Thought 2007 was a bad year? Wait a little while - SLABs

| No Comments

A long thread but worth reading - from pro-birth:
A synthesis in three parts:

Part #1) — from here:

20220509-20years.jpg

Part #2) — from here:

You know why they had to say “20 years ago”? Until 2005, if you couldn’t pay off your student loan debt, you could declare bankruptcy and your student loans would be nullified. (Your credit rating would take a hit which would take about a decade to recover, but that’s not such a big deal.) In 2005, Congress passed a law which made student loan debt no longer dischargeable in bankruptcy — actually a minor provision, mostly the bill was to make it easier for credit card issuers (who wrote the bill’s text) to harass clients who were in bankruptcy. The Senator who sponsored that bill?
Joe Fucking Biden, the asshole the Democrats united to nominate instead of Bernie Sanders.

 

Part #3) - from the site:

Psst. Hey. Y’all want to know why they did this?

Why they will never forgive student loan debt?

Why they want you to have debt you can’t pay back?

Student loan asset-backed securities.
Remember mortgage-backed securities from the 2008 financial crisis?

Hedge funds and banks had put everything into MBSs, incentivizing lenders to give out mortgages to people who couldn’t afford them in order to inflate the amount of MBSs available to invest in. Corrupt credit rating agencies rated these securities higher than they should have, artificially propping up a teetering Jenga tower. When people started getting foreclosed on because they couldn’t afford their mortgages, the tower eventually came crumbling down - but not before the big Wall Street investors - including the execs from the various banks and hedge funds - got out of their positions, leaving the banks and hedge funds themselves holding the bag and destroying people’s savings and pensions.

The trouble with MBSs, you see, is that people can be foreclosed on. Before MBSs, this was pretty rare, because lenders had no incentive to lend to those who couldn’t afford it. When MBSs became popular for investors, lenders now had that incentive.

Now we have Student Loan Asset-Backed Securities, or SLABS. These securities, like MBSs, are an investment in the loan and the repayment of that loan as an asset. Only now these securities are much safer - because you can no longer declare bankruptcy on those loans. There is no asset (like a house) that can be taken away - can a bank repossess your education?

So instead, the asset behind a SLABS is not your education, but your lifetime of work. YOU are the asset behind SLABS.
Worst part? So much of Wall Street now relies on SLABS for their balance sheets that if anything were done to disrupt this system, the crash we would see would be certainly worse than 2008, possibly worse than 1929.

This Jenga tower got far too tall, and SLABS are the key foundational piece on which everything else relies.

Just wonderful...  If Putin has an itchy trigger finger on his cans of sunlight, I could not think of a better target for an airburst than Washington, D.C.  Keep the museums, just irradiate the people and bring the grid down for a couple years. A clean slate.

Leave a comment

May 2022

Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31        

Environment and Climate
AccuWeather
Cliff Mass Weather Blog
Climate Depot
Ice Age Now
ICECAP
Jennifer Marohasy
Solar Cycle 24
Space Weather
Watts Up With That?


Science and Medicine
Junk Science
Life in the Fast Lane
Luboš Motl
Medgadget
Next Big Future
PhysOrg.com


Geek Stuff
Ars Technica
Boing Boing
Don Lancaster's Guru's Lair
Evil Mad Scientist Laboratories
FAIL Blog
Hack a Day
Kevin Kelly - Cool Tools
Neatorama
Slashdot: News for nerds
The Register
The Daily WTF


Comics
Achewood
The Argyle Sweater
Chip Bok
Broadside Cartoons
Day by Day
Dilbert
Medium Large
Michael Ramirez
Prickly City
Tundra
User Friendly
Vexarr
What The Duck
Wondermark
xkcd


NO WAI! WTF?¿?¿
Awkward Family Photos
Cake Wrecks
Not Always Right
Sober in a Nightclub
You Drive What?


Business and Economics
The Austrian Economists
Carpe Diem
Coyote Blog


Photography and Art
Digital Photography Review
DIYPhotography
James Gurney
Joe McNally's Blog
PetaPixel
photo.net
Shorpy
Strobist
The Online Photographer


Blogrolling
A Western Heart
AMCGLTD.COM
American Digest
The AnarchAngel
Anti-Idiotarian Rottweiler
Babalu Blog
Belmont Club
Bayou Renaissance Man
Classical Values
Cobb
Cold Fury
David Limbaugh
Defense Technology
Doug Ross @ Journal
Grouchy Old Cripple
Instapundit
iowahawk
Irons in the Fire
James Lileks
Lowering the Bar
Maggie's Farm
Marginal Revolution
Michael J. Totten
Mostly Cajun
Neanderpundit
neo-neocon
Power Line
ProfessorBainbridge.com
Questions and Observations
Rachel Lucas
Roger L. Simon
Samizdata.net
Sense of Events
Sound Politics
The Strata-Sphere
The Smallest Minority
The Volokh Conspiracy
Tim Blair
Velociworld
Weasel Zippers
WILLisms.com
Wizbang


Gone but not Forgotten...
A Coyote at the Dog Show
Bad Eagle
Steven DenBeste
democrats give conservatives indigestion
Allah
BigPictureSmallOffice
Cox and Forkum
The Diplomad
Priorities & Frivolities
Gut Rumbles
Mean Mr. Mustard 2.0
MegaPundit
Masamune
Neptunus Lex
Other Side of Kim
Publicola
Ramblings' Journal
Sgt. Stryker
shining full plate and a good broadsword
A Physicist's Perspective
The Daily Demarche
Wayne's Online Newsletter

About this Entry

This page contains a single entry by DaveH published on May 9, 2022 6:41 PM.

The war in Ukraine - who is winning? was the previous entry in this blog.

Up to the farm today is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Monthly Archives

Pages

OpenID accepted here Learn more about OpenID
Powered by Movable Type 5.2.9