Cancel student debt

[Eldon]

We are aware of all of this. We've been keeping up to date on it and making sure every i lower-case j is dotted and t is crossed. In the end, it will likely be moot if it gets taken off the books entirely.

[Lennys Tap]

Question.... how many of you can explain the concept of "moral hazard" without a Google?

I hope the "cancelling student loans is just like allowing people to declare bankruptcy" crowd are just ignorant of the concept. I say hope because the alternative is really scary.

[MUBurrow]

Question.... how many of you can explain the concept of "moral hazard" without a Google?

I hope the "cancelling student loans is just like allowing people to declare bankruptcy" crowd are just ignorant of the concept. I say hope because the alternative is really scary.

[warriorchick]

It never ceases to amaze me how financially ignorant even many highly intelligent people are.

I was recently involved in a discussion on whether it was better to give out raises or bonuses to employees.  There are several arguments each way, but I had someone insist that the main reason raises are better is because you pay more income tax on a bonus than on a salary increase.  I could not convince this person otherwise.

[MUBurrow]

It never ceases to amaze me how financially ignorant even many highly intelligent people are.

I was recently involved in a discussion on whether it was better to give out raises or bonuses to employees.  There are several arguments each way, but I had someone insist that the main reason raises are better is because you pay more income tax on a bonus than on a salary increase.  I could not convince this person otherwise.

Yeah that doesn't make any sense. 

The biggest disconnect on fiscal policy is the way that we load so many different subjective judgments into what should be a fairly objective analysis.  Taking a step back, I don't think that cancelling student debt is inherently a more shriek-inducing step than a lot of the other fracked up, nonsensical economic policies we already have.  But the enemy you know, eh? That's certainly not a reason to just go ahead and do it, but I think it would only be about a 6/10 on the "this is Americuh" moral outrage scale.

[Benny B]

I hope the "cancelling student loans is just like allowing people to declare bankruptcy" crowd are just ignorant of the concept. I say hope because the alternative is really scary.

Slightly on an off but similar note, I am a strong advocate of requiring colleges and universities to carry a percentage of student debt on their own balance sheet (something in the order of 5-10%) and - under certain circumstances - allowing discharge of student loans in bankruptcy.  IOW, moral hazard goes both ways.... put a portion of the student debt risk on the institutions and watch how fast student loan defaults will plummet.

As it stands, colleges and universities keep spending more and more and pay for it by charging the students more and more because they know they the students can simply keep borrowing more and more.  That cycle - well not really a cycle as a spiral - needs to stop.

[warriorchick]

Slightly on an off but similar note, I am a strong advocate of requiring colleges and universities to carry a percentage of student debt on their own balance sheet (something in the order of 5-10%) and - under certain circumstances - allowing discharge of student loans in bankruptcy.  IOW, moral hazard goes both ways.... put a portion of the student debt risk on the institutions and watch how fast student loan defaults will plummet.

As it stands, colleges and universities keep spending more and more and pay for it by charging the students more and more because they know they the students can simply keep borrowing more and more.  That cycle - well not really a cycle as a spiral - needs to stop.

I thought I heard at one point that universities had an "account" with the US Govt that student loans to their school were funded, and repayments of those loans went back to their account.  That way, the schools were incentivized to churn out students that could actually pay them back.

Either I was misinformed, or the rules changed, because there is no way those crappy for-profit schools would have survived under that model.

[WarriorDad]

Do you have any qualms with the fact that it's your generation that led our nation to this political climate?

My generation?  Those are broad strokes.  Technology did some of it.  The marketplace tends to fill voids.  In my view the 24/7 news cycle has been terrible for the political climate.  Social media, not part of my generation, has made it even worse.  We are more siloed than I can remember, the middle doesn't really exist and the news is delivered to a targeted audience accordingly. 

Let me give you some examples. I can watch CNN and MSNBC and find very little on a strong economy.  Very little on the war against terror.  Some of this is because we have a buffoon as President that drives the news, but I have a game I play.  Insert Biden for Trump, and how would the news react?  Differently?  Yes, and it is pronounced. 

I can watch Fox, and the reverse happens.  One finds very little on the Mueller investigation, sexual scandals by Trump (much like MSM did with Clinton).   As a result, people retreat to their areas of comfort. 

