You are viewing a single comment's thread.

view the rest of the comments →

0
0

[–] 18006910? ago 

Loan companies put the cart before the horse though. The loan has value because of the projected wealth of the person they're loaning the money on the hope they'll produce income to pay off the loan. It's not just the person who takes out a loan who is assuming risk, it's also the banks that loan the money out. If the person who took out the loan is unable to generate income and has no reasonable means to paying it off in a timely fashion the bank has effectively shit that money away. Their investment did not show a return.

Supposing I'd been foolish enough to indulge in such a ridiculous loan for underwater basket weaving and accrued 50k debt I'd just throw my hands up and say fuck it if I had no future and such an enormous debt hanging over my head. Nothing from nothing leaves nothing. The bubble is going to pop and sooner the better. If you don't allow bankruptcy from school loan debt then the value of those loans will diminish, cost of education will inflate further to compensate for the diminished value, and the market will stagnate and lose all liquidity.

0
0

[–] 18006911? ago 

They will just print more money, they've done it before.

0
0

[–] 18006921? ago 

The difference was that previously other countries like China, Russia, Brazil, India were required to convert their currencies to dollars before buying oil. So China, for example, didn't mind selling us cheap garbage while we flooded their country with freshly printed dollars… effectively exporting inflation… because it wasn't impacting the price of oil and they were going to have to convert anyway. Since 2008 China's currency has been allowed into the IMF's basket of reserve currencies, (making it on par with the dollar) and they are no longer required to convert their currency to dollars in order to buy oil. China has also been the worlds largest producer, and consumer, of gold. They're actually leveraging the economic destruction of the western world to buy gold cheaply on the London exchange, while western governments print paper gold contracts (that settle for money without taking delivery) to artificially suppress the price of gold. Also, remember Canada? Selling off all of their gold?

So yes, there will be another crisis, but there will be no way for us to print our way out of it this time. The rest of the world, both developed and not, saw all of what happened last time. Your standard of living won't be subsidized like it is now for much longer.

0
0

[–] 18006919? ago 

That trick only works so many times.