The Nuclear $1.5 Trillion Student Debt Bomb is About To Explode

In this podcast, I go in hard on the Fed and the government for creating a $1.5 trillion ticking time bomb that won't be able to be ignored much longer: the student debt bubble. This debt will ultimately wind up - somehow - being paid for by taxpayers. The bubble would have never gotten this big if the morons in government didn't subsidize and insure the industry, causing lending and borrowing standards to drastically encourage anyone and everyone to go to college. Instead, people use their student loan money to party and pay rent - many students drop out. This debt will not be repaid and is a mini housing crisis waiting to happen again. I give the Fed the business in this podcast.

 

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Comments

Fireman MARDUKTA Wed, 05/16/2018 - 07:06 Permalink

But can't they all get "jobs" fighting the next and last USSAN war for our khazarian master in Israhell? Pentacon Inc. will need all the bodies on the ground if "tiny, democratic" pariah shithole Israhell is to have a fighting chance with its herd of Goyim against the dastardly Persians.

 

Onward to Armageddon, at home and abroad!

In reply to by MARDUKTA

Singelguy Wed, 05/16/2018 - 06:24 Permalink

Not only has government policy created a huge debt bubble, it has allowed colleges and universities to ignore market needs, brainwash students with socialist and communist ideology, and put graduates into the real world with a crap education and a ton of debt on their backs. How has this been a good thing? 

Give Me Some Truth Singelguy Wed, 05/16/2018 - 09:41 Permalink

The higher ed complex is actually a lot bigger than the military industrial complex. Instead of, say, 500 communities that depend on military bases and/or factories that produce MIC products, we have about 10,000 communities that depend on colleges and junior colleges. Good luck ending the funding that “protects” said communities and all their residents. Plus, “education benefits our children.”

In reply to by Singelguy

45North1 Wed, 05/16/2018 - 06:35 Permalink

Student debt funds today and robs from tomorrow.

Debt will sterilize a generation of the supposed best and brightest, shifting demographics.

Funny that those (Academic Industrial Complex employees) will require an economically vibrant generation to follow them and fund their retirement.

 

The seed corn is being eaten.

 

divingengineer 45North1 Wed, 05/16/2018 - 10:51 Permalink

Well, in this country students are not viewed as a an asset, or even as something with potential to become an asset.

They are viewed as sheep to be fleeced, especially the foreign ones, who account for an ever increasing percentage.  

An entire industry exists to prey upon students in the US; textbooks, housing, student loans, tuition, "fees", all set at special rates for students. 

 

In reply to by 45North1

Thethingreenline Wed, 05/16/2018 - 06:52 Permalink

The Illinois pension issues could simply be resolved with a state wide sales tax of 2%. This would allow ALL residents and visitors to Illinois to share in the shore-up process to make pensions whole. Don’t make the homeowners alone pay. Make the pimps, druggies, mafia and rich tax- dodgers pay their fair share.

TTGL

Chief Joesph Wed, 05/16/2018 - 07:23 Permalink

Never could understand why the U.S. allows its students to be treated as objects for profit rather than as an investment in America's future.

It's not so much the fault of the Federal government, as this article pretends, but predatory banks and lending institutions and the states which allow schools to charge whatever they want. (Note:  there are no federal universities, but there are certainly state universities, and states are responsible for education).  The fault with the federal government has to do with not having a unified educational system, and no over-riding policy or control over costs or predatory lending.

Alexander De Large Wed, 05/16/2018 - 07:30 Permalink

I did some pharmaceutical grade blow yesterday along with a bunch of meth.

That blow was fucking superb though.  I started clenching my jaw and geeking within seconds of snorting a couple lines.  

I licked the powder off my pinkie after I dumped a bit out and my whole mouth immediately got numb.  That has never happened before.

I also drank a bunch of vodka and energy drinks, so I was fucking flying.  I just snorted about 6 lines of meth now but I fucking can't stand how meth tastes and how it immediately makes your nose runny.

BigSwingingJohnson Wed, 05/16/2018 - 08:29 Permalink

I am convinced that the Fed cannot give print cash and give it away to friends that support them.

so, they run up the price of stuff (health care, tuition) beyond what can be aforded so that the Fed can print the money to help those poor people afford to life or learn. 

NotKennedy Wed, 05/16/2018 - 08:47 Permalink

Will this be Gen X's legacy and contribution to society?  Bogus education, worthless knowledge and deadbeat diplomas?

