The three places with the largest average balance are Washington D.C. , Maryland, and VirginIa. It almost gives the appearance of self-dealing, but thank god its just a coincidence.
Highest Average Student Loan Debt per Borrower
Washington, D.C. ($55,508)
Maryland ($43,619)
Georgia ($42,207)
Virginia ($39,892)
South Carolina ($38,915)
El_Tedo
1 year ago
“Biden likely understands what he did is unconstitutional.”
Biden likely doesn’t even know he’s the (faux) president half the time.
Hansa Junchun
1 year ago
Historically, overwhelming debt has been a killer of economies, which is why truly ancient civilizations — Egypt, Mesopotamia, Indus Valley, all of which operated on credit rather than money — had regular debt jubilees to save the consumers from their creditors. In modern times, debt jubilees occur only when the banks holding those debts collapse, along with the entire economy. Even then, the debts are often sold at a discount to other parties, without any discounts for the debtors.
oee
1 year ago
You claim that the Biden admin poliicies are going badbly. They going well. The Biden/Harris admin has created 10 million new jobs in 19 months. The Trump admin LOST 2.50 MILLION IN 48 MONTHS.
Trump admin ‘created’ 13 million jobs between 2017 and 2020. (peak of 153.1 million in Nov ’19) Covid crash caused a loss of 13 Million.
Biden admin ‘created’ 11 million jobs between 2021 and Jul 2022. We’re still sitting at 152.2 million jobs, not even back to 2019 numbers.
National Debt incurred under Trump: $6.9 Trillion including Covid spending and economic downturn.
National Debt incurred under Biden in 19 months: 3.6 Trillion and counting.
Oh, and under Obama the debt soared by nearly 70%, from $11.9 Trillion to $20.2 Trillion. Obama only ‘created’ 9 million jobs over 8 years.
Not thinking Keynesian policies are all they’re cracked up to be.
Call_Me
1 year ago
“Democrats are increasingly likely to hold the Senate due to extremely poor candidate selections demanded by Trump.”
An increasingly unpopular sitting president dealing with a floundering economy and unpopular military excursions means the only way the other party could fail this election cycle is if they throw the game.
Whether one views 45 as a savior, a clandestine actor bringing the GOP down from the inside, or the root of all evil, the end result is the same: emotions are enflamed and higher-level thinking does not take place in the minds of most of the electorate. The Rs cheering on the return of a trans-politico (previously identified as D) who frittered away 4 years in office while behaving much more like his predecessor than an outsider, the Ds venerating the likes of McCain and Child of Cheney – it truly is a mad, mad, mad, mad world.
Dr Oz and Herschel Walker are awful candidates (all Walker had to do was shut his mouth and he would have walked to victory, but too late for that).
The GOP isn’t throwing the game — Trump helped those candidates get nominations but he can’t help them win it. Trump reduced the odds that the GOP takes the Senate by a great deal. The GOP is sitting around wondering how to handle Trump without driving away his supporters. Until they figure it out, they’re fighting with both arms behind their back. They may be losing but they’re not throwing it.
So then you’re in the camp that an inside man is bringing down the organization?
Those two really are poor candidates that do not have broad appeal. Similar to 45 back in 2016, the only way they can win is in spite of themselves. I don’t see R-leaning voters in those two states cutting off their noses to spite their faces and either voting a different party or abstaining if the trumpy candidate didn’t get party endorsement. Creating more chaos and increasing the emotional ferver seems intentful to me. Kowtowing to an old guy who recently changed party affiliation does not make strategic sense.
“I don’t see R-leaning voters in those two states cutting off their noses to spite their faces and either voting a different party”In their shoes, I would suck it up and vote for Oz and Walker, but my hatred of what the Democrats have become is the driving factor for that, not loyalty to the GOP or Trump.Not every non-partisan shares my feelings. They’ve certainly driven away swing voters by nominating those two.
