Worried by reports of rising defaults, investors turned up their noses at a new $225 million bond issue by Sallie Mae, the federal agency that packages individual student loans into large securities. The loan company canceled the offering after two weeks on the market.
Hey. I got some Zimbabwean trillion dollar notes trading at par with the USSA nickel.Mind you.They are not quite as lucrative as Monopoly money.
Investing in bonds that package students loans into securities? What could possibly go wnorg?
Gee, who could have seen that coming?
Anyone else reminded of what happened to New Zealand about 25 years ago when nobody would buy their government bonds?
They can’t go bankrupt anymore and start over with a “clean slate”, the ex students can’t find a mortgage with $50,000. in debt that isn’t being serviced, the usual bond buyers won’t buy them because they aren’t preforming / aren’t preforming and can’t be written down….
Looks like a job for SCOAMF… someone ought to pass a law, SCOAMF, Throw more straw in the economic engine dummy. ..
performing. uff
” investor skittishness is not good news” has to be one of the great understatements. And who would ever have guessed? It sounds as if even institutional investors don’t like losing money!
Sure do. But they are a hell of a lot better off now.
Ummmmmm. Just thought. Maybe Sallie Mae should have tried to sell bonds for a bundled USSA debt. Hear the Chi-coms are looking.Would you buy a bond from somebody that can’t even spell Sally?
The size of government is consuming the people. The Nanny State created over the last 50 years now consumes more of the average Canadian Family budget than we are allowed to keep for Food, Clothing and Housing combined. Taxes to run the various and many overlapping programs that the majority of folks never asked for has caused a tax increase of 1787% since 1961. Here is the link to the latest numbers on the 3 levels of governments Tax Grab on families. http://www.winnipegsun.com/2013/04/27/bring-back-chretien-era-spending-cuts-fraser-institute
The size of government is consuming the people. The Nanny State created over the last 50 years now consumes more of the average Canadian Family budget than we are allowed to keep for Food, Clothing and Housing combined.
I have often said that if progressives could figure out a way to argue it, they’d tax our earnings at 100% and give us an allowance off which to live. All while praising the benevolence of the government.
I mean, think about it — they’d get their food control, their gun control, their ultimate redistribution of wealth. And if you happen to displease those in power…whoops…look like we forgot to mail that allowance check this month.
As to student loans, I still believe that since 2014 isn’t looking too particularly hot for Democrats that Obama will propose or issue an executive order cancelling student debt. Imagine how many kids would turn out to vote for what essentially is a tens of thousands of dollars bribe to keep Democrats in power…
Amy I agree, but the socialist scam is hitting the wall. No one wants to loan socialist countries money for their insane schemes anymore. Many governments all over the world are going bankrupt. Taxes in Canada are so high now, and we have so few taxpayers to carry the debt and the tax burden soon we will see a big pullback or a collapse. The total Sovereign Debt of Canada is around 4 Trillion and we have a GDP of about 1.3 Trillion, doesn’t take a genius to figure out what comes next. Just look at the EU, we are in the same boat.
There’s a reason why physical gold is virtually impossible to buy now – but it’s probably nothing.
I watched an interview with the director of the Canadian Taxpayers and he stated that Ottawa now funds, over 700 programs at the Federal level, way way beyond what they are mandated to do under the BNA. I used to farm in Alberta retired now. I applied to the PFRA for funding to build a dugout, here is how that worked. I contacted the local regional office, which gave me a 800 number which happened to be in Quebec, that’s 2 offices now who spoke only French who gave me a number in Toronto, and the Toronto Office gave a number in Ottawa who referred me back to my regional office. That was 4 different offices to deal with my request and still no answer. When I got back to the regional office and the right person in the regional office finally. He told me that I should reconsider farming in my area and should look into growing trees because of Global Warming. Anyway the long and the short of it, I spent my own money build another dugout for myself. Then a couple of years later the PC’s came along and demanded that they owned our dugouts and wells in Alberta and demanded that they all be registered so they could allocate the water when needed on a priority basis. Stelmach and REDfraud took it further and have gone in deeper with Agenda 21 and extended control from my dugouts and wells to all property in Alberta under Sustainable Resources legislation. Basically trying to extinguish all property rights in Alberta. Too much Government is the problem now. We are Tax Sheep on a big Tax Farm, a resource to be managed by our betters. Free Men and Women what a joke.
RFB
property rights, what property rights, there is no suck beast, U have the “right to use”, and that’s what makes it so easy for the gubmint to dictate to you on your “own” land, U see, land is not portable, the rite to use is!!!