Combined with the border lack-of-control, this, and the prisoner swap fiasco, it seems like the administration just said, "f*ck it, its all about to come crashing down anyway, so what difference does it make"
please give the appropriate attribution to "what difference does it make?"
HRH Hillary (we were dead broke when we left the White House) Clinton
Damn this fucker likes to drone on in more ways than one. Is anybody really listening?
only low info debtors & people nneding shit
That's a big ass teleprompter.
It's like the Banks, forgiving debt in Latin America.
Once a debt serf, always a debt serf.
By driving inflated education costs, debt serfdom forever!
Let's pander to the demographics that is abandoning me at record rates ...
What's it gonna take to get you to drive this degree off the lot?
We need a good used degree sales vehicle.
O - how 'bout this....quit regulating the shit out of education and allow online universities to create their own method of accreditation. Heck, you could do this online for free. No debt.
Yeah I know, you have to protect the sacred pig that you have nurtured.
It is so weird....solve education just like healthcare.....don't solve cost issues, just print more money.
Their education process is backward.
First one should get a basic education in financial literacy and then an education in their chosen field rather than an education in their chosen field followed by an expensive and never ending lesson in debt management.
Listening to that Rat makes me sick.
Always blaming the people who actually WORK.
Hey, keep that "work" stuff to yourself. It's darn near illegal, you know.
Banana Republic
Just another photo opp for the Queen.
Baby Boomers started this.
You ran your company into the ground, no worries – bailout.
You ran your city into the ground, no worries – bailout.
Pension funds will be made whole for everyone who BK’d their entity, poor stewards no problem.
Not baby boomers but democrats.
Want more free shit? No problem - vote democrat.
gives me mo free shit - we gots da fed, da fairy godfather hoo cans prints till ass falls off - ello whats not to understand
So...let me get this straight...
The idea is to save their future credit scores so they can...borrow more?
Yes, they have to have high enough credit scores to get a morgage, of course. Just because you have $150,000 in outstanding student loans and a $27K/yr income does not mean you should not be able to borrow $250K for a nice house.
So glad my wife and I saved for years to help pay for my kids...Now I get to pay for degrees in Marxist Studies, Feminist Studies, Human Sexuality and Basket Weaving.
During the 99% BS, they interviewed a moron who was in debt over $200K who went to Columbia to study Social Work. Columbia should be sued for the money back. There is no possible way to pay back that kind of money doing Social Work...
Its all about Marxist Academics on their comfy overpaid perches where they brainwash our kids.
Doesn't limiting your payments to 10% of your income encourage your income to remain low? Or un-reported?
I just hope they don't make 10% a minimum. My minimum SL payment to income ratio is currently 8%. Of course, I have two STEM degrees and a job making well above median income. :)
unintended consequences are a myth. No one would intentionally make $1000 / month on the books, pay only $100 a month on their $150K student loan, and make $3K a month under the table. That simply does not happen.
now you're thinking
The older population who had a oppurtunity to accrue wealth before our country was 100% sold out had the chance to establish themselves, gain assets that have risen (stawks and real estate), and develope skills in the industries that existed. In fact it was once possible to work and pay for school as you went. Min wage in 1960's full time was equivalent to a 40k salary today.
There is no comparison for what the youth face today, it's a different reality.
Times have changed, the system is broken the american industry and promise is gone. It is still possible to succeed but when you look at what the youth is facing on a bell curve the vast majority are being relegated to useless eaters and the serf life chasing welfare and living shit life.
I say bail them all out and hasten the collapse, are alternative is them being dept slaves to the bankers. I'd rather have doom come quickly than a long drawn out servitude for the young today.
Edit: After reading some well thought out comments, I think dept should be forgiven and the banks should eat it. NO BAIL OUT.
Forget the bail out, bail in think. The collective of debt slaves needs to organize and simply stop paying their bills - any bills. No phone bills, no cable bills, no power bills, no water bills, no car payments, no student loan payments, no mortgage payments.
What do you think would happen if 100 million Americans all stopped making any payment of sort AS OF TOMORROW.
How long before this shit system collapses into its colossal footprint and the dust settles over top of it so we can rise from the ashes and start anew?
