Monday, November 18, 2013

All of a Sudden Students Have Stopped Paying Their Loans, Again

The Atlantic reports:
The first six months of 2013 brought us a small measure of good news about student loans: the delinquency rate, while still far too high for comfort, was falling.
Sadly, that's no longer the case. As shown on the graph below, the Federal Reserve Bank of New York reports that 11.8% of outstanding loan balances were 90 days or more past due by the end of September, a new post-recession high.  


  1. And this doesn't include people who are using the repayment program who are unemployed whose monthly payment is $0.

  2. better print more money or this could get out of hand!

  3. Liberalism was the age of investment choice where schemes of credit and currency carry trade investment that rewarded investors with great moral hazard based prosperity opportunities. For example student loan financier SLM Corp, SLM, that is Sallie Mae, is a publicly traded organization which originates, services, and collects on student loans; it rose 350% in value since the 2008 Financial Collapse, as is seen in its ongoing Yahoo Finance Chart. In its financialization and securitization of student loans, it has acquired a Long Term Debt to Equity Ratio of 27.94. During liberalism’s grand finale pursuit of yield rally that commenced in July 2013, SLM, rose 18% outperforming the S&P 500’s 9% rise. It turned 0.7% lower on the day, after having manifested a blow off market top in its chart pattern. The fall of this giant of liberal credit will be truly stunning. And somebody is going to be stuck with a whole bunch of worthless student loans.

    I present the concept that authoritarianism is the age of diktat in regional governance, where residents of the world’s ten regions will live in schemes of totalitarian collectivism to pay off liberalism’s debts; those in North America will live as debt serfs to make good on the student loans that are not being paid. There will be no debt jubilee, as under authoritarianism, the debts of liberalism will be applied to every man, woman and child on planet earth.

    1. what are you talking about? If your 'wise king' cancels debt by fiat, then who is going to lend out cash? the age of liberalism? now? please. the debts are the result of totalitarian collectivism. now jog on.