Student loan debt

[Charles West]

Makes no difference, if 4-5 million don't take bankruptcy and start paying their student loans, it will shrink the money supply on where else they can spend that money unless they take bankruptcy.

Hence it shrinks the money supply or M2 as you phrase it.

What you are trying to say is that paying back the debt will reduce those individuals' consumption levels. On the flip side, the note holder will receive payment and be free to reinvest or consume.

 

[Zoe]

What you are trying to say is that paying back the debt will reduce those individuals' consumption levels. On the flip side, the note holder will receive payment and be free to reinvest or consume.

Depending. If a person takes straight bankruptcy like your mentor, the debt is erased. The note holder loses which again shrinks money supply.

 

[Charles West]

Depending. If a person takes straight bankruptcy like your mentor, the debt is erased. The note holder loses which again shrinks money supply.

No, it doesn't. If the borrower defaults, the taxpayer assumes the debt. That means you.

 

[Zoe]

But yes Charles on your first question. $1.7 trillion is nothing to sneeze at on money a person can spend on consumption levels.

 

[Zoe]

No, it doesn't. If the borrower defaults, the taxpayer assumes the debt. That means you.

That happened in bailout when your mentor handed out free money in COVID. Banks went broke.

Not all banks went broke. Many were very conservative lenders and had huge capitol accounts and needed no bailout.

I can name you the list if you give me time of how many players in the chain went broke. gses are one.

Yes to your point, taxpayer bailed them out. Elon Musk didn't do it.

 

[Charles West]

But yes Charles on your first question. $1.7 trillion is nothing to sneeze at on money a person can spend on consumption levels.

People in that age group are not big consumers to begin with.

 

[Zoe]

Elonnie and Donnie don't have enough money. The taxpayer does.

 

[Surf Cat]

The students that signed on the bottom line chose poorly in regards to what field of Education they went in.... that, or they went to too many frat parties. Now the bill is due, they're a waiter or waitress at Joe's Crab Shack with no high paying jobs that they studied for in their field of study.

Meh....just file BK.... the president of the United States has, several times. It's okay. Besides, they need a new iPhone and flat screen TV.

 

[Zoe]

People in that age group are not big consumers to begin with.

Not true. BTW any consumer is a consumer in money supply to GDP.

 

[Charles West]

Another reason to downsize the federal government. Guaranteed loans with no standards are ripe for disaster.