/biz/ - Business & Finance

[Anonymous No.55132792]

Why are huge multinational companies allowed to default on loans, but student loans aren’t ?

[Anonymous No.55132870]

>>55132792
Because we can’t have the poor people thinking money is created out of nothing

[Anonymous No.55132906]

>>55132792
It's because otherwise there wouldn't be student loans. That how it used to be before the 70s. Student loans could be defaulted on so no banks would lend out student loans because the students could immediately default after graduation if they couldn't find a job.

However, the advent of student loans is what made college expensive. The colleges realized the students had more money available to spend and just jacked up prices. Subsidizing anything makes it more expensive.

[Anonymous No.55132913]

>>55132792
Because they have collateral that can be seized. They bank can take over their office tower if the company doesn't pay.
Student loans have nothing behind them. No one can take back your useless basket weaving degree, nor do they want to.

[Anonymous No.55132925]

>>55132792
Because the bank can reposess the underlying real estate/capital to try to recoup some value from the loan. Your liberal arts indoctrination degree that didn't include Econ101 has zero intrinsic value to be seized and sold by the bank.

[Anonymous No.55132936]

>>55132906
>>55132913
>Oh my god. How would the banks survive if people didn’t pay back the money they created from nothing?
Reminder that the fed has set reserve requirements at 0% for big banks and both of these anons clearly lack foreskin

[Anonymous No.55132960]

>>55132870
The picture does tell a thousand words: Kuroda just trying to appear unnoticed, Macklem wearing that shit-eating grin and knowing nothing, Bailey looking like a smug shithead without a care in the world, Lagarde grinning ear-to-ear in her cult-like trance, and Powell grasping his hand and smiling tensely, knowing he has to keep the wheels on this whole shitwagon.

[Anonymous No.55133110]

>>55132792
Because every kid would file for bankruptcy immediately upon graduation. They have no assets that can be seized.

[Anonymous No.55133174]

Is there any reason for my wife to not default on her student loans?

Assuming forgiveness falls through, she has 25k in loans. She’s going to stop working when our kid is born and I’ll be sole income earner. I make around 160k and will likely be going up income from here. If she’s not going to work anymore, her credit score would be pointless anyway in getting any future loans. They can’t come after me because I’m not obligated to take on her debt.

I can’t really find any drawback to this

[Anonymous No.55133276]

>>55132792
Because Bernie lost, get over it and stop majoring in retarded shit