2 days, 4 days, 6 days? 2 weeks or a month? How long?
risk and price discovery are utterly trashed in higher ed financing... so, here we are
Just make it fucking dischargable by bankrupcy. Why shouldn't it be? Defaulting on a contract has consequences but it's a fundamental right.
Sounds good. GM scatted on their senior debt holders.
It is unsecured lending -
99% of people at graduation have no assets and no job -
They would all just file for bankruptcy - because since they have no assets and no job (income) they would qualify.
What lendor would make loans under this situation?
If your goal is to shut down all student loans then this would be a good plan.
and then maybe tuitions will fall back down to levels that the average working student can actually afford to pay.
Like I stated - If your goal is to end student loans - allowing then to be easily discharged in bankruptcy will get the job done.
The process would be - borrow every fucking penny you can - then after you enter your last semester before graduation - loans already taken out - you file for bankruptcy.
this is the only plan.
keeping students in perpetual debt makes people into debt slaves. in 2005 the credit card lobby wanted to make credit card and auto loan debt non-dischargeable.
according to you, if there is a debt bubble in an area where debt is non-dischargeable, then you can never change the law becuase it would result in the bubble collapsing.
student loans are bogus and universities overcharge for under-providing of 'education'.
make the debt dischargeable and watch the crappiest bullshit predatory schools like the university of pheonix 'reduce' their tuition costs that rely on cheap federallly tax payer guaranteed loans to pay for internet material.
you can get the same educatoin from the khan academiy for free with no degree awarded but the 'paper' is sold as the 'ticket' to upper middle class.
the fantasy that a degree is wroth anything is a marekting ploy. being well read may have benefits and be good for all of soceity, being skilled does as well.
but you don't need a degree to be skilled or well read.
so , rather than attempt to justify why 'educatoin' is so important that citizens should endorse debt slavery as a means to support the ends-------------GO FUCKYOURSELF.
Many people use student loans to get an education and improve their lives.
Many also end up deep in debt with a worthless degree that will never earn them enough to pay back the loans.
Your solution not only "protects" the person that borrows $100K to get a worthless degree in ant farming (because your solution ends unsecured student loans) - but also prevents the person from getting the financing they need to get an engineering degree.
There is a middle ground - not all debt is bad - not all student debt is bad.
Allowing student debt to be discharged in bankruptcy will end all unsecured student loans.
Can't really compare CC debt and student loans - try and get a credit card with a $10K limit when you are 18 years old with no job and no income. Can't do it - and even a fucking idiot like you should be able to figure out why. Maybe I am giving you too much credit - you may not be smart enough to figure out the difference.
Again if you want to end all unsecured student loans then allowing easy discharge in bankruptcy will get that goal accomplished.
But it will also do a lot of harm to the people who could better their lives by getting a college degree, but do not have the ability to pay.
When you have brain surgery to remove that tumor that is causing you to be such and idiot - make sure you use a surgeon that got his education from the Khan Academy.
The real problem is that they have created this insatiable education beast that "educates" too many people in useless courses at inflated prices and in the process has created a whole lot of highly paid administrators and galloping education inflation. So how do you shrink such an industry with so much over capacity without creating another disaster not to mention the electoral handicap of putting young people on the unemployment heap instead of hiding them in colleges?
You can't cut one Big-Gov scam without cutting all them them. Each scam has enough political clout to keep their scam going: Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState – and (now) Big-Space.
I know I don't want to give-up my Big-Gov scam.
Ah, "Peter Pan," such an appropriate name to post a comment on this topic! Anyway, I repeat some basic points:
It SHOULD be obvious to common sense that private banks making the public "money" supply out of nothing is FRAUD. However, since that has been the foundation for the whole economic system for more than a Century, while that fraud was enforced by the power of the government, everyone has necessarily adapted that situation. The vast majority of people, including the students taking out those "loans" of more "money" made out of nothing as debts, have well-developed attitudes of evil deliberate ignorance towards those basic social facts, which SHOULD be obvious to common sense, but are NOT because that society has become terminally stupid, due to the triumphs of carrots and sticks used to persuade people to mostly not know about, and feel that they did not want to know about, the rational evidence and logical arguments which would indicate the actual nature of ENFORCED FRAUDS, where the force never makes those frauds become true, but rather, that force constantly drives the whole society to become crazier and crazier!