Casual_Observer2020
1 year ago
The way they calculate interest is usury. Federal student loans should be dischargeable via bankruptcy court like any other loans. I knew people who did this when they allowed you to transfer loans to credit cards and then just strategically defaulted. The only way to teach the lenders a lesson is to default and challenge it in the court system. This is no different than giving loans to people who don’t have income. The system needs to allow for defaulting on all loans. Universities should take the brunt of the blame for not bringing their costs in line with actual demand. The number of students going to college peaked long ago in America. This is really no different than the housing bubble in the 00s.
I find this preferable to just canceling the debt outright. There should be a punishment for defaulting on a loan but forcing people to carry loans that can never be discharged is wrong.
It helps to remind people that all loans have two parties — the debtor AND the lender. Back in 2009, all I heard was “Well, these zero-down payment people shouldn’t have taken a loan they couldn’t pay!” but I didn’t hear anyone really say “Well, these greedy banks shouldn’t have handed out zero-down payment loans to everyone!”
danis
1 year ago
Mish – heard a claim that cancelling student debt would be deflationary in a credit driven economy. I’m not sure how to think about that, and am curious on your take?
Maybe they meant if the lenders were forced to eat it
That’s not what’s happening though, these aren’t really being canceled. The govt will either print or borrow to pay these loans and then the cost is spread to people holding cash or people who pay taxes.
JRM
1 year ago
Class action suit by former/current students and parents!!!!!
Six000mileyear
1 year ago
Every member in Congress has legal standing to challenge the Baccalaureate Bailout on the basis Biden violated separation of Constitutional powers. Congress passed no law giving him permission nor any tax to pay for the program.
DTJ – most Americans disagree, his poll numbers have never been good. This action will help boost his numbers, we just don’t like the end-run on the Constitution. I also like to see the Fed being allowed to raise rates, to help reduce inflation. They never should’ve gone to zero.
Captain Ahab
1 year ago
All these negative comments about President Biden, when we really should be sympathetic. But let’s face it; he’s pathetic! In fact, he’s always been pathetic.
His stellar record includes numerous plagiarism charges, surely an early indicator of a corrupt politician. He graduated from the ‘demanding’ University of Delaware with a ‘C’ average (Bachelor of Arts) and ranked 506th in a class that had 688 students. No Perry Mason, he graduated 76th of 85 students in his law school class at Syracuse U, class of 1968. How did U. Syracuse law school rank in 1968 compared to say, Wharton? Who knows; however, since 1997 the law school has not been in the top 50. Wharton, on the other hand, ranks #2 in the world.
I could fill pages with critical analysis of Biden, bad decision by bad decision. Student loan forgiveness is just one more. No mean tweets, so that’s a good thing. Does it compensate for a pathetic president?
Why did #76 make it to POTUS? His brilliance as Vice President? His insight on global affairs while on the Senate Foreign Relations Committee?…
whirlaway
1 year ago
Surprise, surprise! When trillions are poured into the markets to fatten the morbidly rich billionaires even further, there is not a peep – other than the customary “yeah, yeah, yeah, I oppose it” crap. But some poor guy gets 10K off on his never-shrinking student loan balance, and all the “brave” warriors are on the case!
“Before you take out a loan, it’s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest.”
No one forced someone to sign a contract. Never mind much of that student debt went to fueling 4 / 5 / 6 years of pizza, beer, I phones, Apple laptops, etc.
Obviously, rule of law no concern to you … or POTUS.
The same rule applies to the corporations that got their bailouts too. Those bailouts were much bigger and happened earlier than this. What’s more, they will happen again if they want it. Fix that first or go to hell!
You cant use student loans for the things youve claimed. The school determines the amount you need for tuition and books ONLY and this is sent to the creditor and is unmodifiable by the debtor.
Did the ‘poor guy’ or ‘gal’ ever graduate? Did he study while a student, attend classes while sober? Did he work two jobs while in college? Did he ever get a competitive scholarship? Did he ever think about a career path? Frankly, I am tired of morbidly dumb, lazy, incompetent a-holes with their hands out.
If you’re rich because you worked your butt off, risked everything to take you ideas to reality, saved every last dime, learned from your mistakes and tried again…. more power to you.
Gen y is getting old enough that they actually vote. No politician (except the kooky ones) would dare challenge this.
