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786606 No.786606 [Reply] [Original]

What happens if all student debts default at the same time?

>> No.786620

Students win, banks loose.
But it's hard to achieve, you need a lot organization to pull that up.

See Chile, for instance. The students there are trying to get free higher education, and they're achiving so by protesting with hard core strikes and occupations. It has been around 4 years since they started rioting, and it has paid off for them. This year they managed to get free college for 60% of the population, they're a third world country, but they are doing that. Do you really think America can't afford to get free higher education?

>> No.786624

>>786620
The US can afford free education, health care, housing, water, electricity, energy, as well as provide jobs for everyone thereby abolishing poverty and hunger

the problem is that the masses aren't politically organized to push these reforms

>> No.786634

>>786624
I guess americans are too busy caring about Hollywood or reality tv.

>> No.786635

>>786624
Okay, comrade, good work repeating what your Jewish sociology professor taught you.

>> No.786637

>>786624
You're a delusional fucking idiot, mate. You 16-18?

>> No.786638

>>786624

If everyone is in poverty, then there no poverty

>> No.786643

>>786637
lol you're a fucking retard if you don't think we can EASILY afford to give everyone in the country free health care, medical care, housing and food. We're wealthy as fuck.

>> No.786645

>>786635
>>786637
>>786638

>country can afford trillion of dollars in fake/bullshit wars
>country can't afford free education

Why are americans so brain washed?

>> No.786647

>>786645
See >>786635

They think socialists are the conspirators, not the other way around.

>> No.786658

>>786647
I guess the US really managed to win the cold war.

>> No.786669

>>786606

hypothetically - market collapse and panic for everyone.

There's over 1 trillion dollars in student loan debt. who do you think has provided money for that debt? the government didn't just print up 1 trillion dollars to throw at students. The money is wrapped up in debt and credit instruments that are held by various mutual funds, pension groups, 401k accounts etc.

Odds are pretty good that anyone with a pension or a 401k retirement plan has a potion of their money backing student loans.

So hypothetically, if they all defaulted at once, then there will be mass contagion in the fixed income markets, interest rates will shoot up, market level bond prices will probably collapse since there will be panic everywhere.

seniors and people near retirement will see their portfolio's value plummet... something along the lines of the 2008/9 housing crisis.

good thing is you can't declare bankruptcy to discharge student loan debt like what a lot of homeowners did.

>> No.786738

>>786643
This.

I think the exclusion of wealth is about the ruling class maintaining control and subservience over the working class.

And also to keep their breeding down.

Think about it...

>> No.786785

>>786647

I'm am American, and I'm Socialist.

Technically my exact political mentality is known as "democratized socialism", but that gets weird trying to explain the differences and all that. People who hear "socialism" automatically put up red flags so I just call it what it is and end it there.

>> No.786786

>>786669

You can now write off something like 50% of student loans on your taxes. My brother is doing this currently, and he is something like $88,000 in debt. So... yeah. This might start to become a reality, very soon.

>> No.786805

>>786635
Europeans can manage fine, why are Germans never complaining about student debt? They have a working system.

Meanwhile in the US you need to get a 80k debt to get a degree because if you do a difficult STEM major you won't have that much time to work.

>> No.786819

>>786669
if we made it so they could declare bankruptcy it would bring down prices

we don't even need forgiveness for the ones that already have loans, just make it so that any student loans from here on out are dischargeable through bankruptcy. No longer would shanaynay get a 160k loan to study how strong womyn of color built amerikkka at a private school across the country. the flip side to this is that most of the people that want free college would just not get loans. Schools would have to drop prices to attract students, and would probably have to shed administration jobs. Some schools would fold, especially the for profits but also some over-leveraged public and private nonprofits as well. 'art' degrees would once again become the domain of the rich and listless. Some departments would do just fine, others would be effectively destroyed, eliminating the one source of relevent employment for holders of these degrees.

in other words, it would be glorious

>> No.786833 [DELETED] 

>>786606
Gentlemen would you mind bumping my thread, thank you.
>>>/r/13455005

>> No.786852

>>786635
That's one Jew i respect then.

