US Household Debt Surpasses 2008 High
Yeah but this time is different :).
Memo to self: looks like US stock market goes from feast to famine in 10 year cycles. Sell now and buy at 40% discount 1-2 years later. Rinse. Repeat
US Household Debt Surpasses 2008 High
301–310 of 436 posts
Re: US Household Debt Surpasses 2008 High
#302Earlier quoted context omitted.
It sure feels like a bubble to me. I don't know how many friends I have with six figures of student loans and no career, but it's a lot. Considering that those loans don't even go away with bankruptcy, it's waaaay too many. I've noticed that younger students are starting to realize how much risk there is in something like that and shy away when my generation didn't. Maybe it's that I grew up in a "striving" middle cl…
I don't know, maybe it's different now, but my generation (went to school in the mid 90s) was not told to "just go to the best college no matter what": We were also advised to consider the cost and carefully choose a major so as to produce a positive expected ROI. Obviously nobody has a crystal ball and you can never tell when huge, industry-wrecking changes are coming, but it was well understood that majoring in Und…
Yea, but we didn't know much about the world. We were the last truly innocent generation?
The Internet was a baby. I had no idea people were hired on what college they graduated from. I had this notion it was about ability. I did know certain schools, like Princeton was kinda a joke. Why? Every over the hill actress/rich kid gets in.
I picked a business major, which at the time, was a conservative major.
If I had a do over, I would tough out a physics/chemistry program. It was so much more difficult learning math back then. Just a big book, and a bunch of other confused students.
That said, if I had a do over today, I would still spend two years at a community college. It's boring, and you're with a lot of older people. Then again, going to a CC is not good advice either. Most never tranfer.
I think the best advice is get credentialed in something. Then rob, and steal from the uninformed, and vunerable, because you have a huge barrier to entry?
Looking back, I had maybe ten classes, I really learned something from. I really thought college would be exposed for what it is by now.
How should companies hire? Test applicants. The brightest people I have run across never got their degree.
Re: US Household Debt Surpasses 2008 High
#303Keep in-mind this household debt is above and beyond each household's share of their municipal, county, state and federal debt. If you live in LA County, CA: - about $4,200 in State Debt. - roughly another $4,000 or in LA County debt. - $161,000 in federal debt. - $16,000 in credit card debt on average. - Car loan, home payment, etc. And on average your savings are minimal. Most importantly, if this isn't you, its st…
I was with you until the end. What policy proposals do you think would realistically restore 5-6% growth?
Not the OP, I'm guessing lowering corporate tax rate, and similar measures to bring foreign production home.
Re: US Household Debt Surpasses 2008 High
#304Earlier quoted context omitted.
I truly don't understand the USA sometimes. Don't you guys know that in Europe higher education is free? Well where I'm from there was a very low nominal cost but my father was a public servant so cost was waived, I literally studied CS for 0 cost. And these countries are able to afford it all! Magic! I don't understand how people in USA are not aware of this and literally rioting in the streets. At the very least sw…
You didn't pay for it, but it wasn't free. Everyone else paid for you.
And as everyone benefits from a better educated society that's how it should be.
Re: US Household Debt Surpasses 2008 High
#305Earlier quoted context omitted.
I truly don't understand the USA sometimes. Don't you guys know that in Europe higher education is free? Well where I'm from there was a very low nominal cost but my father was a public servant so cost was waived, I literally studied CS for 0 cost. And these countries are able to afford it all! Magic! I don't understand how people in USA are not aware of this and literally rioting in the streets. At the very least sw…
> Don't you guys know that in Europe higher education is free In SOME countries in europe, higher education is free. I've met plenty of Brits with student loans. They're still in Europe (and the eu for now)
We have to pay in the UK, however everyone gets 'free' student loans to cover it. They cover tuition (£9k per year) and you have the choice of a 'maintenance loan' (basically to cover living costs) of £3-12k depending on whether you live in London or not. I think interest matches inflation, it is paid back via a tax straight out of your pay check but not until you are earning more than £25k per year. Also worth noting that tuition fees used to be about 1/3 what they are now but were raised around 2010. One of the talking points in the current election is how the opposition wants to get rid of them entirely.
Re: US Household Debt Surpasses 2008 High
#306Earlier quoted context omitted.
Why is student loan debt not dischargable in bankruptcy? Because there isn't a way to take back the knowledge/skills/information learned while in college. If you default on a home loan, then can take your house. If you default on a car loan, they can take your car. What can they do when you default on your student loans?
You can still declare bankruptcy when you don't have the collateral for your car/house loan anymore, though. For example, if your car was totaled, or your house burned down.
Yes but what you are describing is essentially unsecured debt. The government is guaranteeing your loans, why do you think student loan rates are so much cheaper than credit cards?
The price you pay for that guarantee is that you can't declare bankruptcy. The government is propping up this industry and it has some parallels to the US housing before 08 (encouraging lending to subprime homebuyers)
Re: US Household Debt Surpasses 2008 High
#307Earlier quoted context omitted.
You didn't pay for it, but it wasn't free. Everyone else paid for you.
And as everyone benefits from a better educated society that's how it should be.
That doesn't make it free. It does mean the poor, the hardworking, non-college educated working class pay for the more wealthy, more educated kids to go to college for free, while their own kids get to sit another generation out.
Re: US Household Debt Surpasses 2008 High
#308The 100% chart is quite deceptive. Student loans take a larger share of the debt. Is that because increased tuition fees (probably), is that because more young people have become students (ie. higher education available to more people), is it because young graduates won't buy a house and still live with their parents (and thus stay in the Student Loans category instead of moving to the Mortage category) and opt for a car instead (thus moving part to the Auto Loans category)? Is it because houses (and thus underlying loans) are cheaper?
Basically all this 100% chart says is that people are taking out less of a loan for a house.
Re: US Household Debt Surpasses 2008 High
#309Earlier quoted context omitted.
In Denmark everyone can get scholarships to pay for their entire education. That and they get a stipend for living expenses. Everyone gets this, young or old, rich or poor.
Yeah but I bet your sports facilities are nowhere near as good, and the admin departments are way understaffed /s
I never understood why universities need competitive sports facilities in the first place (except when it's required for the curriculum, e.g. where sports medicine is offered). I suppose it's something to do either with tradition ("our sports team has been the best for over a century") or income from sponsorship and merch sales, but not sure.
Re: US Household Debt Surpasses 2008 High
#310Earlier quoted context omitted.
And as everyone benefits from a better educated society that's how it should be.
That doesn't make it free. It does mean the poor, the hardworking, non-college educated working class pay for the more wealthy, more educated kids to go to college for free, while their own kids get to sit another generation out.
In theory the poor (should) pay less taxes. In practice, I'm telling you, in Europe taxes pay for free education and social equality is higher than in the US and access to education (and healthcare) much better.