Tag Archives: Jubilee

Worst. Anniversary. Ever. #TrillionDollarDebt

Worst. Anniversary. Ever. #TrillionDollarDebt
This week marks the two-year anniversary of student loan debt topping $1 trillion nationally — and another year of missed opportunities to address this growing crisis. That $1 trillion represents the second-largest personal debt in the United States. But even that jaw-dropping reality doesn’t tell the stories of millions of borrowers who are hamstrung by federal student loan policies and the lack of meaningful action to address this crisis. ... Read more

Welcome to the Creditocracy, Where Your Debt Piles Up Forever

Welcome to the Creditocracy, Where Your Debt Piles Up Forever
Last month, the Federal Reserve confirmed the ominous news. The decline in US household debt from sky-high 2008 levels has halted, and the figures are on the rise again – up by $241bn (or 2.1%) in the fourth quarter of 2013, following a smaller increase in the third quarter. Unlike auto loans, mortgages, and credit card balances, student debt never fell at all, and is fast approaching $1.2 tn. Economists seem to have decided that the “debt ... Read more

“Vulture Funds” Seek Dangerous Precedent In Argentine Debt Case

“Vulture Funds” Seek Dangerous Precedent In Argentine Debt Case
Argentina this week requested that the U.S. Supreme Court review a lower court ruling that would compel the country to pay more than $1.3 billion to U.S. “holdout” bondholders that the Argentine president has called “vultures.” The case is being widely watched due to its immediate, as well as long-term implications. On one hand, economists worry that the lower court’s ruling could force Argentina back into default, potentially leading the ... Read more

THE SUBPRIME EDUCATION CRISIS

THE SUBPRIME EDUCATION CRISIS
Oh dear. We appear to have what might be termed sub-prime student loans on which there are rising defaults. In fact it is possibly worse than sub-prime mortgages, because unlike mortgages, delinquent student loans cannot be written off in return for asset seizure. The borrower is stuck with the debt – possibly for life – while the lender, i.e. the US government, receives nothing. Really it is the worst of all possible worlds. Read more