>> No.786853
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786853

>>786819

>> No.786856

>>786785
Libertarian (enlightenment meaning, not Ayn Rand) Socialism is the way forward.

>> No.786858

There's a bond market crash looming caused by illiquid investments, and something tells me student loans are a catalyst for this event.

>> No.786861

>tfw i'm paying cash
:[

>> No.786862

>>786738
>And also to keep their breeding down.
Then someone should tell the poor to stop having so many fucking kids.

>> No.786929
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786929

>>786861
>tfw I got paid to go

>> No.786930
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786930

>>786929

>> No.786941

Not gonna lie, I'll be pissed if there's any kind of national movement that succeeds in forgiving student loans. I just finished paying off my 30k, so what do I get that back? Nope I'm just sol for doing what I'm supposed to.

>> No.786947

>What happens if all student debts default at the same time?

They won't default, what is happening instead of people with student debt are pushing things further and further down the road because they are saddled with debt.

>oh you thought you could buy a house at 30 ? Good luck now you gotta wait until you're 40
>not saving for retirement when you can
the list goes on

>> No.786948

>>786620
It will change very little. The universities are at fault, not the banks. It is not banks nor the feds that have jacked up tuition at 4x the inflation rate for the past 20 years. Stop buying shit you can't afford. Especially if that shit is education. All of it can be learned from books and the internet for free. Don't expect people who made good decisions in life to pay for your shitty ones.

>> No.786955

>>786606
Best possible outcome is that student debt becomes bankruptable. But that will make it MUCH tougher to qualify for student loans in the first place.

>> No.786957
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786957

>>786805
>Europeans can manage fine, why are Germans never complaining about student debt?
Because they're a bunch of pussies that would rather have the government raise taxes and spend their money for them. Pic related, similar story across Europe.

>>786941
There won't be. Restructuring perhaps, or some intelligent criteria applied (e.g., you have to make $X per year before the repayments are due).

>> No.787026

>>786643

>we

The money someone else earned and owns is not our money; its theirs.

>> No.787028

>>786805

Because their population is much smaller than ours. And they're better with their money. You don't gas six million kikes without learning a thing or two.

>> No.787034

>>786941
>Not gonna lie, I'll be pissed if there's any kind of national movement that succeeds in forgiving student loans. I just finished paying off my 30k, so what do I get that back? Nope I'm just sol for doing what I'm supposed to.

THIS. I studied my ass off for my CE/EE double major and came out with a moutain of debt. But I got a good job and paid it off.

Why the fuck should I have to work my ass off to pay off a student loan for some nigger that chose to study "african american histroy" a can't get a job at McD's???

That's somehow society's responsibility to pay for some niggers poor life decisions?

>> No.787043

>>786941
>>787034
>I got screwed over so everyone else should be too!
Can't get much more 'Merican than that.

>> No.787045

>>786606

this should actually happen. sure many peoples credit scores will be shit for 7 yrs but at least most colleges will go under too.

>> No.787049

>>787043

But most kids didn't even get "screwed over".

They made poor life decisions in choosing useless majors, and tried to shift the responsibility once they realized they made a mistake.

>> No.787051

>>787049

And on top of that, they try to make others pay for their own shitty decisions. Your parents told you to be a doctor or engineer. Nope. You wanted to major in Women's Studies.

Nobody "screwed" you over.

>> No.787059

>>786930
>want to learn skills to be self employed
>too busy at wage slave job to learn said skills
What a wonderful trap

>> No.787072

>>787034
No need to utilize racial epithets. I get your frustration, though. I'm in the same boat.
>>787049
>>787051
In truth, these people were informed/told that if they studied/put their hard work in/applied themselves, they'd be rewarded.

I think you guys misunderstand the ideological mindset ingrained in American society and I'm tempted to even ask if you guys are American born. The reason why I doubt your citizenship is because you guys clearly haven't heard the classic American ethos that has been paraded for quite some time and was surprisingly true years ago. Let me tell you what my mother told me when I was growing up:

>Anon, choose a major that you love but is lucrative. That being said, work hard and achieve your goals, and you'll get rewarded! Your hard work will pay off!
>Anon, if you obtain a superb career and get your degrees, you'll get any woman you want!
>Anon, the American dream is still attainable. Just follow these set of guidelines.