Cocoa
1 year ago
This doesn’t solve all that much unless you took a loan of 20k to go to some local college somewhere where 4 years. MIT costs 90k a year! Liberal Art private schools cost 65000! University of California of 4 years for in-state is about 90k for 4 years. Out of state if 50k a year. This doesn’t do anything except enable schools to charge MORE since they know 20k will be evaporated and private debt taken by public sector(and bankrupting the US government intentionally)
There will be a crash and consolidation in the University system soon enough, there aren’t enough students enrolling. Look at the trends, do extrapolations and profit from the downfall.
Study: Most Student Debt Belongs To High-Wealth Households
In a new report for the Brookings Institution, economist Adam Looney improves student debt statistics to incorporate both liabilities and assets. Advocates often argue that student debt is concentrated among households with low or negative net worth (on paper). Student debt forgiveness, the argument goes, would benefit the poorest households. But as Looney notes, this is like “assessing a homeowner’s wealth by counting their mortgage balance but not the value of their home.”
Looney estimates the value of households’ education investments—the increase in lifetime income attributable to the degrees their members hold. Before adding the value of education to household balance sheets, 53% of student debt is held by households in the bottom quintile of wealth. Afterwards, the share of student debt held by the poorest fifth drops to 8%. Households above the median wealth owe the vast majority of student debt.
The reasons are intuitive. The most lucrative degrees—in medicine, dentistry, and law—tend to be the most expensive. A young doctor with $200,000 in medical school debt looks destitute on paper. But medicine is one of the best-paid professions in the country, meaning the new doctor’s lifetime income prospects may vault him into the top 1%. By contrast, someone who never attended college has no debt, and so appears wealthier than the doctor on paper. But his lifetime income could be an order of magnitude lower.
Looney’s analysis makes it clear than mass student debt forgiveness is regressive. People who look poor on paper tend to have a lot of student debt because the asset they purchased—education—is not counted properly in official statistics, while the liability is. With proper accounting, there is no case for broad loan cancellation as an economic equalizer.
strataland
1 year ago
Let me get this straight, $300,000,000,000 divided by 125,600,000 US taxpayers = $2,388 per taxpayer. So, I am on the hook for $2,388 to forgive some unknown person’s $10,000 in unsecured student debt. Oversimplified, yes, but no less egregious.
As a general rule, if you subsidize something you get more of it. If you tax it, you get less of it.
If you want more qualified students in college, provide scholarships based on, and contingent on academic performance. Target particular fields if there is high demand and low supply. For example, too many bachelor’s degrees are awarded in forestry or marine science… given the number of jobs available. Stop rewarding bad decisions–like attending a snotty private school, getting a degree in the liberal arts, or trendy subjects.
I don’t know why gold doesn’t go up more in response to these spending increases.
Billy
1 year ago
A lot of privileged will benefit from this forgiveness.
Doug78
1 year ago
Congress will probably have vote on it and it clearly put the Republicans in a hot spot they don’t won’t to have but that’s politics. The US has forgiven large amounts of debts in the past starting with Lend-Lease, the German debt, many third-world debts as well as sundry loans that mutate into something you don’t have to pay back and this is just one more. Debt is a tool in the modern world and to use it wisely does not mean using it in only one way. In a macro level sometimes debt reduction can make sense as in during the pandemic. If there hadn’t been moratoriums on rents and debt payments we probably would have looting and social unrest that would have made the BLM riots look like Sunday school.
Perhaps someone knows this. Did the Fed buy lots of student debt during QE and if so could it be possible that a couple of hundred billion be shacked up in the Treasury and if so then if that couple of hundred billion are nullified (aka forgiven) then what effect would that have on the economy?
Generally I recognize that sometimes the government should loan money but the government should not be shylocking it.
Are you sure about that? The Fed did buy tons of corporate bonds during the crisis so what would have prevented them from accumulating student loans as well? The Fed even bought ETF’s and junk bonds at the time. Since the holders of the bonds would have needed money quick they certainly would have offered to sell them to the Fed.
The loans being forgiven aren’t for sale. If they were, there’s no way the forgiveness program would work. How could the gov’t cancel bonds held by 3rd parties? And you can easily look up treasury holdings.
