Given this precedent, will student loans effectively be “forgiven” by the simple expedient of endlessly rolling the payment pause? Perpetually denying investors access to their capital will pause any economic recovery as well.
The Biden administration will relieve Americans from paying their federal student loans through the end of January, extending the pause for what it says is the last time as the government seeks to keep the economic recovery rolling.
The move continues the suspension of payments for all loans owned by the Education Department, maintaining a 0% interest rate and keeping in place a freeze on the collection of defaulted debt.
They wonder why every dirt-bag in the third world is pounding on the door with a kidnapped street child in their arm trying to get in.
In fairness, everybody knows most of those student loans are never going to be repaid anyway.
Just like the US national debt.
The sooner the default happens and all the investors who were depending on that accept that, no, they’re not getting their money and they’re never going to, it was a bad buy, sucks to be me, time to just accept it and try something else – the better.
Yes, I know there are little old ladies whose retirement accounts depend on this sort of thing. Sucks to be them too. The money to pay all these debts does not exist. It was never going to exist.
That has to be recognized and accepted in order for any serious renewed prosperity. The longer the recognition is delayed, the worse the eventual cost.
your bank acct /bank savings/bank will vanish also..
is that personal enough for you??
Just because one doesn’t like the personal consequences of the system running out of room, doesn’t make those consequences go away.
The real question is, are YOU prepared, and if not why not?
The US Government owns all the student loans now. They took over the entire US Student loan Business. That was one of those sneaky little details in the US Affordable Care ACT / Obamacare bill.
I thought they compromised. US Fedtrough picks up any and all defaults, and “investors” keep any returns that are made?
Investors welfare.
Otherwise purple hair Buffy couldnt buy a new Honda, nor spring break in Jamaica while getting her Insectional Social Degree at 99% Democrat faculty/admin paper mill.
“Its a big grift, and you aint in it”, G Carlin.
If you think that this will stall the economic growth you don’t understand how debt functions in the economy.
Which wouldn’t make you unique, since only one economic school even pretends to address the issue.
It would be better if they outright forgave these loans though, for the sake of the economy. The people with all the student debt sure aren’t buying homes.
People who bought US bonds to fund the government voluntarily won’t be buying homes on their return either, not even food or rent.
What happens when the central banks want their money back? Foreclosure?
No, but investment corporations sure as hell are:
https://www.bing.com/search?q=Blackrock%20buying%20spree%20on%20family%20homes&qs=n&form=QBRE&sp=-1&pq=blackrock%20buying%20spree%20on%20family%20homes&sc=1-38&sk=&cvid=1A39B661DD6D4B78B531529E06CC9E8F
Exactly.
Davis thinks the problem is people like Cary Katz not having their billions.
No.
Davis thinks the problem is that the grandma across the street on a fixed income that tried to make a few dollars by investing in something safe, like government bonds, and has nothing to show for it.
I used to get suckered into Canada Savings Bonds too until the return wasn’t worth the paperwork or hassle, currently 0.50% interest.
Governments are busy selling us out, someday business/banks will own it all.
Well if that is what Davis thinks, he’s retarded. Because America nationalized federal student debt nearly a decade ago.
“You’ll own nothing, and like it.”
Blackrock, Wall Street will lease you one.
How many divisions has Blackrock?
Blackrock can enforce their rental agreements as long as the state and local police back them up. When that stops, Blackrock stops, and all the “renters” become de facto owners.
Could even happen sooner, if local governments decide to eminent domain all such out-of-state-landlord rental properties and then offer them at vacant-lot rates to whoever happens to be living in them. They’d win re-election for sure.
I know someone in Massachusetts still living in his house since the 2009 meltdown. Bank that he used to pay mortgage before that got bought, then that bank by Deutsche Bank. Hasnt paid taxes either.
When the music stops this time there might be one chair for every thousand dancers.
But I have to continue to pay taxes? How about my mortgage? Credit cards?
It is one thing to lose your capital because of a bad business decision in a transparent market. It is completely different when you lose it because the government arbitrarily decides not to repay you. That’s theft.
Investors had plans for the capital when it was supposed to be repaid. Those plans, along with economic growth, come to a screeching halt when they discover that their capital has been consumed by someone else.
When BHO Federalized all student loans, he was creating an interim welfare program for 18-25 year olds. And when he means tested the amounts of the loans, he was giving the MOST $$$ … and the MOST debt to the poorest, and most-undereducated of all American college “students”.
Those students with the LEAST chance of ever paying off their college loans received the MOST $$$. Brilliant.
It was AlWAYS the plan to forgive these debts … and fully convert them to welfare payments. Because … “Equity” … or something.
Yup 100%.
Federalised because banks wouldn’t issue loans to take gender studies.
Not knowing that an ethnic studies degree is a golden ticket (for a select few) to a $200k/yr position in some useless Federal bureau of whatever … or a $250k/yr job at the University in “social equity” or some other bullshit Dept. whose job it is to admit the maximum number of BIPOC’s who will receive huge checks from the government they’ll never be able to payoff.
It’s a perpetual money machine for the Universities … all the way down to Beauty college.
Hopefully nobody’s surprised, the son of a whore did say he was going to do it, after all, and so did Bernie, and I can’t be bothered to find out who else among the Dems but I’m sure they weren’t alone. You want the youth vote? Tell them you’ll coddle them from cradle to grave.
Being deeply in debt “was” a good disincentive to those wasting time and resources on degrees that not only offered little chance of viable employment but degrees that if actualized, were more designed to destroy civilization. The institutional left doesn’t care that debt forgiveness is a very expensive tool for vote buying but bankrupting and destroying wealth in society is just the broken eggs of their omelet.
There is no such thing as private property, under Joe and the Ho’.