My mother has a BA in Philosophy that she earned in the 70s and a second BA in English she took a few years later. She works as a fucking assistant supervisor at a fucking hospital. My father is an architect. Both told me that American society will reward them because American society, back then, DID reward people.

The fact of the matter is that University is not only long, but it's a formative experience. People who decide to study something you deem useless, i.e., Women's Studies, do so because they don't want to spend their entire academic career in plight. I've seen many engineer-wanna-be's fail out horribly; so much so that even community colleges don't fucking want them sometimes. I've also seen people spend their entire academic career doing purely theoretical mathematics and end up with fucking nothing at all, except a stellar 4.0 GPA and a hypothetical big cock.

>> No.787080

>>787051
>Your parents told you to be a doctor or engineer. Nope. You wanted to major in Women's Studies.

I'd also like to discuss this.

Let's face it: It is extremely difficult to become a doctor/lawyer/engineer/[successful] businessman/woman.

Aside from intellectual capability, which I believe can be surmounted, there's the fact that most people are not ready to commit. These careers need commitment and dedication. You can't take an average kid off of the street and tell him, "spend 60+ hrs studying for four/five years straight, maintain a high 3.7+ GPA, and get involved in internships every summer/winter" and expect him to be on board for that. Not everyone wants to do that, and not everyone is cut out for that shit. You guys say these things as if everyone/anyone can do that, or even wants to.

I've always, ALWAYS, been of the mindset that mostly anyone(read: 99% of so called ''average'' people) can pursue these paths but they choose not to because a) it's fucking hard as balls and b) it's not apart of their personality.

There are genuinely people who want to get a 4yr degree for the sake of the degree, get a 9-5, have 2.5 kids, a house and make a good middle-class income. These people don't want extravagance or Mark Zuckerberg-tier wealth. They may say they do, but once they realize the work they'd have to put in, they shy away.

Many people are OK with a middle class income. The American dream once promised this: You got a degree, worked hard, were able to get a job and you were practically guaranteed a middle class income. It happened with my mom, my dad and I even scored a middle-class job coming right out of my MS.

>> No.787091

>>787072
I think you hit the nail on the head. And good guess: I am a first gen immigrant.

I have personally experienced real world poverty, not "American flat screen tv, spinning rims poverty". It's what drives alot of us.

None of us were ever told: "if you just do what you love, you'll be successful in life." We were taught to compete as a survival instinct.

2nd gen immigrant kids start to lose this drive & motivation once they start to live the "entitled life."

>> No.787099

>>786669

Fucking Boomers deserve it tbh

Their fault for basing their retirement on massive debt burdens for the next gen, selfish fucks.

>> No.787100

>>787091
I get it. Believe it or not, guess what? I recognize that because my mother and father are immigrants, but worked hard in American society. They left massive poverty in their country, came here and they were able to build a life for themselves. They passed that American dream unto me because, guess what? They're living proof of it.

They really believe in it because it happened for them and thus, they passed that unto me. That being said, they always told me to choose something that I love, "but lucrative," so that immigrant edge has always been etched in me.

Just know that a lot more people like me(American born) and those with ingrained American connections are being told this. Even the way my mother and dad fell under the archetypical American dream experience. They met shortly after their respective stint in University at work, went out on dates and then he proposed. My mother was literally a virgin before my dad.

These people pass these traits down to their own children like my parents did to me; they believe in the American dream because it's real. It was real. It happened for them. This is why so many baby boomers are so surprised when American kids today that they're trying but can't find anything; to them, they can't believe it. That's not the America they know. The America they know rewards people for hard work.

Our generation should be a bit considerate of them; I think we're way too harsh. They experienced possibly the greatest fucking time in history, market-wise, and they can't understand how we're having it so hard. People could get fucking degrees in Literature and work at banks for fucks sake.

Entry level positions now are the equivalent of mid-level positions back in the 70s, 80s or even 90s. I know three languages(C/C++, Java and Python with Simulink/MATLAB) and I'm considered just 'average' with people who know that and 5+ more shit.