If the loans had already been bought on the open market by the Fed during the crisis period and then stocked in the Treasury then in principle they can be cancelled and the student who owes the money no longer has to pay because by cancelling it the loan no longer exists. It’s like your rich uncle loans you money and you pay him interest but after a few years since he likes you he cancels the loan. Since he owns the loan he can do it and if the Fed already owns the student loan the Fed can cancel it if they so decide. Do you see what I mean?
Isn’t the Fed is QT-ing its MBS? I can’t imagine why? I mean other than rising interest rates, what could possibly go wrong?
TheWindowCleaner
1 year ago
There is no moral hazard in forgiving debt when a monopoly paradigm of DEBT ONLY as the sole form and vehicle for the creation and distribution of money reigns, has always reigned and has always been the deepest reason why the domestic economies of empires have ALWAYS been destabilized BY THAT MONOPOLY PARADIGM!!!!
China is going to eat out lunch until we integrate the new monetary paradigm into the DEBT ONLY system…and resolve inflation forever, make the “business cycle” so flat that its irrelevant and enable the kind of spending/investment we need to confront climate change. If we implement the new paradigm first we will become dominant again, but if China implements first we will really be in deep doo-doo…until we also do so…because everything and everyone adapts to a new paradigm…not the other way around.
Don’t be a terminally orthodox, blind and hence stuuuuuuuuuupid economic pundit! The new monetary paradigm changes EVERYTHING!!!
Maybe you should stick to window cleaning and skip economics. The current problems exist because the Fed incompetently managed the creation and distribution of money, and the Federal Government spent far more than it received in taxes.
I’m cleaning the doors of perception of the current monetary paradigm so that poor old guys like you don’t have to incorrectly compute via the orthodoxies of some long dead economic scribbler. Maaybe you should pay closer attention.
Like people, all social systems and institutions must evolve if they are to stay relevant. Clearly, there are problems with the current economic system; however, capitalism has been the superior economic system since humankind painted hands on cave walls. Communism failed (see China), and we are currently witnessing the welfare state in the process of failing. What you don’t seem to understand is destabilization may be a good thing–think of it as flushing the toilet. It gets rid of the crap quickly.
First destabilization is not any kind of virtue as it will ultimately result in chaos. Evolution is the positive form of change and that is exactly what the monetary and financial paradigm will accomplish. This misunderstanding about change is precisely why idiot psuedo-itellectuals like Steve Bannon advocate for “fourth turnings”. But we don’t need the chaos of collapse we need a true evolution economically, philosophically and ethically. We’ve had revolutions and the resultant chaos hundreds of times, virtually all of which are betrayed. Why? Because the powerful always take advantage of the confusion and chaos to take back control, and in this case that means the financial elites whose human civilization- long control of the monetary paradigm has always given them the power of economic survival…or economic death.
(NEWSER) – Tough times are ahead for China, the founder and CEO of the country’s largest private company warned employees in a memo seen as unusually candid. In the leaked memo, Huawei founder Ren Zhengfei said the technology company needs to make “survival” instead of growth its main focus for the next few years, the Guardian reports. “The next decade will be a very painful historical period, as the global economy continues to decline,” Ren wrote, citing issues including COVID restrictions, the war in Ukraine, and the “continued blockade” of some of its technology by the US and other countries.
“With survival the main principle, marginal businesses will be shrunken and closed, and the chill will be felt by everyone,” Ren said, according to financial news outlet Yicai.
Zhengfei is right, but if they’d adopt the new monetary paradigm they’ll probably be the only empire still standing. Light a candle instead of unconsciously groping around in the darkness.
I’ve been reading about the impeding collapse of China for 2 decades now. There are a lot of news outlets that have been pushing this narrative because they hate China. China has problems. Particularly in housing. But, I doubt it will lead to a collapse since the gov’t can just force completion of construction projects to solve it and fund a few banks.
New paradigms are always in complete conceptual opposition to the current one. That’s why you’re confused, not that I haven’t clearly explained the operation of the paradigm changing policy of a 50% discount/rebate at retail sale. Again, try responding authentically instead of just being cute.
