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College debt bubble mimics housing bubble
Poast new message in this thread
Date: May 11th, 2013 11:30 PM Author: vermilion costumed native http://m.usatoday.com/article/news/2151555 (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23180683) |
Date: May 12th, 2013 12:43 AM Author: vermilion costumed native (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181119) |
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Date: May 12th, 2013 12:46 AM Author: sepia stead headpube har har we're screwed (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181141) |
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Date: May 12th, 2013 12:46 AM Author: fragrant wagecucks wrinkle what happens when the bubble bursts? (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181144) |
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Date: May 12th, 2013 12:48 AM Author: self-absorbed hairraiser brunch shitlib In theory it should have the opposite effect.
People's net worth was tied up in their houses. When the housing prices crashed, so did their ability to spend.
However, once student death GOES BOOM, our income will be freed up. Blow it up! |
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Date: May 12th, 2013 12:49 AM Author: fragrant wagecucks wrinkle So if you have debt, you want this bubble to reach absolute insolvency so the govt. has to intervene? (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181165) |
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Date: May 12th, 2013 12:52 AM Author: sepia stead headpube the same thing that happens with all govt backed credit bubbles. the very people the policy was intended to help get screwed the most.
basically the rich come out unscathed.. the middle and lower class will either be debt slaves and/ or education will be inaccessible.
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Date: May 12th, 2013 1:10 AM Author: Clear exciting den education being inaccessible doesn't sound that bad. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181342) |
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Date: May 12th, 2013 12:47 AM Author: spectacular insanely creepy hell pozpig unfortunately in in the housing bubble you had real assets at the end of the line, not just debt. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181152) |
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Date: May 12th, 2013 12:50 AM Author: Floppy khaki milk trailer park it's pwning the economy. wealth transfer to boomers. people can't buy starter homes, cars, get married, have children, even rent decent urban places. gas all boomers. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181178) |
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Date: May 12th, 2013 12:52 AM Author: Sooty outnumbered voyeur hasn't the housing market already recovered, though? there are actually price spikes/inventory shortages in the phoenix area again, which is certainly saying something. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181201) |
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Date: May 12th, 2013 12:59 AM Author: Floppy khaki milk trailer park that has nothing to do with young people buying houses. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181273) |
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Date: May 12th, 2013 1:01 AM Author: Sooty outnumbered voyeur point is, the participation of youngs no longer seems required to keep housing prices on the increase. investment pools, foreign buyers, and wealthy boomers are getting the job more than done. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181291) |
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Date: May 12th, 2013 1:03 AM Author: Floppy khaki milk trailer park i'm sure that is one possible point that you can make about the "job being done" but it has a lot to do with boomers and scammers; but this has little to do with my point which is understood to be a - perhaps - THE- major issue our generation, and the united states faces. I think the real point here is that you should never tell me what the point is you fucking cocksucker. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181306) |
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Date: May 12th, 2013 1:04 AM Author: Sooty outnumbered voyeur you need to think about this more cynically. you are bemoaning the plight of youngs, and noting that they are fucked trying to buy houses and so on.
i am noting that boomers are such a self-indulgent and non-introspective group that unless the economy whacks them in the groin, they will pay you no mind whatsoever, even if your generation has to live in gutters and eat rats. |
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Date: May 12th, 2013 1:02 AM Author: excitant mauve patrolman business firm Yeah, but the Phoenix area was like the fastest growing metro before ITE, so it's hardly some great victory for that market to have recovered. What about the rest of the country?
And it was REITs who swallowed up the Phoenix/Las Vegas/SoCal starter home inventory - what happens if they decide to cash in? |
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Date: May 12th, 2013 12:51 AM Author: Racy mad cow disease bawdyhouse The issue with the housing/mortgage bubble was that the banking system/financial intermediaries had huge exposure. A blowup in asset value isn't necessarily dangerous, people typically point to 1987 and 2001 as evidence of this. Banking system had minimal exposure to equities/tech (durr) and ended up doing perfectly fine. Minor recession or no recession, nbd.
I think student loans are more like that, except the debt is non-dischargable. There also isn't nearly the same level of wacky structured bullshit. No student loans--->student loans backed securities--->CDOs, no SIVs, no CDO tranches as collateral in overnight lending etc.
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Date: May 12th, 2013 12:54 AM Author: Sooty outnumbered voyeur there are actually SLABS (student loan asset-backed securities). (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181223) |
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Date: May 12th, 2013 12:56 AM Author: Racy mad cow disease bawdyhouse oh i'm sure, but the size of the market isn't remotely similar in size to MBS in the mid 2000s. and vanilla MBS isn't even all that bad, it underperformed but not catastrophically. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181241) |
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Date: May 12th, 2013 12:56 AM Author: sepia stead headpube this.. basically bundling not unlike the subprime fiasco (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181244) |
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Date: May 12th, 2013 12:58 AM Author: Floppy khaki milk trailer park remember the shit boomer from SUNY was bragging how suny was an economic driver in upstate new york? yes. an economic stimulus provided by an entire generation who needs to pay usurious rates PERSONALLY to provide secure jobs for older people. i want to gas them so bad. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181257) |
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Date: May 12th, 2013 1:04 AM Author: hilarious toaster principal's office LOLOLOL 180 (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181309) |
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Date: May 12th, 2013 1:13 AM Author: Motley mental disorder market SUNY is dirt cheap in state.
The univ of Rochester, Hamilton, Colgate, union, Syracuse, etc are the real offenders. |
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Date: May 12th, 2013 12:55 AM Author: blathering sweet tailpipe tbf, that's a usa today article. (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#23181232) |
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Date: May 12th, 2013 1:48 AM Author: Mustard fortuitous meteor Here is some shit that isnt in a USA today article:
In some jurisdictions, mega TTT law schools can issue municipal bonds. These muni bonds are rated highly, tax free ETC but here is the rub: Most of the dudes on this board know that the TTT's are going to close and without a stream of new people to scam - they are going to shut down and will probably default. I think I remember encountering a California Southwestern Muni Bond as an example of the quality of the institution, as the way low ranked ones will be the first to go obviously.
IF someone can buy CDO's on these, also on SLABS (if they are school specific and not bundled in a different way) you can get in on this trade when its cheap. |
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Date: September 7th, 2013 6:30 PM Author: Avocado location coldplay fan (http://www.autoadmit.com/thread.php?thread_id=2253708&forum_id=2#24009961) |