From the NYT:
Young and in Debt in New York City
For young people, moving to New York City hasn’t made much mathematical sense for decades. The jobs don’t pay enough, the internships don’t pay at all, and the rents are prohibitive by any sane standard.
But now add a new economic fact of life to that list: soaring student loan debt. More students are taking out bigger loans than ever before, and in the last 10 years alone, education debt tripled, reaching over $1 trillion. A record number of college students are graduating knee deep in a financial hole before they begin their adult lives.
Still, new research suggests that college is working, economically. Four years on campus nets the average graduate almost twice as much in wages as someone without a degree. Those odds may be comforting in the long run, but not when you’re young, deeply in debt and trying to nest in New York City.
For many people in college and recently out of it, the pressure of debt seems to be colliding in new ways with the problem of finding a place to live in the city, adding a layer of complication to something that was already plenty complicated.
…
Data released by the Federal Reserve Bank of New York suggests that the relationship between student loan debt and the housing market has turned ugly fast. People with student debt used to buy homes at higher rates than peers who had not taken out loans, partly because going to college meant earning more money, according to the report.But in 2012, the New York Fed reported that for the first time in at least a decade, 30-year-old student borrowers were less likely to take out home mortgages than other young people. Among people around 30 years old, homeownership was plunging fastest for student debtors.
Economists are worried. Last month, former Treasury Secretary Lawrence Summers said that student loan debt was taking the life out of the housing recovery, and the Nobel laureate Joseph Stiglitz called the rising debt “an educational crisis” that is “affecting our potential future growth.”
Economists are worried. Last month, former Treasury Secretary Lawrence Summers said that student loan debt was taking the life out of the housing recovery, and the Nobel laureate Joseph Stiglitz called the rising debt “an educational crisis” that is “affecting our potential future growth.”
No worries, just create a new
debtloan vehicle for the muppets and market it accordingly .A nice rip on Timmy Geethner’s new book. The guy who wrote it was a clowngressional assistant who worked on Dodd-Frank:
“Geithner is at heart a grifter, a petty con artist with the right manners and breeding to lie at the top echelons of American finance at a moment when the government and financial services industry needed someone to be the face of their multi-trillion dollar three card monte. He’s going to make his money, now that he’s done living his life of fantastic power after his upbringing of remarkable mysterious privilege. After reading this book and documenting lie after lie after lie, I’m convinced that there’s more here than just a self-serving corrupt official. There’s an entire culture, of figures at Treasury, the Federal Reserve, in the entire Democratic Party elite structure, and in the world of journalism, a culture in which Geithner is seen as some sort of role model.
Americans may not get the reckoning, investigations, and jail time for wrongdoers, including Geithner himself, which they want, at least not now. But they don’t have to buy Geithner’s version of events. Far less important than what kind of regulation is in place is the ethical and cultural question of whether people like Tim Geithner can continue to lie, cheat, and steal at the highest reaches of government. Hopefully, Americans have learned enough from the financial crisis so that the answer will be no.”
http://www.vice.com/read/tim-geithner-and-the-con-artist-wing-of-the-democratic-party
@njdotcom:
Comedian Tracy Morgan in critical condition following multi-car Turnpike accident http://t.co/8MdMk9ZhiJ
Hashtag Turbotax
Did I do that right?
Can we just get it out of the way now and call Luxury Point Xanadu 2?
as much as you morons hate him, Stewart has been one of the few to challenge the BS
“During the interview, Mr. Geithner employed his oft-used and perhaps drawn-out metaphor for the government’s response to the economy’s implosion, comparing the crisis to a burning plane with terrorists that was about to crash with innocent passengers — the American public — on board.
While Mr. Stewart conceded that the metaphor made some good points, he echoed the larger complaint that the government then rewarded the banks that were responsible for the crisis.
“Then it felt like you took the arsonists off the plane and you got them a massage and a steak dinner,” he told Mr. Geithner.”
80 grim (yesterday)
Uber worth $17 billion?
No, I don’t think so.
He was good, not that good. 17B is much more than the last time I paid him to inspect my house the last time.
Looks like I can’t afford him anymore. Must be affluenza.
@billmaher:
You guys aren’t just firearm enthusiasts, you’re #Ammosexuals. #RealTime
@HBO (video) http://t.co/X5OZMv7VXJ
Lucky SOBs
http://www.nj.com/news/index.ssf/2014/06/nearly_50_sayerville_targeted_in_sandy_buyouts_to_be_demolished_in_coming_weeks.html
Lol
Libturd at home says:
June 7, 2014 at 10:18 am
Can we just get it out of the way now and call Luxury Point Xanadu 2?