>> No.787120

>>787099
>the boomers made me take out massive loans for my liberal arts degree!

>> No.787147

>>787099
Its people like you that make everyone think our generation is entitled

>> No.787165

>>787120
As a generation, the boomers raised and guided their impressionable children through their formative years to pursue college and major in what they enjoyed.

Had the boomers dun goofed with their degree selection in the 60s/70s they would have been out of pocket 2k or so - and they still would have found easy employment. The average grad is leaving university today with 35k in student loans.

>> No.787168

>>786606
you cant default student loans

>> No.787174

>>786785
>"democratized socialism"

So..mob rule?

>> No.787181

>>787168
I think he means just drop out of civil participation: Stop paying, don't work (No wages to garnish).

>> No.787193

>>787165

To put the 2k in perspective that's about $12k in today's dollars (based on 1970).

>> No.787208

>>787181

They'll garnish your welfare and any social benefits too. Enjoy being hobo status I guess.

>> No.787209

>>787165
What's wrong with 35k in debt? Get a job and pay it off.

Personally, I'd much rather take the $35k in debt and keep taxes lower. If you're an above average student/worker, you should feel the same way.

>> No.787211

>>787208
About 40 mil people apparently have student loan debt. If - and it's not going to happen - all of them were to just drop out of society simultaneously, you can guarantee it'd be forgiven by the government. It'd cause a great depression era economic sink.

>> No.787218

>>787211

I suppose if we go to the extreme then yes, it would be. Like you said, I don't see it happening.

In fact the banks would love to see these people refuse to give in for a couple of years. It lets all that interest grow. They'd never organize enough people to fuck the banks over.

>> No.787257

>>787218

Not banks, as mentioned earlier, all the student loan debt is basically packed and wrapped up and sold as securitized products to hedge funds, mutual funds etc which eventually trickles down into 401k plans, pension plans, retail investor accounts, insurance company holdings, etc.

The irony is people who default on their student loans are likely the counterparty to their own loan in some way and form.

>> No.787259

>>787165
Inflation, bra. http://www.cargurus.com/Cars/Discussion-c4_ds40061 shows people spending around 2,500 on new Mustangs back in the 1960's. So they'd be out a car to get their education.

A new Mustang is 23,000 base. I'm out less than that for 4 year college...

>> No.787331

>>787257

>The irony is people who default on their student loans are likely the counterparty to their own loan in some way and form.

Care to elaborate?

>> No.787347

>>787331
uh he already said it... If you invest in a mutual fund that includes your own debt..

>> No.787353

>>787259
PROTIP: College tuition is 3 times as much as it was in 1970, adjusted for inflation.

>> No.787369
File: 14 KB, 490x394, a-Purchasing-Power-of-U.S.-Dollar.jpg [View same] [iqdb] [saucenao] [google]
787369

>>787259

you can't use technologically advancing items like cars as an inflation measure. you can.. but it's really fucking difficult.

a 1960s stang and a 2015 stang are so different that they are almost entirely unrecognizeable as the same car from a technology standpoint.

i could list the differences in the cars, but the list would eb exhaustively long. and the federal safety and fuel economy standards that each car had to meet are also entirely different.


if you are going to talk inflation.. you should talk about something that hasn't changed so much.. like gold.. or oil.. or oranges... or use the actually available inflation measures that are published by economists.

>> No.787381

>>787353

You can thank the university unions & pension systems for that.

In 1970, $0.30 of every dollar you pay for school goes to pensions and $0.70 goes towards your education.

Today, $0.68 of every dollar you pay goes to pensions while only 32 cents are going towards your actual eduction.

The vast majority of your student loan is paying for some old retired fucks boat off the Florida keys.

Millenials still don't realize Unions are their biggest enemy. Not the schools.

>> No.787389

>>786805
Bullshit, I did it. Twice.BS 4 years MS 2 years. Electrical Engineering.

>> No.787466

>>787209
You dun goofed.