Young people are born into a society which is terminally sick and insane, due to its monetary system becoming an almost totally metastasized kind of social cancer, which is therefore practically untreatable. Education is the way that society reproduces itself, and therefore, our current "education" systems are frauds, mostly paid for by frauds, in order to keep a system based on frauds going.
Just like "We the People" are paying for debt slavery to be enforced against them, "We the People" are paying for themselves to be brainwashed to believe in bullshit. Education is run by soft cops, inside the layers of harder and harder cops, all of which are primarily employed to enforce the banksters' frauds, on level after level. There are no good ways to "shrink the industry" of galloping enforced frauds, neither in educational institutions, nor anywhere else, since ALL SOCIAL INSTITUTIONS THAT EXIST TODAY WERE BUILT ON THE FOUNDATION OF ENFORCED FRAUDS, THEY ALL SHARE THE SAME BASIC PROBLEMS.
Other than the personal strategy of developing one's macabre sense of humour to try to get some comic relief from that runaway tragedy, I am not aware of any practically possible political solutions for the problems caused by the almost total triumph of systems of legalized lies, backed by legalized violence, dominating civilization. It seems impossible to stop that runaway fascist plutocracy juggernaut from crashing into the walls of limits which it deliberately ignores, and then bouncing off, over cliffs whose bottoms can now not be seen.
There is little doubt that education has become a major component in the perpetuation of the ongoing fraud, providing distraction and unachievable utopian ideals who's agenda add only fuel to the fire.
People are the same they always have been. They find something for nothing irresistible, but knowledge and a little bit of wisdom tells us, just as the rat is suspicious of the free cheese in the trap, that something for nothing is usually a bad deal. Debt is the free cheese, and resistance is difficult, just as anyone who has dieted or quit smoking knows. But it can be done. Humans can learn, but they must be exposed to the truth that only consequence can provide, just as you can warn a small child of the dangers of a hot stove, inevitably many will only learn the hard way. The liars that seek to manipulate us rely on the concealment of truth AND consequences of choice.
People can stop borrowing. They can effect change through their spending habits, as they have the strongest vote, far more than any election. We are headed on a bad path that if it continues much further will have seriously dire consequences, but the thing is, people can become aware almost instantly, like waking from a dream. I believe it IS possible to redirect this Titanic disaster, but, the sudden awakening may not come without some serious blow back. The awakening will occur, but we can only hope it is sooner than later, as the awakening will only become more violent with worsening conditions.
NO THE PROBLEM IS NOT BUBBLES IN HUMAN BEHAVIOR.
THE PROBLEM IS NON-DISCHARGEABLE DEBT .
ALL NONDISCHARGEABEL DEBT IS BULLSHIT AND FACIALLY ABUSIVE.
there should be NOT A SINGLE CLASS OF DEBT THAT IS NON-DISCHARGEABLE. PERIOD.
That would go a long logn way to solving many problems of the citizenry.
creditor -debotr relations would benefit.
interest rates could rise as debt bubbles implode.
the irs could go eat shit reather than destroy people's lives .
people could tell scam artists platintiffs personal injury bar to eat shit.
non-dischargeable debt is a soft noose that slowly chokes people until they emigrate or go off the grid embracing total poverty.
How does that exactly work when the .fed tells you that you must make loans to anyone that applies..??..
at the same time that they created this huge 'health care' beast - that keeps alive people that should die, and doubly feed the beast with the people that make themselves ill by consuming massive amounts of poison - including refined sugar, high fructose corn syrup and god only knows what really goes into mcdo burgers.
the 4 years my old man was on dialysis 3x a week - the transport, the dialysis, the drugs, the every 6 month intensive care - when he was lucent - he laughed. it was a multiple of whatever he had paid into social security, medicaid etc.
it can't go on forever. he pulled the plug. the family was relieved. he was 80+. survived his father and brother by 20 years. enough is enough.
President Cunt strikes again. I, my sheeple, will teach you all about debt and how to use to destroy people who actually do shit.