Can we all just admit that the fight is not really about 1% vs 99% or even Paretto’s Principle 20/80 which represents a lot on this board. Regardless of the model below, each’s 1% will make out great no matter what.
The fight is really about:
Corporate State (US)-aka neo-liberal economics and social policy/neo-conservative foreign policy
vs State Corporatism (China) – aka good old fashion fascism (in China only called communism, but in action they are following Singapore’s Lee aka the GrandPa that makes fascism look good)
vs Autocratic/Criminal State Corporatism (Russia, et al) – (good old fashion power is might, and “we don’t need no stinking badge” approach to everything).
[8] anon
Heck yeah.
Let’s go to the range sometime so you can learn about firearms properly. We will start with the basics. You can help by holding up the targets.
I like Geithner’s new book….have you read it? Who the hell would have wanted that job (Treasury Secretary) at that time? Not me. Think he did fine, judging by where the economy is (unemployment trending way down, market up as much as ever) and what I see around me….you forget how bad it was.
Keep waiting for that cadaver to transfuse…I am going on a little joy ride.
Economists are worried. Last month, former Treasury Secretary Lawrence Summers said that student loan debt was taking the life out of the housing recovery, and the Nobel laureate Joseph Stiglitz called the rising debt “an educational crisis” that is “affecting our potential future growth.”
Gotta love Stiglitz. Guy was screaming for us to make loans to people to help them out a few years back. Now, apparently, it’s a problem or an educational crisis. I agree. His sect within academia has poisoned intellectual honesty.
as much as you morons hate him, Stewart has been one of the few to challenge the BS
I love Stewart. He’s a funny guy and a genius of a comedian. But lets not kid ourselves, people have been screaming about Geithner for years. It was people like you that labeled a large percentage of them “right wing nutjobs”. A better question for Geithner would have been, “if the bailout was necessary, why was it necessary to pay bad actors 100 cents on the dollar for their worthless assets as opposed to say….95 cents on the dollar?”
Stewart didn’t even challenge him in that respect.
Godzilla,
Other better alternatives are possible. A political and economic system based on individual rights and voluntary exchange, for example.
Ccb223,
There you go again
Appreciate this forum for crude and unusual candor. But I have a serious question.
UNC? Do people actually pay money to attend this crap hole? My daughter wants to go there for some god awful reason. Your unbiased opinion is most appreciative.
Can someone help me out. My friend claims that QE program is not printing up money. I told him that I don’t care if it’s not literally issuing new currency, it still is coming up with money from thin air. I told him banks lost their money, the fed gave them imaginary money to fill their books so that they can loan again. How am I seeing this wrong?
http://www.cnbc.com/id/100760150 -this article pushing the same argument that my friend was trying to debate me with. These points in quotes are what I was trying to get through to him. Value has to come from somewhere, otherwise the currency is not real.
“You missed the next important step! The government (Treasury) now wants to borrow money (40, say) by issuing T-bonds and Bank ABC would like more T-bonds, as it now has zero.
So Bank ABC transfers 40 in reserves to the Treasury’s bank account and the Treasury gives 40 in T-bonds to Bank ABC. Now Bank ABC is back to its original balance sheet.
But the Treasury’s bank now has 40 more in reserves and a matching 40 more in liabilities to the Treasury. The government (Treasury) owes 100 in T-bonds, but importantly now has 95 in money..
The net effect? The central bank has expanded its reserves by 40 and T-bond assets by 40. The government (Treasury) has expanded its borrowing liabilities (T-bonds) by 40 and now has 40 more money to spend.
So the government has indirectly borrowed 40 from the central bank. *That 40 is brand new, did not exist before*. So QE definitely IS printing money!
The reason it isn’t inflationary is because private individuals are paying down debt at the same time, which is deflationary. The government increases debt (inflationary) as a counterbalance.
Conversely, as private individuals start to borrow more, we will see inflation rise if government borrowing isn’t cut.”
“Ok, time for a rebuttal.
QE doesn’t go straight into bank lending, correct. However, you highlighted that it leads to an increase in bank reserves – which is a “store of value”.
You also highlighted that these reserves are often held in bonds or equities, and so QE may result in a shift of money between asset classes – from bonds to equities, for example.
An additional fact – if the fed is buying bonds in the market, it *will* push up equity markets – as bond holders or bond buyers – unable to get the yield or income they require – are forced into equity markets. And existing bond buyers cash out and move that money into equities as well, or into cash which is then spent.
In both these cases, inflation results. More money in equities means appreciation of equity values and more money for asset-rich equity holders – usually the rich or “1%”. It may also result in more money for companies – as they are able to raise more from IPOs, capital raisings, etc. in a stronger equity market.
