The LA Times is out with this story about rising student loan default rates.The more money Bernanke prints the more price inflation, which will make it much easier for his son to pay off his debt.
The article is here
I mention it because buried at the bottom is this rather telling anecdote about Bernanke's son (emphasis mine):
Bernanke, in his exchange with lawmakers, added a personal dimension to the student loan issue, saying that his son in medical school was expecting to owe $400,000 when he graduates.
Yowza! This can only add to Bernanke's desire to print.
Tuesday, March 6, 2012
Another Reason Why Bernanke May Print and Print
Joe Nelson makes this observation in the comments:
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Im gonna need a lot of price inflation to pay off my student loans.
ReplyDeleteThe link is not working.
ReplyDeleteCorrect link: here
ReplyDeleteor here:
http://www.latimes.com/business/money/la-fi-mo-student-loan-delinquencies-20120305,0,3862067.story
Well, at least his son chose a different profession than money printing.
ReplyDeleteBen there, printed that
ReplyDeleteUnfortunately for the young Dr Bernake in training, Price inflation is only going to make his Medical Student debt worse. As medical reimbursement rates are strictly controlled by the government and their insurance cronies follow suit, real wages for physicians will only continue to decline as they have for the last 30 years. Escalating costs for medical practices will only further erode incomes. As Medicare and Medicaid are major liabilities to the government, they will continue to make sure Doctor's reimbursements are strictly capped.
ReplyDeleteDon't forget that nearly all student loans have variable interest rates. As inflation hits, the compounding affect of these increasing interest rates will outpaced the currency devaluation.
ReplyDeleteBeing a plumber just ain't what it use to be. Ben Jr. should have went to plumber school
ReplyDeleteStudent loans will be inflated away with the rest of the debt owed by the govt. Inflation wont help his real income but it will extinguish his debt very quickly. Dad to the rescue.
ReplyDeleteWhy would a supposed expert on all things financial allow his son to get this deep in debt? Does anyone ever say "I can't afford to go to that college"? Does he get no support from his dad? Seems like Dad could certainly afford to pitch in.
ReplyDeleteIf everyone who could not afford school would quit taking loans they can never pay, I suggest tuition would quickly drop. What the market will bear.