I noticed the Washington Post article with 20 years of data showing the left becoming more liberal, the right becoming more conservative as I have seen in my life, was not commented at all.  Instead attacks.    This was caused by my generation?  Are people of all generations not involved in the political climate of today?  My opinion, you comment is broadstrokes and doesn't properly capture how people have been divided by politicians, technology, corporations and it has been done on all sides.

[jesmu84]

My generation?  Those are broad strokes.  Technology did some of it.  The marketplace tends to fill voids.  In my view the 24/7 news cycle has been terrible for the political climate.  Social media, not part of my generation, has made it even worse.  We are more siloed than I can remember, the middle doesn't really exist and the news is delivered to a targeted audience accordingly. 

Let me give you some examples. I can watch CNN and MSNBC and find very little on a strong economy.  Very little on the war against terror.  Some of this is because we have a buffoon as President that drives the news, but I have a game I play.  Insert Biden for Trump, and how would the news react?  Differently?  Yes, and it is pronounced. 

I can watch Fox, and the reverse happens.  One finds very little on the Mueller investigation, sexual scandals by Trump (much like MSM did with Clinton).   As a result, people retreat to their areas of comfort. 

I noticed the Washington Post article with 20 years of data showing the left becoming more liberal, the right becoming more conservative as I have seen in my life, was not commented at all.  Instead attacks.    This was caused by my generation?  Are people of all generations not involved in the political climate of today?  My opinion, you comment is broadstrokes and doesn't properly capture how people have been divided by politicians, technology, corporations and it has been done on all sides.

I was simply referring to your generation being the current who are the heads of the organizations, government, etc. They are the ones setting the rules and deciding how to play the game, currently. Most of the things you mention are tools that are used.

Agreed that both sides do it. But I don't believe both sides do it equally.

[Hards Alumni]

My generation?  Those are broad strokes.  Technology did some of it.  The marketplace tends to fill voids.  In my view the 24/7 news cycle has been terrible for the political climate.  Social media, not part of my generation, has made it even worse.  We are more siloed than I can remember, the middle doesn't really exist and the news is delivered to a targeted audience accordingly. 

Let me give you some examples. I can watch CNN and MSNBC and find very little on a strong economy.  Very little on the war against terror.  Some of this is because we have a buffoon as President that drives the news, but I have a game I play.  Insert Biden for Trump, and how would the news react?  Differently?  Yes, and it is pronounced. 

I can watch Fox, and the reverse happens.  One finds very little on the Mueller investigation, sexual scandals by Trump (much like MSM did with Clinton).   As a result, people retreat to their areas of comfort. 

I noticed the Washington Post article with 20 years of data showing the left becoming more liberal, the right becoming more conservative as I have seen in my life, was not commented at all.  Instead attacks.    This was caused by my generation?  Are people of all generations not involved in the political climate of today?  My opinion, you comment is broadstrokes and doesn't properly capture how people have been divided by politicians, technology, corporations and it has been done on all sides.

Isn't it easier to just say, "Hi my name is Jamie, and I have an unhealthy obsession with muscoop."? 

[WarriorDad]

I was simply referring to your generation being the current who are the heads of the organizations, government, etc. They are the ones setting the rules and deciding how to play the game, currently. Most of the things you mention are tools that are used.

Agreed that both sides do it. But I don't believe both sides do it equally.

Again, broad strokes.  There are people of all ages that are heads of organizations, government agencies.  Some are my gen, some are Gen X, some Xenniels,  and now even some Gen Y creeping in.

Once we start to die off and leave our money to our kids, we will be loved again.  Ha ha

[jesmu84]

Again, broad strokes.  There are people of all ages that are heads of organizations, government agencies.  Some are my gen, some are Gen X, some Xenniels,  and now even some Gen Y creeping in.

Once we start to die off and leave our money to our kids, we will be loved again.  Ha ha

Truth! 

[Eldon]

Trump Administration Looking at Bankruptcy Options for Student Debt

WASHINGTON—The Trump administration indicated Tuesday it is considering allowing more Americans to erase student debt in bankruptcy.

https://www.wsj.com/articles/trump-administration-looking-at-bankruptcy-options-for-student-debt-1519146215

________

The White House reads Scoop, apparently.