Bottom line is over the past 50+ years the banking sector has changed from being a sector which provides a useful service to the economy to one which only is looking to create debt slaves and bring misery to the have nots as much as possible to line their pockets
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence
Next up are the college students who shoulda known better and will be saddled with the massive amount of government debt also currently be racked up to protect the status quo of crony capitalism
Modern day serfdom all in the name of protecting the elites power and concentrating it further
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Student Loan Bubble To Exceed $1 Trillion: "It's Going To Create A Generation Of Wage Slavery" And Another Taxpayer Bailout
Submitted by Tyler Durden on 10/20/2011 17:46 -0400
Asset-Backed Securities Bank of New York Federal Reserve Federal Reserve Bank Federal Reserve Bank of New York None Real estate
First, this is the total amount of student debt in real time:
While one of the biggest complaints of #OccupyWallStreet protesters, and much of the balance of middle-class America, continues to be the burden of student loans, the paradox is that, as the USA Today reports once again on one of its favorite subjects, student loans are set to surpass $1 trillion in total notional for the first time in history on what appears to be relentless demand and interest for this cheap form of educational financing, making this debt burden the single largest form of consumer debt, well bigger than outstanding credit card debt, and smaller only compared to mortgage debt. "The amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York. Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports. Total outstanding debt has doubled in the past five years — a sharp contrast to consumers reducing what's owed on home loans and credit cards." What explains this insatiable demand for this kind of debt? Well, it's cheap, it's easily accessible (the collateral is education), and it is fungible - a student can take out a loan, yet use part or all of the balance for tangential purchases (that iPhone 4S sure would make me cool). But this, like every other debt, comes at a price.
Per USA Today:
Taxpayers and other lenders have little risk of losing money on the loans, unlike mortgages made during the real estate bubble. Congress has given the lenders, the government included, broad collection powers, far greater than those of mortgage or credit card lenders. The debt can't be shed in bankruptcy.
*
The credit risk falls on young people who will start adult life deeper in debt, a burden that could place a drag on the economy in the future.
*
"Students who borrow too much end up delaying life-cycle events such as buying a car, buying a home, getting married (and) having children," says Mark Kantrowitz, publisher of FinAid.org.
Naturally, just like in the credit bubble days, when NINJA loans were fast and furious, the lines in front of banks stretched around the block. Banks may or may not have known that the loans would be repaid, but nobody pressured borrowers to live in that big McMansion that "demanded" $1 down and a 99.9% LTV. Sure enough, when the day of reckoning comes, it is never the fault of the person who probably should have shown some restraint, but no: after all everyone else is doing it.
Well, it is the same thing now. And with generations of people indoctrinated that only those with a college degree can be successful, it is only obvious that student debt is now the next big bubble.
"It's going to create a generation of wage slavery," says Nick Pardini, a Villanova University graduate student in finance who has warned on a blog for investors that student loans are the next credit bubble — with borrowers, rather than lenders, as the losers.
*
Full-time undergraduate students borrowed an average $4,963 in 2010, up 63% from a decade earlier after adjusting for inflation, the College Board reports. What's happening:
Granted, unlike with the mortgage bubble collapse, this time we know, as Zero Hedge reported earlier in the week, that everyone is on the fraud. We quote from "The Fraud At The Heart Of Student Lending Exposed - The One Sentence Everyone Should Read"
A key reason why a preponderance of the population is fascinated with the student loan market is that as USA Today reported in a landmark piece last year, it is now bigger than ever the credit card market. And as the monthly consumer debt update from the Fed reminds us, the primary source of funding is none other than the US government. To many, this market has become the biggest credit bubble in America. Why do we make a big deal out of this? Because as Bloomberg reported last night, we now have prima facie evidence that the student loan market is not only an epic bubble, but it is also the next subprime! To wit: "Vince Sampson, president, Education Finance Council, said during a panel at the IMN ABS East Conference in Miami Monday that lenders are no longer pushing loans to people who can’t afford them." Re-read the last sentence as many times as necessary for it to sink in. Yes: just like before lenders were "pushing loans to people who can't afford them" which became the reason for the subprime bubble which has since spread to prime, but was missing the actual confirmation from authorities of just this action, this time around we have actual confirmation that student loans are being actually peddled to people who can not afford them. And with the government a primary source of lending, we will be lucky if tears is all this ends in.