It's just a matter of time until he forgives all these loans ... maybe on his way out the door, kind of like a pardon ... or near the election so the Congress will look like the bad guys when they have to countervail the executive order.
Who gives a FF about FICO, credit scores or whatever...when you'll never be able to afford to "buy" a house anyway...?
PEAK DEBT, guys!
Nothing that a new Big-House scam won't solve. Roll the student loans into a guaranteed Big-House loan.
You would think this Wigga, is getting ready for a 3rd term !!!
Money is worthless
Embrace the American Soviet Ruble formerly known as "Dollar"
EOM
Will work for food, not for money.
Its a high crime that our tax dollars are being wasted enriching bankers and the education i ndustrial complex when we could be using that money to enrich bankers and the military industrial complex and kill brown people all around the world.
Any and all that have student loans should help themselves by immediately stopping payment. The banksters stole the loot they loaned you in the first place, soon you won't be able to pay anyways and by not paying you hasten the collapse of their debt ponzi.
Or put another way: By not paying now you will have more for yourself and they will have less of yours when the SHTF.
"My guillotine is a great student."
Pop the student loan bubble?
How exactly?
You don't pay your loans they attach your wages, if still don't pay you go into default and they add 25% and capitalize the outstanding interest with the 25% fee. You cannot got out of student loan debt, unlike a mortgage, credit cards, car loan, etc, etc.
YOU are the collateral (well your hard work is the collateral).
Default= More $$!!!!! Default= More principal!!!!! Who wouldn't want more income?
IT IS IN THEIR BEST INTEREST TO PUSH YOU INTO DEFAULT, THEY WANT DEFAULTS (it's why this bubble was blown in the first place.
Next best thing is to minimize you payments (which is what this crap is) so you extend the length of your loan out past 30, 40, 50 years. Which just means more money from interest on the loan.
What they don't tell you is if you pay five dollars a month you cannot go into default. Take copious loans, pay $60 a year until you die.
Student loan income= their paychecks.
I need a Good Plumber, Electrician, Carpenter, Landscaping Guy to lend a hand to fix my "Total House". I can afford $20000 for this work. But I can't afford a Plumber for $80/Hour. And a Scrappy Electrician for $55/Hour and I definitely afford a Carpenter for $60/Hour nor I can afford a hard Labor (Landscaping) for $20/Hour.
Neither I don't need a History Grad, Language Grad, Art Grad, neither Scientist because definitely I can't have a Academics around the House because they are not part of my life and they are not Physically fit!!
So it is good if Mr. President can send these Academics to get a Trade School after that send them to Work and get to know what these Mexican’s are doing in first hand!!
This way we can fix the Country in all fronts.
I agree 100%. The whole enchilada is out of whack. There's work to be done but nobody can afford to hire anyone because the worker rather sits 2 weeks at home and works 1 week at an inflated rate if he can get the job. Having said this, I hire trades all the time and gladly pay for a hard days work. Carpenters and roofers get $35/hour, guy with bobcat gets $75/hour. No laborer gets over $45/hour no matter what their qualification is. At that rate, I might as well pick up the hammer myself.
i knew this would occur. The other option would try to amend the bankruptcy laws to allow for easy discharge and this was the easiest route to temporarily boost the economy. Welcome to populism.
I give Obama kudos for this. It was a very smart political move. Keep an eye on Elizabeth Warren as I believe this was her brainchild and she is the only roadblock between Hillary (We were broke when we left the White House) Clinton and the presidency.
RE
They had to. And despite this, the DNC is still probably going to get destroyed in the election cycle in 2014.
The only reason the DNC exists is because they are for abortion/gay marriage/immigration and the GOP isn't. The rest of the "ideas", both parties share...the GOP isn't even all that conservative and the DNC isn't even liberal anymore.
It's all a fucking joke, and we are the punchline.
the next item to get "populismized" will be the debt to income ratio EXCLUDING your student loans which will allow you to purchase a home and get further into debt but will get the economy moving in the housing bubble sector.
My God, I'm getting rich in months!
As long as they can't garnish welfare and public housing and free food the system is safe
This is more of a bailout for colleges and banks, not actual students.
They will be made to pay off that debt. Especially when they are forced to build the pyramids.
