Political truths that are worth sharing but aren’t funny

Well Congress acting would require a Republican House to ADD regulations.

Biden can work on having the regulations changed but I believe it would take a minimum of 6 to 9 months to go through the regulatory process including the required public comment period.

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One thing that relates to both banks and schools (and everything else).

We are a lot better at bailouts than we are at regulations.


That would be rational, which means it probably won’t happen.


Which is understandable the first time a mistake is made (unfortunately we’re not perfect and lack the foresight to predict every scenario that needs to be regulated). When we roll back regulation that was put in place after the first time a mistake was made and then the mistake happens again is when it gets harder to support.


Yeah, the Nanny State needs to do a better job of Nannying.

“I’ll bail you out, but I’ll ALSO give you a curfew.”

1 week later:
“I’m home.”
“It’s 4am!”

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Actually not sure we did anything at all to stop the student loan crisis from recurring.


question of fact: student loans cannot be discharged during bankruptcy, at least not normally, right ?

otherwise it seems like it would be very rational to do that right out of college. maybe i’m missing something.

Student Loan debt is very, very, difficult to be discharged in Bankruptcy.

Gotta protect predatory lenders who indiscriminately loan money to kids.


I have no idea how these things actually work, but how much would requiring a co-signer help?

Correct, student loans are not dischargeable in bankruptcy.


Difficult? I thought it was impossible! How can one get their student loans discharged, albeit with difficulty?

I suppose you could get a cash advance on a credit card and pay the student loans off and then declare bankruptcy and get the credit card debt discharged, but I assume that

  1. They look for that sort of game.
  2. It would be hard to get that much credit on a credit card if the loans were sizable.

When I was a creditor in bankruptcy court I was pleased to see that the judge did not allow the debtors to prepay 8 months worth of rent. (The prepaid rent was considered an asset by the court.)

There were other ridiculous shenanigans the debtors could and did pull that were allowed, but the court at least caught and disallowed that shenanigan.

I acknowledge that I might be disappointed in the truthiness of this statement.

I have no first hand knowledge, just what I’ve read. SL discharge in bankruptcy is possible but difficult. I believe at one time your statement of impossible was close to correct but times have changed.

Your example though of resident discharging before getting large paying job is probably far rarer that someone who got a boat load of debt to attend some for profit school with a near worthless degree even assuming they were able to complete the program.

Anecdotally which means little, my BIL had his not inconsiderable student loan debt paid entirely by the hospital group he signed on with in exchange for a 5 year contract.

If student loans were dischargeable the same as any other debt then I assume this would be SOP for every medical resident whose last name is not Rockefeller, Walton, or Gates. Freshly minted lawyers too. Really pretty much any college graduate who doesn’t have a trust fund and didn’t get a full ride to college. No more need to save for your kid’s college: just let them take out loans and declare bankruptcy upon graduation. Cash out the 529 now!

I mean, that is the very argument for why student loans should NOT be dischargeable.

But the counter argument is the folks who never even graduated and have a crap ton of debt and no marketable skills of note.

The existence of the latter is why reform is needed. The existence of the former is why we shouldn’t just treat it the same as any other king of debt.

Not just lawyers and doctors.

Why wouldn’t almost everybody do it right after college? It would hurt your credit score for a while, but so what? You are young and saving tens of thousands or even hundreds of thousands of dollars.

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Yeah no question it should be means tested on forgiveness. The devil as they say is in the details and probably a massive tread drift from whatever this thread is.

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Political Truth that isn’t funny: We will not vote out anybody who voted for the Dodd Frank rollback.

We might get a slight high from blaming (Donald Trump, Republicans, Democrats in rural states).

But we will not consider it at all in 2024, or ever again.

We will vote on culture wars, immigration, and the big lie. If we think about money at all, it will be about how we hate/love taxes/spending/regulation, with no consideration for what that means.


Another unfunny political truth is that ending the student loan repayment moratorium would do more to fight inflation than anything the Fed can do.

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We should reduce the deficit (and inflation) by increasing taxes or reducing spending.
(Whichever of those two let’s me blame other people more.)

Unless GDP growth is below 8% or someone in unemployed somewhere, in which case we should stimulate the economy by reducing taxes or increase spending.
(Whichever of those two let’s me blame other people more.)