AuthorTopic: Clinton’s Gift to Bankers Made Student Loans the ONLY exception to Bankruptcy  (Read 5592 times)

Offline g

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Clinton’s Gift to Bankers Made Student Loans the ONLY exception to Bankruptcy along side taxes

                                         

QUESTION:  Dear Mr. Armstrong,
Since watching ‘The Forecaster’ I read your blog daily: thank you for all you have done to make sense out of the current phase of the economic cycle we are in.  Some call it the fourth turning or winter and it helps to see the bigger picture.
About the loans: how do we go about reversing this “…standard consumer fraud since Hillary is the one who supported the bankers in making student loans non-dischargeable in bankruptcy.”  How do we undo this new ruling?  Will we have to wait until the economy stops functioning, or is there a legal process to undo it.
Respectfully,

Laura

ANSWER: Excluding student loans from bankruptcy was the Clinton gift to the bankers. It was very detrimental for it encourages education to expand prices dramatically knowing there was no now practical check and balance. so it made education far worse.

The end-result will be a default, but it is unlikely that politicians will rise up in favor of students. The bankers pay for their elections so do not count on government for or by the people. That does not exist.

History says this will end very badly. We will see a rise in civil unrest and this can be the seed to a major political revolution down the road. The bankers converted student loans into debtor’s prison, which was outlawed because it was so abusive. There is no reasonable way out of this mess because the bankers bought Washington and if Clinton were to get in, forget it. She will NEVER admit the Clintons ever did anything wrong.

 http://www.armstrongeconomics.com/archives/41027  :icon_study:

Offline roamer

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Out of all the scams in our increasingly racket driven scam ridden economy this one strikes me as the most perverse.  The whole educational system drills it into kids heads college is the one and only way to success, the parents the schools all reinforce.  Too bad it turns out to be largely a way to indebt and indoctrinate most of our ambitious youth into total muddle headed confusion.  I recommend trade schools, internships, apprenticeships, real world experience, and technical schools to anyone not very clear on their educational objectives and its financial costs. 

Offline g

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Out of all the scams in our increasingly racket driven scam ridden economy this one strikes me as the most perverse.  The whole educational system drills it into kids heads college is the one and only way to success, the parents the schools all reinforce.  Too bad it turns out to be largely a way to indebt and indoctrinate most of our ambitious youth into total muddle headed confusion.  I recommend trade schools, internships, apprenticeships, real world experience, and technical schools to anyone not very clear on their educational objectives and its financial costs.

Hi Roamer,  Would like to view this in the context of the exchange you were having with RE as to responsibility and blame.

While fully sharing your view that we all share in this travesty to an extent, namely, what the elite do to us;  my honest feeling is that these kids are being duped and chained to debt by evil scuzz balls.

Yes, your correct we all share responsibility for allowing it.  Yes, we voted the scum bags in.

However, my view that you were stretching it a bit with regard to responsibility is illustrated by this posting.

Certain folks are entrusted by the majority of us to be responsible, honest, caring for the interests of the folks who empowered them to be leaders.
These people betrayed that Trust and Honor, sold eager impressionable kids down the river for life to feather their own filthy pockets. On any scale, their evil and responsibility would tip the scales in their direction and overwhelm the other side.

This is why war tribunals seeking justice for war crimes prosecute the generals and government officials, not the foot soldiers, in most cases.

Your points in the exchange with RE were valid, please don't regard this as dismissing them, it's just that in the Blame and Responsibility department the blame tilts heavily toward TPTB. RE was more accurate IMO, not totally; as you point out we have to have personal responsibility as well, to be an informed educated citizenry.

"To Whom Much is Given, Much is Required"

But he who, without knowledge, did things for which punishment is given, will get only a small number of blows. The man to whom much is given, will have to give much; if much is given into his care, of him more will be requested.
- Basic English Bible


Offline roamer

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GO, Its not that I don't agree that elites have in many situations rigged the deck when allowed.  That is to be expected and blaming them is like blaming the fox for raiding the hen house.  I blame us because we have lost our vigilance and let ourselves become disengaged and filled with so much sensless bullshit.  I also blame us because it is only the broader populace that could do anything about the future of the US.  It takes an engaged interested populace to have  a democracy, we've lost that and that is IMO is the cause while the evil elites are the symptom.

