One of the main reasons the entire debt-fueled house of cards propping the western financial system, hasn't collapsed in a smouldering heap so far - a development that has stumped all those who think of the Reinhart-Rogoff sovereign debt matrix as one dimensinal with only debt/GDP as the key variable and completely ignoring the interest rate (manipulated or not) - is that the cash interest payment on the global mountain of debt has been rather tame, courtesy of all developed world central banks going all in with serial, or increasingly more, parallel monetization of debt. However, while the US Treasury has the benefit of the Federal Reserve (and its Primary Dealer tentacles) as a backstopped buyer of all the debt that's fit to print, individual Americans are not as lucky. And as America's massively overindebted student body may be about to find out, there is no surer way to burst a debt bubble than to send its rates soaring. Because unless Congress pulls off a miracle in the next 24 hours and passes legislation that delays an inevitable doubling of rates on the most popular Federal (subsidized) Stafford loans, the interest is set to double from 3.4% to 6.8%.
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9 comments:
Good.With the upcoming building boom we need trades people.Bricklayers,carpenters,electricians,plumbers,etc.Everyone can't be standing around watching.Somebody needs to do the actual work.The best part is that no payback is required to a college or university.Problem solved.
Remember those young students riding around with their parents old cars with Obama Bumper Stickers? How is that Change working for you now? 5 years later and still riding around in same car with no job and no money to put in gas tank. Obama & his "entourage" flying to 100 million dollar trip to Africa singing YES WE CAN, how does that make you feel?
Good for them they VOTED for Oscama....Deal with it.
It doesn't really matter because most of them have no intentions of paying it back anyway. The taxpayers will be on the hook (again).
They voted for him. So be it. When I was in college we had brains and we studied American history. These kids don't know squat about either one.
Hey 4:16 PM, 6:26 PM and 7:05 PM that isn't completely true. I'm a young voter and I didn't want Obama to be able to get his second term I wanted Ron Paul because he was the only one out of the remaining candidates that had a working/workable Budget/Plan to fix up the Economic crisis. You shouldn't blame Obama's re-election on all the young voters since the older voters are equal to be blamed. Since the young voters itself can't get a president elected because the young voters between the ages of 18 to 29 only make up 21% and where do you think the rest of them comes from.
Fools..more publicans are making it go up... Obama wants to reduce it
10:55 he wants to reduce it? Really, where did you hear that, did Barry say that too? Because last time in 2008 when he said he was gonna Reduce price of gas, one galon was $ 1.89. What is it now? Talk is Overrated and Actoins speak volumes. When idiots like 10:55 voted for the Change, well, Barry just forgot to mention it was gonna be the Change For Worse.
Hey 3:40 some students get loans to go to good trade schools so don't make it a "class" thing. Student loans are an investment in the future, most are paid back unlike all the "give away" programs where there is no expectation of repayment. An educated community is a better community and unemployment rates are lower for people who go to college or trade schools.
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