Jmurr
1 year ago
What irritates me the most is that the debt forgiveness is not taxable as all other forgiveness are. If Biden can suspend the Internal Revenue Code in this instance, what is to stop him from raising tax rates by executive order.
Correct. Someone needs to stand up because increasingly the presidency is being used as a dictatorship in order to bypass congress and the senate to literally executive order everything.
Biden has already forgotten what he did yesterday. Tomorrow, he will fly an F-35 to the Arctic to check on the polar bears.
Captain Ahab
1 year ago
As bad as Biden’s latest f’up is, let’s talk about Pell Grants for a moment.
One of the largest recipients (in the top ten) of Pell Grant funds is… yes, you guessed it, the fabulous University of Phoenix, owned by Apollo Global Management. U-P is the top recipient of all private schools receiving Pell Funds–U-P picked up $197,213,991 in 2017-2018 (the latest data released by the Dept of Education–which is telling in itself)
RANKING: truly spectacular
386th out of 391 schools in the 2021 Washington Monthly list of national universities and #299 out of 391 in the 2022 edition of the U.S. News & World Report Best Colleges Ranking.
But, it gets better
The five-year default rate at U-P on student loans is…. 47%,WTF! with a graduation rate of 15%… yes, you read that right. Fk’n 15 PERCENT (to steal a phase from Brussels).
See, the problem is NOT student loans. IT is fraud, corruption, and incompetence in control of the universities. And students making very poor decisions for which they are not held accountable!!!!!!!!!!!!!!
Dr_Novaxx
1 year ago
Dear Mish,
I am encouraged by your concern for our Constitution. But I have to ask: Where were you (and others) when the Federales & corporations trampled the rights of the un-vaxxed?
Trump never affected my life in the negative way the Democrats are affecting lives. They are literally ruining everything from your savings down to your summer vacation. They have wrecked restaurant businesses, small Mom and Pop businesses and the US economy by saddling up to Fauci Cultism. Covid was no worse than Hong Kong flu in the 50s but no, we have the crater everything(which then Blackrock can pick up for pennies on dollar)
Dems are improving my savings by raising interest rates! Trump did affect everyone’s lives negatively but perhaps not at the minutia level that many focus on.
I think a lot of these folks just oppose Trump because “Orange Man Bad.” They don’t really know the reasons why, it’s just a fashionable thing to do…it give them a patina of intellectualism.
Agave
1 year ago
Oh yeah, corporate farmers too.
Ever see how much they get in free money subsidies?
Bill Gates is famous for hiring smart people to project scenarios about the future. Gates (likely with help from smart people) had predicted a pandemic, has been very vocal about climate change, and has been buying up farm land. Conspiracy theories aside, what can we learn from Gates’ action and where can we ride along or profit?
The fact he has been buying up farm land is indicative that famines are likely coming and he wants to keep his belly full. I bought shares of ADM to ride the coattails, we’ll see how that works out.
People have been predicting pandemics for decades before Bill Gates because pandemics have happened since time immemorial so if he needed experts to tell him that then he hasn’t read any history. He was probably not looking to save the world from hunger by buying land in ND. He was just probably looking for cheap land to buy because you have to do something with the money you are accumulating.
There is nothing like plain ole common sense, and a few facts.
Probability of a pandemic–I would’ve guessed about 1:30 to 1:40 (on a yearly basis), but I’m grade-1 pessimistic. It turns out to be 1:50.
“…. the probability of a pandemic with similar impact to COVID-19
is about 2% in any year, meaning that someone born in the year 2000
would have about a 38% chance of experiencing one by now. And that
probability is only growing,”
An argument can be made for ensuring domestic food supply being a matter of national security. It’ll make more sense in about 5 months when 25% of Europe is starving and/or freezing to death.
shamrock
1 year ago
The 2003 Heroes Act combined with the 2020 declaration of national emergency(it’s still in effect). It’s the same legal justification Trump used to suspend student loan payments.
