Student Loan Debt- The Next Destabilizing Crash….
You think what’s happening with the subprime credit crash is bad? Well, here we are years into it and we’re still not anywhere near the end of this crash…..and despite years of tinkering and denial, have you heard any proposals that you think will solve the massive, systemic problems?
Sorry folks, there ain’t none. Principle reductions won’t work anymore…you just cannot write down enough given the crashing market…and even if you did, the writedowns would only cause further price declines. Modifications? Forget it. Even if the servicers could process paperwork or get the modifications out by the sixth try, most just do not make economic sense anymore. Short sales? Sorry, not enough Canadians to buy them all and you can just forget about American purchasers….not nearly enough jobs to support the new households.
There’s that word again…Jobs….not Steve Jobs…Not McDonalds Jobs….Real jobs…Any Jobs. Sustained jobs. You know, Careers, trades, occupations, salaries, benefits. Those kinds of jobs are gone and the “leaders” are not doing anything to bring them back. But forget about foreclosures, cause that problem is just the first debt crisis to hit. The next crisis (and it ain’t going to wait in line for eternity for the current crisis to conclude) is the looming student loan debt crisis.
The same vipers and villians that sold Americans up the river and stole all their savings and equity engaged in an even more sinister scheme…stealing not just the existing equity of the American middle class…no, they took it one huge step further and stole all the life’s work of the young generation that had not yet made any money….they raped and pillaged the students who mortgaged all their future earnings while they were in college to pay for student loans.
But now that they’re out and cannot pay those loans, the Wall Street Vipers are going to descend and rip away and garnish their wages from Starbucks or McDonalds.
The whole thing is not unlike the Martin Luther and his dispute with the Catholic Church. One of the major catalysts behind the Protestant Revolution was the selling of indulgences….it had been going on for years (the first bubble) but what really pushed Luther over the edge was the selling of indulgences for the those that had been dead for years (the second bubble).
It’s bad enough that the wages and equity of the middle class have been gutted, stolen….but just what’s going to happen in this country when the very young and disaffected realize they’ve all been robbed and they have ZERO future because they’re future has been securitized, collateralized, brokered, bought and sold.
Just add this disaffected student class of in with the homeowners, the middle class, my friends in the military, the municipal workers and every other American who has been robbed blind while the vipers on Wall Street just have an Orgy of Greed and Obscene profits.
Can’t imagine the impact of this mix? Don’t have the imagination? Just have a look over at Greece…..