Offline RE

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It takes an engaged interested populace to have  a democracy, we've lost that and that is IMO is the cause while the evil elites are the symptom.

We've never had a Democracy in the FSoA, it's been a Plutocracy since the very beginning.  In fact I would make the case that democracy has never existed in any large nation state since the idea of democracy first sprang up in Greece a few millenia back.  The Greeks and Romans certainly weren't democratic, they had slaves all over the place.  Here in the FSoA, we had explicit slaves right up through the 1850s, replaced after that by economic slavery to the Elite and their banking & credit system.  "Democracy" is Window Dressing to make J6P THINK he has some power, and to trick people into blaming themselves for the misery caused by the Elite with their rapaciousness and greed.  They are the responsible ones, they have the power, not J6P.  Blaming the Victim is counterproductive to real change and a Better Tomorrow.

RE
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Offline roamer

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RE, I think we had a short period that approximated a democracy.  Post WWII until 1970ish saw the rise and beginning of decline of the middle class.

Offline g

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GO, Its not that I don't agree that elites have in many situations rigged the deck when allowed.  That is to be expected and blaming them is like blaming the fox for raiding the hen house.  I blame us because we have lost our vigilance and let ourselves become disengaged and filled with so much sensless bullshit.  I also blame us because it is only the broader populace that could do anything about the future of the US.  It takes an engaged interested populace to have  a democracy, we've lost that and that is IMO is the cause while the evil elites are the symptom.

IMO you are projecting your mental status and abilities upon others who do not have your gifts.

A fox, despite his name, is a dumb animal that kills to eat or survive.

An elitist who takes advantage of those weaker, who trust him because he is supposedly wiser and a leader, is an evil depraved human that has to be held to a much higher standard than the ordinary man who goes about his life earning a living and who entrusts these people to do the business of governing and representing fairly.

If I get ill I go to a doctor. If he sticks me with a prescription for a harmful drug in a company he owns stock in and gets paid for each scrip he writes, is he a fox, or a no good evil prick? A responsible moral Dr would do what is best for his patient.

We have to trust certain people Roamer, and when they betray us they should be held accountable by our legal system.

Offline RE

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RE, I think we had a short period that approximated a democracy.  Post WWII until 1970ish saw the rise and beginning of decline of the middle class.

I lived through some of that period Roamer.  By no means was it a Democracy.  During this time you had the McCarthy purge, the Assassination of JFK, the Vietnam War, etc.  None of this was democratic.  It goes back way further than that as well.  In the words of Woodrow Wilson:


RE
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Offline roamer

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GO, I agree with you about holding our leaders accountable.  We ought to be having a trial for many of the TBTF banksters who helped precipitate the 2008 crash and then profited.  But we'll only arrive such actions if we can actually discuss and identify such crooks as a public.  Iceland managed to do this and that we are not is our fault not the crooks.


RE, None of those events disprove that we had a democracy.  There has never been a perfect government in known history.  The point I was making was that during that period we had a large middle class and that class had the ability to make choices much more conducive to a democracy due to their relative financial stability.  There isn't any obvious reason this has to be stripped from us we still are productive enough economically, its just the gains are concentrating to the corps and elites.  Which is quite a complex problem in itself but one we might have a chance of sorting out if we started really examining it.

Offline RE

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RE, None of those events disprove that we had a democracy.  There has never been a perfect government in known history.  The point I was making was that during that period we had a large middle class and that class had the ability to make choices much more conducive to a democracy due to their relative financial stability.  There isn't any obvious reason this has to be stripped from us we still are productive enough economically, its just the gains are concentrating to the corps and elites.  Which is quite a complex problem in itself but one we might have a chance of sorting out if we started really examining it.