“The HEROES Act allows the Secretary of the US Department of Education to
waive or modify any statutory or regulatory provisions relating to
Title IV student financial aid in times of war or military operation or
national emergency”
Applies to “People who reside or are employed in an area declared a disaster area by
any Federal, State or local official in connection with a national
emergency.”
That said, this is an absolutely horrible economic and public policy and I predict a 6-3 party line decision striking the loan forgiveness action down.
MPO45
1 year ago
“And right now, I don’t know who else is hurt by this.”
It’s a victimless crime so have at it. Biden should go all the way and forgive all student debt.
Smart kids are starting youtube channels and making millions. Others I know self-learn programming and get hired by big tech at 150k without a college degree. Yet others have no interest in working 9 to 5 normal job and prefer the gig economy where they set their hours and work when they want.
The college paradigm is dying and demographics won’t support all the universities anyway. I have a relative that works in recruiting for a university and they have been in a panic that there aren’t enough high school kids graduating.
On a personal level, I learn a great deal online with YouTube being a primary tool. It’s free, I can pause or fast forward and I can find virtually any subject from electrical work, plumbing, rental property management, partial differential equations to multi-dimensional stereographic projections to anything you can think of and more.
In a normal world I think we can all agree but we don’t live in a normal world anymore. The fiscal and monetary policy has gone so out of whack that we are in an episode of the twilight zone. Nothing makes sense anymore and we are just dog-paddling in an ocean of debt and muck.
I don’t blame anyone for having their hand out when so many hands have been getting free money for so long.
The National Center for Education Statistics tracks these things. I follow it to understand when these publicly traded education institutions will go broke so I can profit from their over extension. From 2010 to 2020 there was a 16.5% decline in enrollments, extrapolate that to 2030 and that number would be -33% but it won’t take that long to cause bankruptcy for some school.
Speaking of education or lack thereof, check out Chicago, IL…
=========
‘F*** Wirepoints’ Says Chicago Teachers Union When Confronted With Facts From The School District Itself – Wirepoints
August 23, 2022
By: Mark Glennon*
On August 5, Wirepoints’ Matt Rosenberg wrote about empty, failing Chicago Public Schools. The numbers we reported are truly astonishing but they are the school district’s own.
Mike Flannery of FOX 32 Chicago asked the Chicago Teachers Union to join his show to discuss the numbers along with Wirepoints’ Ted Dabrowski.
“F*** Wirepoints,” was the union spokesman’s answer to Flannery. He used the whole word and said his answer was on the record, according to Flannery. The spokesman added nothing more about the numbers and did not join the video segment, which is here at the 8:30 mark, wherein Flannery described the union’s response.
Is the union so confident in its political power that it can respond to legitimate issues in such a manner?
Is that how the union believes Chicago students should be educated to engage in discourse?
Where is the Chicago leadership to address the calamity in its public schools?
Where is the government of the State of Illinois that has full power to force reforms but shirks any responsibility?
Photo by Siora Photography on Unsplash
The numbers we reported almost defy belief. Of CPS’ 478 stand-alone “traditional” schools, one-third of them, 150, are less than half-full, according to the school district. The 20 most empty CPS schools are only 5% to 25% full and most have abysmal educational outcomes, with proficiency percentages in the single digits.
Manley High School has a capacity of 1,296 students but just 64 students are enrolled. There, 2% are proficient in reading and 1% in math. Just 44 students attend Douglas High School that has a capacity of 888 and their reading and math proficiency are both 0%. The list goes on.
CPS has already lost 100,000 students, or 25% of its enrollment, since 2000 and enrollment is projected to decline by tens of thousands more within a few years.
That’s in a school system that spends an astonishing $28,000 per student to cover the district’s operating, capital and debt costs, a spending number which has doubled since 2013, as we reported earlier.
It’s in a system that graduates 84% of its students though only about a quarter can read or do math at grade level.
And it’s in a system that rates the portion of its teachers as “proficient or excellent” at 100%. That’s correct, 100%.
Those numbers are real, as is the omnipotence of the Chicago Teachers Union, but how one of the world’s formerly leading cities could have let it come to this seems to defy reality.
Those assistant and associate deans actually do the work, and usually have faculty salaries with a small stipend. The Dean does very little and gets paid the big bucks.