How mant years of tuition could be offset versus a $100MM African vacation, or $50MM China tripe, or individual jets to Hawaii, or...
QQQBall:
Duuuuuude, never, ever, eat China tripe. And, further, if they are charging you that much, u b a rip-off tahget, don't cha' know.
- Ned
Bend over Taxpayers...and buy lots more Lube......
Thanks for the reminder. I noticed I was getting a little dry down there. The chafing and the rash...
People who paying back own student loan debts will never get a job, because they proved extraordinary stupid.
Those of us who pay our own bills and save for our own kids' college education are Americans too. I don't feel too sorry for people who buy a product they can't afford, or who borrow money they can't pay back (other than due to medical calamity, and for that we have BK).
Over 75% of the people who "buy" a house never pay it off. I believe that would also classify as buying something they can't afford.
Shit, i'd rather have 40k in student loans than a 400k mortgage that's 100k upside down.
Oh you heartless callous person!
You need to learn to share.
The women and the wine.
And now we're gonna share what we got of yours,
Cause I done used all of mine!
Really bud, you should be paying for everyone to go to college, regardless of their need.
Sincerely,
Barry O
From the administration that doesn't accept the consequences of its actions, gathers around it the "coalition of denial".
Obama ... we paid for his entire education, as a black, foreign student who's parent had no money (eventhough gradparents did ok) we were on the hook ... was that a 'good investment'?
It was for the CIA. who raised their little boy right.
4 legs good:
and that was apparently his by-line of an earlier book.
someone has said "born with a black spoon in his mouth". In this case that has about 50% accuracy.
- Ned
The student loans are someone eleses pension plan.
Bailout the students on Monday > bailout the pensions Tuseday.
Yep, career politician's pensions, salaries and decked out offices.
First they bailed out the auto worker pension plans along the bankers and now it's their turn!
Bailoutz Bitchez!!!
The Government will do anything to maintain the space, where citizens voluntarily go off of the employment rolls and park themselves in college. The longer in post-high school education the better.
Capping student loan payments will not affect the bond holders - they do not mark to market.
This is a ploy to keep up college enrollment.
When do we see a chart that shows indebtedness VS college degree?
As it is, this is just a program to keep colleges from being accountable to knowledge xfer...
Sadly, Obama is so obviously flawed as a leader (political persusion, administrative competence), that the libs will learn nothing from the failures of this administration, simply chalking it up to the person of Obama.
Not sure if I shared this here before but a good old friend of mine, a real old geezer tells me how his American uncle way back when paid his loan to an Italian cousin back with the proceeds from the sale of one chicken. That chicken cost as much in US Dollars as he owed the cousin in Liras including interest.
Nothing can stop hyperinflation when it sets in. Government graft, corporate greed and failed central planning always results in a massive default one way or another. I fully expect to settle my debts one day with the proceeds from a few chickens and eggs. Count on it!
The complete reset of all financial accounting and recording is coming within this decade.
There is no other way to keep feeding everyone, employing most of us and paying the cost of health care and retirement for the huge amount of boomers going out.
At some point this system breaks when people do not trust money anymore. When the perception is that money is worthless or everything is for free, then people will have lost faith in the current barter system where fiat gets exchanged for goods and services.
It's coming. Not sure when but it's coming.
This country really is operated by idiots. The good news is they are destroying the very system that sustains them with every FUBAR act.
I think this asshattery will be one of the final nails in the coffin.
Since many of us have already gone Galt... Perhaps this is a good time to define some entertaining parameters for collapse, i.e. sustained negative real GDP, price controls, martial law, rationing, which firms Corzine when, physical delivery failures on commodities contracts, stupid employment rules with which major corporate campaign donators are exempt, major retail and restaurant locations closing, welfare system failures, when fuel passes $12/gal, Obummercare deathcare metrics, etc... and start local pools as the USA Titanic sinks.
Since we can not trust government and MSM propaganda statistics, perhaps use some shadow stats metrics correlated with another independent evaluator to determine when each milestone was crushed.
LOL.
For the LetThemEatRand persona: Regarding Galt as an oligarch.
The Galt character was a philosopher - physicist - engineer, turned activist and railroad laborer. The Midas Mulligan banker character might have qualified as an oligarch if he continued in the banking profession. However, both characters were written with strong morals, ethics, and personal courage and both refused to continue their careers while supporting parasites.