Worst of it all seems that idiots masquerading as professors have been co-conspirators in stifling the dissemination of academic substance in favor of some socialist paradigm of emo-pudding.

ToSoft4Truth NotKennedy Wed, 05/16/2018 - 09:43 Permalink

You got to the theater a little late.

Dilution of education started in 1944 with the introduction of the Servicemen’s Readjustment Act of 1944 (G.I. Bill).  Same with the mortgage problem. 

 

Signed into law by President Franklin D. Roosevelt on June 22, 1944, this act, also known as the GI Bill, provided veterans of the Second World War funds for college education, unemployment insurance, and housing.

https://www.ourdocuments.gov/doc.php?flash=true&doc=76

In reply to by NotKennedy

ChanceIs Wed, 05/16/2018 - 09:29 Permalink

I always ask this question and never get an adequate answer:

How can there be a bubble in something which isn't traded?

Get it.  You and I can't go to market and buy a piece of student debt.  (Who would want to?)  So how can there be a bubble?

Of course there is hyper inflation in tuition.  Of course it is inflationary.  But the inflation was created when the government printed money and handed it to the universities...with a crumb for the students with which to party.  The student debt exists on the asset side of the government's ledger in the same fashion that the special Social Security bonds.  Yeah.  You have a piece of paper stating that I owe you something,  but try to collect.

richsob Wed, 05/16/2018 - 09:42 Permalink

So people have student debt.  Cry me a river.  I had student debt too when I came out of college (equivalent to $23,000 in today's money) and I paid off every cent over 10 years at 7% interest.  Every cent.  Yea it kept me from buying some other stuff I would liked to have had but I figured the debt was an investment in my future.  And it turned out to be a good investment because my degree was in something that was useful and I worked hard.  Fuck these millennials.  Seriously.  Fuck'em.  And don't tell me you can't find a good job.  I couldn't either some of the time but I still made it.  

roddy6667 Wed, 05/16/2018 - 10:05 Permalink

Why don't they just print $1.5 trillion and pay off the loans? It's so easy! They don't even have to use paper and ink, just type a bunch of zeroes on a screen. What the hell, make it $1.6 trillion and keep the change!

I am joking but the government does not know that. They will just pull the cash out of thin air.

 

Honest Sam Wed, 05/16/2018 - 10:27 Permalink

That's a pittance compared to the Pension bailouts coming to a Retirement community near you.

There's at least a Quadrillion in unfunded pensions and only LB Johnson's IOUs in the Social Security lock box. 

If Hank and Ben and Timmay could give Lord Blankfein a half a trillion for abject failure, AND DONT YOU AKS THEM ANTY QUESTIONS  ABOUT IT!!, to pay themselves, and their Barbados, ST. Lucia, and Nevis, Eurasian and Japanese mistresses with longitudinal vaginas kept in plush 'Condom'iniums, they can sure as hell give print Quads to give the Chirren a leg up in life, and make the final years of our grandpappy free Viagara rich. 

Jung Wed, 05/16/2018 - 10:30 Permalink

It all started in the revolution time of 1968 when university student numbers spiked, following an ideology of equality: not that IQ's jumped up but the studies became lower level and all kinds of new subjects were introduced that sold well. 

Nobody could get jobs unless with a degree was the ideal, but reality catches up and what a waste: people with degrees of no relevance to anything and huge debts without work, having learned nothing applicable. 

Perhaps time to admit that the old ways were not so bad: university for 5%; colleges or professional education for larger portions; education for applied work; guilds to learn highly skilled craftsmanship to medium and lower: more found a plcae and more satisfaction. Away with this idea all should be pressured to do what leads to misery as it does not fit.

GIVJetMech Wed, 05/16/2018 - 10:37 Permalink

This Asshat Democrat Sherrod Brown has a bill in place to FOIST all that student debt off onto tax payers.  Yet another freebie that the workers will have to pay for.  If I was a parent who had already taken out a mortgage to pay for their child's education (and already paid it back), I'd be pissed to the MAX!! 

What bugs me is that only about 45 percent of the US population is working and paying taxes!  The rest are getting a free ride on those that work.  This is what happens when a bunch of democratic lawmakers get into power for any length of time....a bona fide move towards a socialist society.  Great.  Everyone can see how a move to socialism is working out for Venezuela.  The bulk of THAT nation is searching for food in the garbage cans.  This SUCKS!