The problem is judging quality. There are good and bad faculty at all levels, ditto for administration. With woke administration, faculty, and students, the right pronouns are more important than actual education. Scoring political points takes precedence over critical thinking….
Taxpayers are hurt. Just because they have no legal standing to sue Uncle Sam doesn’t make this victimless.
What’s going on here reminds me of what just happened with Kobe Bryant’s widow. She and the other family just got awarded 31 million from the LA county. Those 2 families are cheering and I bet many in LA are cheering without realizing they are the ones paying that 31 million. All the people of LA county are victims of that lawsuit award because that’s either 31 more million in taxes they pay or 31 million less in services they get.
The rest of the country is going to get 700 billion less due to this.
Illegal immigration is a victimless crime. So is voluntary prostitution. Ergo, the cartels on the southern border are not harming anyone.
radar
1 year ago
The persons with standing are the ones that paid off their loans. Shouldn’t there be some provision to provide them a refund or else it would be discriminatory?
RonJ
1 year ago
“Biden’s $705 Billion Student-Loan Forgiveness Is Unconstitutional”
Not to mention that it is an attack on our democracy.
ajc1970
1 year ago
I would think that any member of Congress has standing. Their power to appropriate (or not) has been usurped by the Executive.
Of course no Dem would even consider challenging this, so it’s a matter of the minority party standing up to do it. Most are all talk so I wouldn’t expect much. Maybe Rand Paul or Thomas Massie…
Democrats don’t want democracy. They want a technocracy, highly trained “experts” from the elite schools will run every aspect of your life for you because you are an uneducated deplorable, and therefore would only make mess of it.
Members of Congress prefer it this way so they don’t ever have to take a real position on anything.
LM2022
1 year ago
I have mixed feelings. I worked hard and paid off my student loans, so this seems a bit unfair to me that some people are going to get their debt canceled. On the other hand, over the past few years the Fed printed and passed out trillion$ to rich people and no-one batted an eye – that kind of socialism is perfectly acceptable it would seem.
“The truth is, after $6 trillion of Covid stimmies—most of which were
monetized by the Fed—there is no fiscal standards left in Washington at
all. And Donald Trump and the GOP were every bit as culpable as Biden.
More than 11.8 million Paycheck Protection Program (PPP) loans were
issued as of June 30, 2021, with 708 borrowers receiving the maximum
loan amount of $10 million.Yet of that massive outpouring of “loans,” the Small Business Administration (SBA) data shows that about 94% of PPP loans that were approved in 2020 had been forgiven as of December 2021!”
As the CARES Act directed the SBA to make ~8 payments on my existing 7A loan (amounting to about $45K) and give me a $10K EIDL grant, 2 forgivable PPP loans totaling about $140K and a $150K low-interest EIDL loan that will likely be forgiven some time in 2023, I took note that student loan borrowers got… deferred payments and a hold on interest accrual…
It dawned on me that the grift from all these bad ideas isn’t divided fairly. Then again, if it were, what would be the point of it?
If you didn’t need the PPP loans why did you apply for them and accept the money? The purpose of the PPP was to keep businesses solvent who otherwise would’ve been bankrupted by that same gov’t’s COVID shutdown decrees and to keep paychecks going to those who would’ve otherwise been bankrupted themselves.
You’re making a number of presumptions about my PPP loans.
I took them out because I was forced to close my doors for 10 months in Oregon (and then the conditions to reopen just didn’t make it profitable to reopen for another 12 months beyond that).
I paid out 40% of my PPPs to employees who were staying home and 40% to landlords who insisted that I pay them rent even though I couldn’t open my stores. Why they hell wouldn’t I use the program that was created to alleviate the pain of that situation?
Lots of things shouldn’t have happened… govt shouldn’t have forced shut private businesses, govt shouldn’t have created the PPP or PUA, and govt shouldn’t have forgiven student loans.
I took the PPP because I play the hand I’m dealt, not the hand I should have been dealt.