However, this money will end up in the pockets of the richest first – and will not necessarily filter down to the poorest – if the rich feel that they do not want to invest in the country, given the economic circumstance. It may also end up in foreign equity markets, depressing the currency as investors sell USD for -example – BRL.
In both cases, inflation – the lessening value of USD – results. Although it is , sure, a slower process (because much of the newly created money may stay with the 1% and not filter down) than it would be if the government gave the money directly to banks to be lent out.”
“The article ignores the fact that the process starts with the selling of debt by the Federal government. This debt ends up at the Fed, who have not sterilized the purchase by selling other assets. The only thing that makes this different from the Fed simply writing in increases to both sides of the government balance sheet is the relatively meaningless detour through the bank. This detour is only to keep the Fed from violating the law prohibiting it from lending directly to the government.”
I stated the same thing on this board. Joyce, you remember? Since you seem to have photographic memory. This is why stocks and expensive real estate (NYC London type properties) are higher than ever.
“In both these cases, inflation results. More money in equities means appreciation of equity values and more money for asset-rich equity holders – usually the rich or “1%”. It may also result in more money for companies – as they are able to raise more from IPOs, capital raisings, etc. in a stronger equity market.
However, this money will end up in the pockets of the richest first – and will not necessarily filter down to the poorest – if the rich feel that they do not want to invest in the country, given the economic circumstance. It may also end up in foreign equity markets, depressing the currency as investors sell USD for -example – BRL.”
” Fed simply writing in increases to both sides of the government balance sheet is the relatively meaningless detour through the bank. This detour is only to keep the Fed from violating the law prohibiting it from lending directly to the government.”
If you think the detour is meaningless, you need to keep reading.
@kasperka: For many of the 1.1m homeless children enrolled in US public schools, college education just seems out of reach http://t.co/wvxZTFzaDG
@F1onNBCSports: And for the first time in 2014, a non-Mercedes car is leading a grand prix! Well done Felipe Massa! #F1onNBC
Anon #23.
But do you realize the amount of these foster kids whose choice is either homelessness or The Armed Forces? Who then sign up for the Armed Services and did tours in our wars in the last 20+yrs, and went on to see nasty things.
So start out emotionally compromised/cripple because of lack of family. Add a nice dose of nice traumatic experience leaving the 96% that are not sociopath suffering PTSD (the 4% sociopath can handle it and actually thrive in it).
Compounding the problem is the following. The armed forces are very good at screening out the mentally ill. Mental illness usually shows up in late adolescence and early twenties. During the draft era these kids were medically discharged and sent to the VA Health System. During our present volunteer era, the armed forces needs all the bodies it could get, so they get heavily medicated and sent back or kept in duty.
So add up all of the above, and you can see there is no VA, or entity that is able to put humpty dumpty back together. What we as a society going to encounter socially over the next 40+ yrs is nasty. As all these angry PTSD humpty dumpty stumble through life. Anyone here that dealt with a Viet Nam service era dysfunctional relative think of that and double it.
To Ragnar #16:
Ragnar, please you really can be this naive? Or were you home school and did not learn life’s hierarchical lessons in kindergarten? Usually rule one learned is the “realistic golden rule ” – he who has the gold, has the power
Godzilla,
Other better alternatives are possible. A political and economic system based on individual rights and voluntary exchange, for example.
I went to see this one. Beautiful, right? Awesome price, right? Wrong and wrong. Pictures are deceiving, are they not? A vast, cavernous space greets you as you walk through the front door. I saw a zillion dollar signs trying to heat the place. The open foyer and landing above has got to be 40% of the house. Immense open, wasted space!
The whole place was totally illogical. The kitchen was a wreck – both in layout and otherwise. Look at it. It’s 10 times worse in person. The cabinets were cardboard. The upstairs main bath had a tub inlay over the old one. The master bedroom didn’t have a walk in type closet but the other two bedrooms did. There was an obscure office space on the first floor.
There were so many little wasted openings, carpet over plywood and strange layouts – too numerous to mention. This one was a real chop shop job. What a shame.
http://www.trulia.com/property/3153981294-17-Cottage-Ln-Upper-Saddle-River-NJ-07458
You heard it here first. Now the rest of the country is hearing it . . .
http://news.yahoo.com/obama-executive-steps-student-loans-233611442–politics.html
@WSJ: Breaking:
Three people were killed in a shooting at a Las Vegas Wal-Mart, according to police reports.
http://t.co/DlB5qXdAPp
27
Well, similar to Congress, he/they just do xyz and announce they have “authority” to do so… and nobody blinks an eye.
But don’t worry, the government will investigate itself and get to the bottom of it.
Squire me around in something more dignified she said….911 I said? OK…she says. Used 4S a good idea or not. Opinions?