Grads today face the following issues (boomers never had to face):

-Bleak employment options and opportunities.
-Boomers are not retiring (many are broke) and are competing with new grads for many entry level positions.
-College is 3x more expensive adjusted for inflation.
-Good luck finding easy employment without experience or a non-stem degree.
-Rents have never been higher (inflation adjusted).
-Real estate has never been higher priced within the cities - which effectively prices the majority of millenials out of the market.
-Many (most?) non-stem grads are facing low-paying job prospects within the current market.

Boomers inherited the wealthiest/greatest system in the world. Jobs where abundant. A college degree in anything was about the only thing required to really start stacking some cash - but a high school diploma was sufficient for most. Real estate was affordable (good for starting families and all that).

Ya done fucked everyting-ting up ya gay boomer.

>> No.787493

>>787466
>-Boomers are not retiring (many are broke) and are competing with new grads for many entry level positions.
I remember the local paper ran a story a few months about how maybe you should work past your retirement , because it can be good for your health.
>and of course few of them have saved enough for retirement anyways
>of course thats a burden their children will have to bear too

The fuck up is that, in previous generations the people at the top retired as the entire pyramid moved up.
What is happening is that the base keeps getting bigger, but the top doesn't want to go anywhere and is clogging everything up.

>> No.787693

>>786948
>thinking goverment won't end up paying to keep colleges alive
>learned for free
>implying you don't need a god tier education before even thinking about learning by yourself
>implying people who got shitty high school can manage to try that
>implying anyone, at all, except very bright outcast manage to actually learn shit that way
>people who made good decisions is the people who had money/education

>> No.788411

>>786929
Paid to go
took out cheap loans anyway.
bought house
rented it out
Stacks on Stacks on Stacks

>> No.788437

>>786941
And your feelings about something that doesnt even affect you anymore should hinder society ? Just try thinking about your statement

>> No.788439

>>786624
>free

Just because you spend other people's money doesn't make your purchases free.

>> No.788455

>>787049
if everyone where a doctor or an engineer it would have terrible pay.

>> No.788520

>>788439
You mean the bums who didn't want to pay for their own education now have to pay for others to get free education, rather than students who ACTUALLY contribute to the economy having to pay debts for the next 20 years of their life? Hmm...

>> No.789184

debt is not bad

debt makes people work harder and pressures the smart to find novel ways to pay it off. It's like a psychological whip so to speak. Without it more than none would be useless economic turds like hippies.

The thought of having money destroys the motivation of the youth to achieve more than his predecessors. The thought of having no money and having debt "whips" the youth into action since they have to pay it off in someway.

If you keep comparing yourselves to times where life is easier, of course you are going to think life is hard. You can throw around numbers and stuff but end of the day you still wont be able to accurately predict the movements of this endlessly vast global economy.

>> No.789220

>>787099
>Their fault for basing their retirement on massive debt burdens for the next gen, selfish fucks

I think you mean Unions. They're the ones giving themselves raises and pension increases on the backs of young tax payers.

It's you Millenials that will have to pay the VAST majority of public employee pensions. You kids can thank Unions for that.

>> No.789222

>>786786
Deducting student loan interest on your income taxes and defaulting on the loans are entirely different things, dumbass.

>> No.789237

>>786645
>>786647
We can't afford them, which is why we have so much debt

Why are there so many people on a business board who assume income=wealth? Homeless guys under the bridge are better off financially than the US

>> No.789313

>>789237
muh debt

>> No.789330

>>786624
This is true. Trillions of dosh goes towards retarded and unneeded things. Namely all military shit on foreign soils, porn, etc.

You'd only need a 10th of the cost if prevention and awareness was ramped up greatly. Utilities are pretty much a non-problem. Their use can be reduced through 1000s of means.

The only reason there's a divide in anything is because that is what people want.

>> No.790456

>>786635
Merica spends $9 million a day bombing a desert 5,000 miles away.

>> No.790478

>>786862
Can we sterilize the poor? Anyone that makes less than 45k at age 30 has to be sterilized

>> No.790847

>>789237
In the 1980s, sure.

Nowadays most homeless guys under a bridge have massive debt from their failed past lifestyles.