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Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

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Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#371
post #370

Earlier quoted context omitted.

> Why would we make them take out huge loans You wouldn't, like you weren't paying to do your military service. > engaging directly with the world via travel or talking to people outside our bubble A mandatory year mixing all social classes is, by definition, "bubble-popping". In fact this still happens today, when young people are forced to leave their home town they lived all their life in in order to go to the uni…

> You wouldn't, like you weren't paying to do your military service. Who do you think pays for military service if not the people? Martians? What is the difference between generation X paying for generation X+1's education, spending g% more than what was paid for their own education, and generation X taking out a loan to pay for their education at a rate of r? The only thing that matters is whether r > g, the growth…

I would expect student loans and taxpayer money not having the same dynamic ?

> Ahh, yes, those isolated campuses with safe spaces and psychological violence counselors -- a true bubble popping experience.

Again, this is very American-centric.

> You can also be old and foolish.

Considering his credentials, it seems unlikely.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#372

Earlier quoted context omitted.

There are asset-backed securities called SLABS (student loan ABS) that I guess you could make some kind of credit swap out of if that's what you're into. Probably super expensive to construct such an instrument since it like isn't a super liquid market.

That is one route, or I think the better route may be cds on revenue bonds for public or private schools. Should be cheaper cds, but just as damaged as the crisis rolls through

Mind explaining this strategy a little bit more? I'm not really up to speed on any other fixed-income instruments outside mortgages.
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