No way out for Uncle Sam

Discussion in 'Economics' started by mutluit, Jun 23, 2013.

  1. mutluit


    No way out for Uncle Sam

    "Bond Losses of $1 Trillion if Yields Spike, BIS Says
    Bondholders in the United States alone would lose more than $1 trillion if yields leap, showing how urgent it is for governments to put their finances in order, the Bank for International Settlements said on Sunday.
    The BIS, a grouping of central banks, was one of the few organizations to foresee the global financial crisis that erupted in 2008.


    "House of Representatives Speaker John Boehner urged President Barack Obama on Thursday to push Democrats in Congress to back a move to switch student loan interest rates to a market-based system before they double on July 1.

    Rates on federally backed student loans are to rise to 6.8 percent from 3.4 percent unless Congress acts. Instead, lawmakers have been engaged in partisan squabbling that is expected to end in a last-minute resolution.
    Student loan debt in America exceeds $1 trillion, with the average borrower owing $27,000. Higher rates, lawmakers say, will only increase the debt burden on borrowers.

    A commentator there writes:

    "According to the numbers in this article, $1 trillion in active loans with an average balance of $27K, that makes over 37 million people in this country with student loans. That is equal to more than 25% of all people that voted in the 2012 presidential election! Or more than 50% of the people that voted for Obama!

    37 million people with student loans, that's almost as many people as there are on foodstamps!

    37 million people with student loans, that's nearly 3 times more people than there are collecting unemployment benefits!
  2. How many student loans are variable rate vs fixed?
  3. piezoe


    This is what leaped of the page--

    "Among all bachelor's degree recipients, median debt was about $7,960 at public four-year institutions, $17,040 at private not-for-profit four-year institutions, and $31,190 at for-profit institutions. (Source: College Board)"

    italics mine.

    It is easy to distort reality if your political agenda requires it.
  4. Eight


    Letting interest rates float is a good opportunity to raise some revenue for the Public Sector really.
  5. Op seems basically expecting the worst at all times. Must not drive or travel on airplanes because he/she would be concerned about crash statistics. I liked the one where they state Dell buying up his own company is some sort of scam.