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Student-Debt Overhang Is Pushing Down U.S. Rates, Dudley Says
Bloomberg Markets ^ | ‎April‎ ‎3‎, ‎2017‎ | Matthew Boesler

Posted on 04/05/2017 9:31:22 AM PDT by Wally_Kalbacken

The rising burden of student debt is weighing on interest rates in the U.S., and it would be a “reasonable conversation” for policy makers to explore making college tuition free, Federal Reserve Bank of New York President William Dudley said.

The growing pile of student debt is “obviously one headwind to economic activity” that “probably pushes in that direction of lower equilibrium real rates” because it limits households’ spending power, Dudley said Monday during a press briefing in New York.

(Excerpt) Read more at bloomberg.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Government; Politics/Elections
KEYWORDS: debt; studentloan; subsidy
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To: Wally_Kalbacken

Despite Trump’s election, I do expect some very Socialist things to happen in this country over the next decade or so.

One is student loan forgiveness. I think the political pressure is just going to be too much for either party to resist. It could very well make or break the next election. The real estate industry and auto industry will be chiming in too, wishing to free-up disposable income for Millenials to buy cars and houses.

Another is single payer healthcare. Apparently it’s Mission Accomplished for Obamacare....break the existing system beyond all hope of repair. Even anecdotally I am running across more and more people who are now starting to tell me that “perhaps that Canadian system would not be so bad.”

Another is removing the income cap on FICA taxes to continue to fund Social Security. They’ve got to keep the game of Three Card Monty going, and that one will be popular with the masses.


21 posted on 04/05/2017 10:32:00 AM PDT by Buckeye McFrog
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To: Wally_Kalbacken; All

If it’s dischargeable in bankruptcy and the government isn’t unconstitutionally involved then the education system follows the market. If you’re wanting to study transgenderism and underwater fire prevention with a 2.2 GPA you’re going to rate a $1000 loan at 18% interest and if you want to study novel materials engineering with a 4.0 GPA you’re going to rate a $50,000 loan at 5%...

It’s not effin’ rocket science, it’s crooks trying to figure out how to pass something that will shut the idiot electorate up while keeping the wheels on the gravy wagon on for just a bit longer. That the FED can have a person at its governing body stupid enough to think free tuition would “work”, OR who holds the citizenry in enough contempt that they are willing to ignore their fiduciary duty to try to pass shit like this off on them is mind boggling.


22 posted on 04/05/2017 11:06:33 AM PDT by Axenolith (Government blows, and that which governs least, blows least...)
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To: Axenolith

the Dept. OF Education should regulate the higher education industry. Cap tuition at $10,000/yr. Big Education™ has been asking for it.


23 posted on 04/05/2017 11:11:55 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Axenolith

You got it. Chapter 7 here they come. Problem solved.


24 posted on 04/05/2017 11:11:59 AM PDT by VietVet876
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To: nitzy

“Make the educational institution the co-borrower of every loan.”

Any wise college would make admissions based on family income and size of the 529. Poor kids wouldn’t stand a chance in school.
There is no such thing as a co-borrower. The student could walk away and the uni has to pay the bill.
Here’s an idea: Tell the kids not to borrow the money. Done.


25 posted on 04/05/2017 11:18:58 AM PDT by AppyPappy (Don't mistake your dorm political discussions with the desires of the nation)
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To: AppyPappy

Funny how THE most leftest institution in the USA, higher education, has no government regulations on it at all.


26 posted on 04/05/2017 11:22:19 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Wally_Kalbacken

This is how Obamacare seems like it will be paid for.


27 posted on 04/05/2017 11:29:25 AM PDT by Organic Panic (Flinging poo is not a valid argument)
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To: central_va

It is largely a government institution.
Let me introduce you to something called Title IX


28 posted on 04/05/2017 11:32:06 AM PDT by AppyPappy (Don't mistake your dorm political discussions with the desires of the nation)
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To: AppyPappy

cap tuition.


29 posted on 04/05/2017 11:33:06 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Most state schools are already under that limit. But you may as well cap mortgages and car loans as well. Also outlaw car leases and large sodas. You have to protect people using the heavy hand of government.

