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Apparently Small Businesses, College Loans, Autos, and now even Commercial properties are in need of some "relief" through the TALF (Term Asset-Backed Securities Loan Facility) which is a "non-recourse" loan facility of the Fed to buy up junk assets from banks and the other like lenders up to a Trillion in funds. Term Asset-Backed Securities Loan Facility - Wikipedia, the free encyclopedia
Those irresponsible business owners, college loan takers, auto loan takers, credit card takers, and commercial building owners. So irresponsible! taking up those loans... so irresponsible.... *tsk *tsk trying to profit off of the rising credit bubble. Why are we dilluting our tax payer dollars helping them... shame shame shame. Moral hazard I tell ya.... moral hazard... they should go bankrupt or default like the rules dictate. PUNISH Them!!
You are trying to be ironic, yet many small businesses, students etc were irresponsible.
You seem to misunderstand the point of these programs. They are trying to keep credit flowing so that responsible small businesses, students etc are not screwed form the actions of the irresponsible. They are not modifying etc past loans and things of that nature....that would involve moral hazard.
You are rather emotionally involved in this stuff. Things not going well?
Right now I am being punished for not paying back my student loan because since graduation last year I can't find a decent paying job. Forget finding a job in my profession. I send my resume to every school district in my area but get not one interview. All I get is emails stating that because of the very high response to the posted position if we don't hear from them, thank you for applying. I guess this is my reward for graduating college with honors. By the way how do you like your coffee? Better let me know soon before they outsource even that job.
You are trying to be ironic, yet many small businesses, students etc were irresponsible.
You seem to misunderstand the point of these programs. They are trying to keep credit flowing so that responsible small businesses, students etc are not screwed form the actions of the irresponsible. They are not modifying etc past loans and things of that nature....that would involve moral hazard.
You are rather emotionally involved in this stuff. Things not going well?
Ok, and who gets the benefit? And gave out these loans? The bankers get a reduced interest rate (essentially a re-finance) and are able to offload junk loans at the expense (no-recourse) to the Fed and private interests. Obviously there isn't a moral hazard if the system does this.
Anyhow, my point in pointing this out, is that it is a Credit Bubble problem that involves Every institution that relies and is built on top of credit (pretty much everything). Whether the college loan, business loan, auto loan was irresponsible is not discernable (for sure there were irresponsible people but there were also responsible people - responsible and irresponsible people take loans out throughout the credit bubble cycle). It's really more a mishap of circumstance. In this system, the last person in gets the blame, the risk, and defaults - not the banks/lenders or the system itself.
Therefore, I find the peeve many have about homeowners to be fairly narrow minded. Many businesses are renegotiating their leases, getting discounted leases, and getting "bridge" loans. Everything is a contract and Is negotiable including mortgages, labor contracts, etc. etc. I wouldn't be surprised if commercial loans get reworked rather than letting them default.
Yes, I have been personally affected including loss of income... most everybody has but only the few get preferential treatment. Obviously, the rules can bend for the "lenders" for the "good" of the rest.... yea right. For the good of the "few" at the expense of the rest.
Right now I am being punished for not paying back my student loan because since graduation last year I can't find a decent paying job. Forget finding a job in my profession. I send my resume to every school district in my area but get not one interview. All I get is emails stating that because of the very high response to the posted position if we don't hear from them, thank you for applying. I guess this is my reward for graduating college with honors. By the way how do you like your coffee? Better let me know soon before they outsource even that job.
This is why Im not a real big Obama supporter. He isnt doing anything about outsourcing/offshoring jobs. He says education is the way to fix the economic mess we're in but I see hard working Americans all around me who do go to school and still cant jobs. Why? Because the jobs dont exist.
It makes me sick that people on this forum blame the students that cant pay their loans pack who went to school to try and better themselves and cant find work!
That many do not find jobs in a field of their degree has always been the case.Many actually get jobs in unrelated fields especailly in time like these. That allows them to pay their student loans and other expenses.Gettihng a degree does not gaurantee you success ;that is upto the individaul and mnay degrees are not worth much as far as rerwards or job potential.
This is why Im not a real big Obama supporter. He isnt doing anything about outsourcing/offshoring jobs. He says education is the way to fix the economic mess we're in but I see hard working Americans all around me who do go to school and still cant jobs. Why? Because the jobs dont exist.
He is trying to eliminate the tax loophole corporates use to keep offshore profits untaxable.
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It makes me sick that people on this forum blame the students that cant pay their loans pack who went to school to try and better themselves and cant find work!
Sorry mpyne,
In the OP, I was being extremely sarcastic if you didn't get the sarcastic undertone. IMO, all of US are caught up in a credit bubble and collapse mechanism inherent (built-into) in the system. In the most part I don't put much blame on people as everybody in the system is serving their own self interest.
The problem, I believe, is the system itself. But I want more confirmation or a rebuttal that I'm dead wrong and that is why I created another thread about the Federal Reserve System.
Right now I am being punished for not paying back my student loan because since graduation last year I can't find a decent paying job. Forget finding a job in my profession. I send my resume to every school district in my area but get not one interview. All I get is emails stating that because of the very high response to the posted position if we don't hear from them, thank you for applying. I guess this is my reward for graduating college with honors. By the way how do you like your coffee? Better let me know soon before they outsource even that job.
The problem with your position is exactly the slippery slope a lot of Americans have been caught between. Going to college was not an explicit written contract on a job, it was an assumption on the part of the student that such outcome would be more probable with that piece of paper in hand. Thence, loading up on student debt was something done at your own risk, not an extension of said non-existent guarantee. That everybody is doing it is hardly a reason to do it, though I completely recognize the dilema a high school graduate faces when his/her peers are fully engaged in a race to the bottom.