Tony Bennett
1 year ago
I may be in the minority here. But I think the inflationary aspect past tense … when spent. Not now. Why? It has been over 2 years since deferment began … and student loan borrowers been busy spending that money elsewhere. For those getting forgiveness nothing more than permanent deferment.
Disinflationary on 2 counts. 1) Everyone else has to start paying something first of year (or risk credit score degradation at least) 2) Burden shifted to federal debt. Ever more $$s needed to service existing debt at expense of current spending. And with Federal Reserve (for now) shrinking balance sheet …
Agave
1 year ago
The average PPP loan forgiven was over $70,000.
Right wing extremist nuts Madge Taylor Green and Matt the molester Gaetz each had six figures forgiven. $180 K for MTG.
In a sovereign fiat monetary system the federal deficit is an irrelevant fiction. It’s simply a form of prestidigitation that (irrationally) turns money INTO DEBT and benefits virtually ONLY THE PRIVATE BANKS WHO BUY THE GUARANTEED DEBT. Debts owed to oneself (the people of the USA) AREN’T DEBT AT ALL!!!!!!!!!
A 50% Discount/Rebate policy at retail sale implements the new monetary paradigm. If you’re a conservative, libertarian or some other economic pundit you’ll love the new paradigm. Don’t be an old fool.
“In a sovereign fiat monetary system the federal deficit is an irrelevant fiction.”
…
Not so.
You are ignoring the currency component. In our fiat world strength of currency set in open market. $US THE reserve currency on planet … so gets a lot of leeway. But if US wants to spend recklessly from here on out, the open market will determine the penalty (if any).
Only if creating that money causes inflation. If it in fact macro-economically effects BENEFICIAL PRICE AND ASSET DEFLATION (instead of painful deflation like the orthodox libertarians want to force on us unnecessarily) then there is nothing reckless about it at all. In fact it benefits all economic agents individual and commercial…except the private banks who benefit from the (MONOPOLISTIC) paradigm of DEBT ONLY.
KidHorn
1 year ago
How did roe v wade make it to the supreme court? Didn’t Mississippi sue over something? Can’t a state sue over grounds that it will effect federal subsidies to the state since it will effectively lower tax collection by $700b?
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The three places with the largest average balance are Washington D.C. , Maryland, and VirginIa. It almost gives the appearance of self-dealing, but thank god its just a coincidence.
Highest Average Student Loan Debt per Borrower
Washington, D.C. ($55,508)
Maryland ($43,619)
Georgia ($42,207)
Virginia ($39,892)
South Carolina ($38,915)
“I don’t see R-leaning voters in those two states cutting off their noses to spite their faces and either voting a different party”In their shoes, I would suck it up and vote for Oz and Walker, but my hatred of what the Democrats have become is the driving factor for that, not loyalty to the GOP or Trump.Not every non-partisan shares my feelings. They’ve certainly driven away swing voters by nominating those two.
(NEWSER) – Tough times are ahead for China, the founder and CEO of the country’s largest private company warned employees in a memo seen as unusually candid. In the leaked memo, Huawei founder Ren Zhengfei said the technology company needs to make “survival” instead of growth its main focus for the next few years, the Guardian reports. “The next decade will be a very painful historical period, as the global economy continues to decline,” Ren wrote, citing issues including COVID restrictions, the war in Ukraine, and the “continued blockade” of some of its technology by the US and other countries.
“With survival the main principle, marginal businesses will be shrunken and closed, and the chill will be felt by everyone,” Ren said, according to financial news outlet Yicai.
is about 2% in any year, meaning that someone born in the year 2000
would have about a 38% chance of experiencing one by now. And that
probability is only growing,”
waive or modify any statutory or regulatory provisions relating to
Title IV student financial aid in times of war or military operation or
national emergency”
any Federal, State or local official in connection with a national
emergency.”
monetized by the Fed—there is no fiscal standards left in Washington at
all. And Donald Trump and the GOP were every bit as culpable as Biden.
issued as of June 30, 2021, with 708 borrowers receiving the maximum
loan amount of $10 million.Yet of that massive outpouring of “loans,” the Small Business Administration (SBA) data shows that about 94% of PPP loans that were approved in 2020 had been forgiven as of December 2021!”