So... debtors know it's a bubble, lenders know it's a bubble, everyone knows it's a bubble, yet it is growing faster now than ever before.
If nothing this is a fantastic exercise in observing a slow at first, then fast-motion train wreck from the side. It is without a shadow of a doubt, that not only will the student debt bubble pop, but writedowns on amounts outstanding will be massive, potentially resulting in another hit of 50% to total notionals, or about $500 billion. And since the borrowers will be fully tapped out, and the lenders will plead ignorance, and control the regulators and administration any way, is there any doubt who will once again be forced to pay for this upcoming bail out? This is something that does not require a college degree to figure out...
Modern day serfdom all in the name of protecting the elites power and concentrating it further
----------
Student Loan Bubble To Exceed $1 Trillion: "It's Going To Create A Generation Of Wage Slavery" And Another Taxpayer Bailout
Submitted by Tyler Durden on 10/20/2011 17:46 -0400
Asset-Backed Securities Bank of New York Federal Reserve Federal Reserve Bank Federal Reserve Bank of New York None Real estate
First, this is the total amount of student debt in real time:
While one of the biggest complaints of #OccupyWallStreet protesters, and much of the balance of middle-class America, continues to be the burden of student loans, the paradox is that, as the USA Today reports once again on one of its favorite subjects, student loans are set to surpass $1 trillion in total notional for the first time in history on what appears to be relentless demand and interest for this cheap form of educational financing, making this debt burden the single largest form of consumer debt, well bigger than outstanding credit card debt, and smaller only compared to mortgage debt. "The amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York. Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports. Total outstanding debt has doubled in the past five years — a sharp contrast to consumers reducing what's owed on home loans and credit cards." What explains this insatiable demand for this kind of debt? Well, it's cheap, it's easily accessible (the collateral is education), and it is fungible - a student can take out a loan, yet use part or all of the balance for tangential purchases (that iPhone 4S sure would make me cool). But this, like every other debt, comes at a price.
Per USA Today:
Taxpayers and other lenders have little risk of losing money on the loans, unlike mortgages made during the real estate bubble. Congress has given the lenders, the government included, broad collection powers, far greater than those of mortgage or credit card lenders. The debt can't be shed in bankruptcy.
*
The credit risk falls on young people who will start adult life deeper in debt, a burden that could place a drag on the economy in the future.
*
"Students who borrow too much end up delaying life-cycle events such as buying a car, buying a home, getting married (and) having children," says Mark Kantrowitz, publisher of FinAid.org.
Naturally, just like in the credit bubble days, when NINJA loans were fast and furious, the lines in front of banks stretched around the block. Banks may or may not have known that the loans would be repaid, but nobody pressured borrowers to live in that big McMansion that "demanded" $1 down and a 99.9% LTV. Sure enough, when the day of reckoning comes, it is never the fault of the person who probably should have shown some restraint, but no: after all everyone else is doing it.
Well, it is the same thing now. And with generations of people indoctrinated that only those with a college degree can be successful, it is only obvious that student debt is now the next big bubble.
"It's going to create a generation of wage slavery," says Nick Pardini, a Villanova University graduate student in finance who has warned on a blog for investors that student loans are the next credit bubble — with borrowers, rather than lenders, as the losers.