Both left "their fictional world" to live. Just like many of us.
If events appear to indicate that the real "fictional world" is stopping... well perhaps it is.
Want to know when Hell will freeze over?
When they bail out the Gold Miners!
Worst President ever, and it just keeps getting worse. If you lever up on a hard asset, there is a theoretic chance that the asset appreciates. There is an even better chance the asset keeps up with inflation. That diploma from Idiot State Technical Kollege isn't going to do either one, and your wage rate is going to be linked to whatever the cheapest serf in Bangladesh is willing to work for. Unfortunately for you, unlike the Bangladeshi, you have the US government 'protecting' you, driving up prices for everything.
Have a laugh, read this, and if you dont believe me, go to a website here called 'Wonga.Co.Uk'.
This is one of the very many reasons why we are fucked, and not just school kids.
Lend £180.00 pound sterling, and hang on, that isnt such a great deal of money, so if you havent got the cunt, bar emergencies, why lend it? Lend it though for 18 days, just 18 days and pay back the principal, plus £27.99 interest. Work that out folks, if you were on the bread line for 180 for 18 days, wheres the 27.99 come from?
Thats what we civilizied cunts call 'Usury', on their website, 'Wonga.Co.Uk' thats an a respresentative 365% APR.
That cant be paid back. Thats on one loan. The main figure on the website is their overall percentage rate is 5853%.
That, and check the fucker owt, dont take my word for it, is not indentured servitude, its a fucking down right hanging offence. And the cunt that runs 'Wonga.Co.Uk' is my primeministers mate.
The times coming you cunts, the time of praying on those with less than you, just to enrich yourself is running short.
5853% ???
Left to me, and the people I know, I would more than happily skin you alive.
Cunts.
Cunt, they account for hookers, pimpin' and johns in the GDP in Italy at least. Prolly elsewhere soon as well. Anything goes now so why not commercialize the loan sharking and give it a nice catchy name and website?
FYI, the wongas out there collect only on a portion of their loans and still make a killing. 40% to 60% defaults are fully priced in. I am not shitting you.
Cheers,
fellow cunt
P.S. double fisted fuck to whoever junked your post
Walkure,
Cunts, hand in hand my friend.
I do believe I may have picked up more than one NSA GCHQ cunts, posting as posuers, who down vote owt I type. :-)
Let the fucking sniveling little fuckwits embrace their stupidity, in droves.
Anyhow, near 6000% APR, for nothing, printed from thin air should be a hangible offence in my book.
We are witnessning the death of all we have ever known. I am fucking loving it.
Come get some you cunts. This is way over due.
Hehehehehe.
;-)
So a contract can be voided/modified by executive action?
Even if it's only govt. loans (are there any other ed loans these days) - we're in it deep, peeps.
Corporations do it every day - they renig on their pension plans in their Ch-11 pre-approved bankruptcies. Why not allow real people to do the same?
Craig
A tiny portion of SCOTUS did it wrt the GM BK thingie. One hopes that Ruth BG continues to live and do her best for the foreseeable future.
Truly my hope.
- Ned
I would have been much happier if they had just made edumacation debt bankruptable. In effect undo what baby bush did. Bankruptsy introduces its own logic.
Screw the banksters
Screw the colleges,
The people getting underwater basket weaving degrees are already screwed...
Future Tax payers are already screwed...
The only thing this really tells me is there is no way that Gold/Silver cannot go to the moon. In every case they have chosen the path that guarantees future pain.
and Racie--you have exactly described why they excluded the young skulls full of mush from the constitutional BK situation.
This is the college professor's full employment act in action.
- Ned
So first I get to subsidize your mortgage (HARP), then I get to subsidize your car (Cash for Clunkers), then I get to subsidize your food (SNAP) and now i get to subsidize your economically worthless B.A. in African Studies.
Im heading out on vacation at the end of the month, maybe you could return the favor and let me crash at your house, borrow your car and you can put that B.A. to work by cooking me some dinner. I'm paying for it, I should at least get to enjoy some of it.
Just in time for the midterm elections, imagine that.