I’m not a big fan of saving stupid people from themselves.


30 posted on 04/05/2017 11:38:00 AM PDT by AppyPappy (Don't mistake your dorm political discussions with the desires of the nation)
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To: AppyPappy

In this case there needs to be regulations. We off shored most of our decent blue collar industrial jobs so now college is now a necessity. You are living in the past.


31 posted on 04/05/2017 11:51:28 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: grania

To end the student loan industry as we know it the Federal Reserve would simply stop providing money for the banks to lend out. Existing loan balances would still have to be paid off but there’d be no more new loans.


32 posted on 04/05/2017 11:53:38 AM PDT by MeganC (Democrat by birth, Republican by default, conservative by principle.)
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To: central_va

“the Dept. OF Education should regulate the higher education industry.”

Did you lose your way? The DU is over here:

http://www.democraticunderground.com/


33 posted on 04/05/2017 11:56:06 AM PDT by MeganC (Democrat by birth, Republican by default, conservative by principle.)
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To: central_va

Why does there need to be regulation? To protect people from themselves.
I got a college degree for free as did many of my coworkers. If you spend two years in a community college and then work for 2 years while going to school, you will come out debt-free.

But Nooooo....kids want to join a fraternity for $1000 a year and eat at the steak place on campus while buying season tickets for football and basketball games. They won’t attend some boring old community college.


34 posted on 04/05/2017 11:57:36 AM PDT by AppyPappy (Don't mistake your dorm political discussions with the desires of the nation)
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To: central_va

“Funny how THE most leftest institution in the USA, higher education, has no government regulations on it at all.”

That is the most untrue thing I’ve seen on the web today.

https://www.google.com/?gws_rd=ssl#q=us+education+regulations&*&spf=68


35 posted on 04/05/2017 11:58:01 AM PDT by MeganC (Democrat by birth, Republican by default, conservative by principle.)
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To: Wally_Kalbacken

In order to implode the system, we should all maintain skills, but quit our jobs and “go on the system” to bankrupt the system. This is more strategic then say a “hot” fight with the bumbling beast.


36 posted on 04/05/2017 12:19:50 PM PDT by rollo tomasi (Working hard to pay for deadbeats and corrupt politicians.)
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To: nitzy

.........it would take an act of god to make this happen but it is an outstanding idea that should be adopted!


37 posted on 04/05/2017 12:46:07 PM PDT by Cen-Tejas (it's the debt bomb stupid)
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To: AppyPappy
There is no such thing as a co-borrower.

There is absolutely such thing as a co-borrower. It is another entity that would benefit by the the primary entity receiving a loan. Often times the co-borrower is a family member who would benefit from happiness at seeing their son/daughter/wife with a loan. Other times it is a government entity who benefits by having certain of their citizens receive certain types of loans. Other times it is business partners who rely on the the primary party and will benefit financially if they receive a loan.

In this case it would be a college who is benefiting from tuition money that otherwise wouldn't be coming in.

The student could walk away and the uni has to pay the bill.

Why would a kid who has been properly educated and has obtained a useful degree decide to walk away from a loan and ruin their credit?

38 posted on 04/05/2017 1:10:42 PM PDT by nitzy
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To: nitzy

There is no co to it. You borrowed the money and gave it to someone else. If you are lucky, they pay for it. There is literally no difference legally between co-signing a loan and taking out a loan yourself.

“Why would a kid who has been properly educated and has obtained a useful degree decide to walk away from a loan and ruin their credit?”

Because they know the co-signer(the uni) will pay it to keep from ruining their credit. So it is essentially free money. The bank won’t ding their credit so long as the loan gets paid off by someone.


39 posted on 04/05/2017 1:16:12 PM PDT by AppyPappy (Don't mistake your dorm political discussions with the desires of the nation)
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To: central_va

College is a necessity because government meddling got rid of the ability of employers to test prospective employees with respect to their area of employment so the default denominator for a job applicant at many locations is “do you have a college degree” in order to qualify as a latte foamer or toilet cleaner.


40 posted on 04/05/2017 1:44:45 PM PDT by Axenolith (Government blows, and that which governs least, blows least...)
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