*
Full-time undergraduate students borrowed an average $4,963 in 2010, up 63% from a decade earlier after adjusting for inflation, the College Board reports. What's happening:
Granted, unlike with the mortgage bubble collapse, this time we know, as Zero Hedge reported earlier in the week, that everyone is on the fraud. We quote from "The Fraud At The Heart Of Student Lending Exposed - The One Sentence Everyone Should Read"
A key reason why a preponderance of the population is fascinated with the student loan market is that as USA Today reported in a landmark piece last year, it is now bigger than ever the credit card market. And as the monthly consumer debt update from the Fed reminds us, the primary source of funding is none other than the US government. To many, this market has become the biggest credit bubble in America. Why do we make a big deal out of this? Because as Bloomberg reported last night, we now have prima facie evidence that the student loan market is not only an epic bubble, but it is also the next subprime! To wit: "Vince Sampson, president, Education Finance Council, said during a panel at the IMN ABS East Conference in Miami Monday that lenders are no longer pushing loans to people who can’t afford them." Re-read the last sentence as many times as necessary for it to sink in. Yes: just like before lenders were "pushing loans to people who can't afford them" which became the reason for the subprime bubble which has since spread to prime, but was missing the actual confirmation from authorities of just this action, this time around we have actual confirmation that student loans are being actually peddled to people who can not afford them. And with the government a primary source of lending, we will be lucky if tears is all this ends in.
So... debtors know it's a bubble, lenders know it's a bubble, everyone knows it's a bubble, yet it is growing faster now than ever before.
If nothing this is a fantastic exercise in observing a slow at first, then fast-motion train wreck from the side. It is without a shadow of a doubt, that not only will the student debt bubble pop, but writedowns on amounts outstanding will be massive, potentially resulting in another hit of 50% to total notionals, or about $500 billion. And since the borrowers will be fully tapped out, and the lenders will plead ignorance, and control the regulators and administration any way, is there any doubt who will once again be forced to pay for this upcoming bail out? This is something that does not require a college degree to figure out...
Dafinch, i have one of those mortgages,i was going through a divorce and was just back to work.i told them i dont think i could qualify,but they said we checked your score u are good.then they didnt tell me taxes were being reassesed and had 31 grand of mine as a down payment.they also gave me a different rate and payment at closing.I want ot sue looking for a way.
I accept no blame for selling my POS golf clubs for $75...fraud is a different story.
I can also go buy a new car today and finance it for 7 years and have a nice low monthly pmt. But is that wise? Is it wrong for the car salesman to sell me a car based on a monthly payment I can afford?, regardless of rate or term? First question they always ask is...What kind of payment are you looking for..? Ha..
Dafinch thanks for answering me back.like i stated the bank is in process of taking me to court.Its going on for 2 and 1/2 years to try and forclose on me,I dont want the house,i want to take them to court to get my money back that i have in it and my lawyers fees i am currently living with my girlfriend to help her out and me.Is it possible to beat them?
No problem. If you hover the cursor over "dafinch" on the left side of any of my posts, one of the things that comes up is "private message," whereupon you can send me one of those. At the top of the page (when you're logged in) one of the things showing is "notification" and when I look up there it would show if I had a Private Message waiting for me. Or, you can just say "check your PM" in this thread, even easier.
Didn't say "pay off," I said eliminate. You can get an idea by 1) listening to the 10 minute taped message provided in the first post 2) PM me to receive a precise description of same, and a few recent examples of homeowners accomplishing the feat 3) call in the live calls held Monday, Wednesday and Fridayand ask questions of the owners, who are located in NYC, btw, or some combination of the above.
Yes, you are, but you MUST stop making payments. On the interactive call, there were people in that same situation who asked, can I do it and keep making my payments (so as to keep my good credit)? Unfortunately, the answer is, NO. You cannot on the one hand, say, yo, I don't think you have the right to have a mortgage on my home, and on the other hand say, btw, here is this month's payment. That, they said, would be "re-contracting" and would negate your claim for that month. However, they also said, you'd miss only 2-3 months, and once you got the reconveyance, you go to the Big Three Credit joints: Transunion, Equifax, and Experian, and say, you show me with 3 late payments. I claimed that the lender had no right to have a mortgage on my home, and here is the proof that I was right. If there shouldn't have been a mortgage on the home in the first place, then there shouldn't be any derogatory information connected to that, so take those 3 late pays off.