The argument is of course the median can't afford college out of pocket. I agree but guess what, people shouldn't substantiate the system by loading up to the hilt on student loans then complaining they can't put food on the table with a crappy job and a car-to-a-mortgage size student loan payment. The fact that you stated your discontent at said outcome despite having graduating with honors is further evidence you truly believed the economy owed you something for your "sacrifice". I know it seems callous, but the economy doesn't owe you anything.
I know people scoff at the adjudication that college is the high school diploma of the 21st century, but case studies like yours are proof positive of that and it would be in the best interest of those coming up behind you to heed the advice of those with the benefit of hindsight to illustrate the sheer lunacy of committing to financial destitution in the tooth fairy belief that college is the ticket to easy street and that there isn't a single iteration where it could have actually left you worse off than if you hadn't attended at all.
Personally, my rule of thumb for college age folks is to not commit themselves financially anymore than they would have to finance an average used vehicle. You can always suck up a car sized loan payment on a McJob while driving a paid off beater, if worse comes to worst. I would never go in the hole more than 15K for a college degree, I don't care what major it is or what school it is from. And as for grad school? I wouldn't pay a single cent for it, paying for books is bad enough.
The more people that graduate from college, the worse off you are. I'm 6 years removed from undergrad and 4 years removed from grad school and I tread water on 45K. Live like a monk, not broke but not going anywhere, 'till the boomers die anyways(their retirement point as it turns out ).. Is this the income level I thought I'd have going into my 30s? Hell no. But here we are, just happy to have a job right? To then add insult to injury and try to pay back some ridiculous loan is quite essentially to swim backwards for the better part of one's productive life. To further continue to believe one is better off pursuing college in that way (the way most people do) is just lunacy.
We either re-inflate the value of the college degree (unlikely) or we place its proper price to match its diluted value (that of a high school degree == $0). America needs to pick its poison 'cause the pay-to-play college racket is running out of musical chairs. You either make it free and give its due value in this market, or you go the other way and open up the valuation of apprenticeships once again and give people a shot at making living wages without an overpriced piece of paper. Or I guess there's the oligarchs option, make everybody work at walmart for no benefits and 10/hr top out, degree or no degree.
Right now I am being punished for not paying back my student loan because since graduation last year I can't find a decent paying job. Forget finding a job in my profession. I send my resume to every school district in my area but get not one interview. All I get is emails stating that because of the very high response to the posted position if we don't hear from them, thank you for applying. I guess this is my reward for graduating college with honors. By the way how do you like your coffee? Better let me know soon before they outsource even that job.
Schools in many areas have had inflated budgets for a bit now, now that the states can't dig themselves into debt to solve their budgetary problems they have to make cuts.
Its never good to put your eggs all in one basket. The teaching jobs are unlikely to come back in force any time soon. For too long college students have gotten degrees without really thinking about the related job markets, etc. In a sense, its a cultural problem, the idea that "anybody can do anything". Just get the degree and you'll get the job afterwards, etc.
Ok, and who gets the benefit? And gave out these loans? The bankers get a reduced interest rate (essentially a re-finance) and are able to offload junk loans at the expense (no-recourse) to the Fed and private interests. Obviously there isn't a moral hazard if the system does this.
Who gets the benefit? Most immediately the people getting the loans, but the general economy benefits too. If credit stops flowing the economy will truly collapse. Also, the FED can control which assets it buys. When you securitized debt you do so in pools with loans with similar characteristics. The FED is not buying subprime debt or anything of that nature. They are supporting responsible lending.
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Originally Posted by chuck22b
It's really more a mishap of circumstance. In this system, the last person in gets the blame, the risk, and defaults - not the banks/lenders or the system itself.
Again, the banks/lenders have be published a lot. You don't want the system itself to collapse, not unless you enjoy bread lines etc.
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Originally Posted by chuck22b
Therefore, I find the peeve many have about homeowners to be fairly narrow minded. Many businesses are renegotiating their leases, getting discounted leases, and getting "bridge" loans. Everything is a contract and Is negotiable including mortgages, labor contracts, etc. etc.
Yeah, its narrow minded because its in disagreement with you. I'd suggest the shoe is on the other foot... Take for example, your statement here. Banks/lenders are free to renegotiate their loans with their borrowers, just as landlords can renegotiate leases with their renters.
You think the lenders are so stupid that they won't renegotiate loans when they can if it made good sense? They will, but modified loans have a high default rate and since the market is declining they will get less for the property down the road. Another problem is that the majority of loans are not owned by the banks. But the investors can agree to renegotiate the terms too. There is a problem on this end though, in the more complex investment structures there are people that actually profit from loan defaults etc!
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Originally Posted by chuck22b
Yes, I have been personally affected including loss of income... most everybody has but only the few get preferential treatment. Obviously, the rules can bend for the "lenders" for the "good" of the rest.... yea right. For the good of the "few" at the expense of the rest.
Yeah you are fixated on the banks and want us to bail you out. But you seem to fail to realize that everyone benefits from keeping the banking system functioning and credit flowing, we don't benefit by a chuck22b bailout.
Honestly, I think you would be much better serviced by thinking and talking about how to make your life better than complaining about banks.
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they should go bankrupt or default like the rules dictate. PUNISH Them!!
).. Is this the income level I thought I'd have going into my 30s? Hell no. But here we are, just happy to have a job right? To then add insult to injury and try to pay back some ridiculous loan is quite essentially to swim backwards for the better part of one's productive life. To further continue to believe one is better off pursuing college in that way (the way most people do) is just lunacy. 