We only had a large middle class because there was plenty of cheap energy available and because it was beneficial to the Elite for the build out phase of the system.  Said middle class never had any power regardless of the Window Dressing "democracy" they and their children were sold on through the media and the education system.  Most young people think there was democracy back when there was a large middle class.  This is a canard, one apparently you buy into.

RE
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Offline RE

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Lousiana now REQUIRES HS Grads to apply for College Loans
« Reply #10 on: December 27, 2015, 01:24:55 PM »
Surreal.  You can't get your HS Diploma if you don't apply for a College Loan in LA.  ::)

RE

investmentresearchdynamics.com/atlas-shrugged/

Atlas Shrugged


December 24, 2015Financial Markets, U.S. EconomyAtlas Shrugged, credit bubble, student loan bubble

A friend sent me a news item from U.S. News and World Report which reported that Louisiana’s board of education is going to implement a new policy which requires all students to fill out a Free Application for Federal Student Aid in order to receive a high school diploma – LINK.

Think about that for a moment.  In order to receive a high diploma, the State of Louisiana is requiring that high school seniors fill out an application which would enable them to go into debt the moment they receive their diploma.

This is a mind-blowing event.  Most jobs available to high school grads do not require a college degree.  But some might require a high school diploma.  I have to wonder what the motive is behind this.  A significant portion of student debt is now being used for corporate-owned “universities” which are largely worthless to everyone except the entities who own the schools.  Goldman Sachs is a big player in this space.   Student debt, backed by the Taxpayer, is just another form of wealth transfer from the public to the banks and big corporations.


The amount of student debt issued and outstanding is now over $1.3 trillion. Obama pats himself on the back because student loan delinquency rates are falling a bit.  But this is because he has made it easier to defer payment – LINK.  While 11.5% – roughly $150 billion – is in delinquency, about 50% of this debt is in some form of grace period, deferment or forebearance.  Loans in deferment are not part of the delinquency rate calculation.  The true level of delinquency and technical default is probably somewhere in the 35-45% range.

I have to believe that the requirement being implemented in Louisiana is violating some part of the Constitution.  Of course, with the simple stroke of a pen, Obama can override the Constitution with yet another Executive Order upholding this requirement.

This requirement in Louisiana is exactly the type insane laws which were imposed by the Government as described in the narrative laid out in “Atlas Shrugged.”  Acts of mandate which enabled the Government and the corporate friends of the Government to suck wealth from the populace and from productive workers and redistribute the largesse amongst themselves.

We know how the story unfolds in “Atlas Shrugged.”  Unfortunately, I see the same type of story unfolding in the United States.

    If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.  – Thomas Jefferson
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Offline Petty Tyrant

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There has never been a perfect government in known history.  The point I was making was that during that period we had a large middle class and that class had the ability to make choices much more conducive to a democracy due to their relative financial stability.  There isn't any obvious reason this has to be stripped from us we still are productive enough economically, its just the gains are concentrating to the corps and elites.  Which is quite a complex problem in itself but one we might have a chance of sorting out if we started really examining it.

if the middle class were capable of making right decisions because they were wealthy,  but are no longer so no longer can,  whats the problem with those with the wealth now making the decisions? Are u less able to vote if u r poor?

ELEVATE YOUR GAME

Offline RE

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Are u less able to vote if u r poor?

You can vote, but you can't fund the campaign of the folks running for office who get on the ballot.

RE
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Offline Petty Tyrant

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Are u less able to vote if u r poor?

You can vote, but you can't fund the campaign of the folks running for office who get on the ballot.

RE

And if u CAN fund a campaign,  u CANT compete with a sitcom or sports when your candidate appears on tv talking. The lowest common denominator in ethics and apathy winning is the logical conclusion every time.
ELEVATE YOUR GAME

Offline K-Dog

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There has never been a perfect government in known history.



Rome under the Antonines.  The Roman Empire was governed by absolute power, under the guidance of wisdom and virtue.  It was not perfect and Commodus shat on the goodness at the end but while it lasted mankind's happiest days were passed in the second century A.D under the rule of the good emperors.  The system failed when succession by merit was replaced by hereditary rule.

Under ideal conditions of temperature and pressure the organism will grow without limit.

 

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