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Saving for retirement? College debt?

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  • Chet Ruminski
    2016-05-03 10:08:34 AM
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    Saving for retirement is just making people pay back their salaries. College debt means they can't wait for people to start work and saving. They want people to pay back their future wages before starting to work, can't wait to get at their money in a savings account. People can take horrible abuses without complaining. The new poverty level when college debt graduates also start saving for retirement, paying back college debt and saving for kids education will be about $75,000 . How is that Wall Street? What new ways can be left to get everybody's money?

    I have said for many many years that big money will keep leveraging all the possible sources of income until nothing is left. Fx (0). When nothing is left. How many people realize that having to save for retirement and paying back college debt are the results of the right cutting spending and making people pay back the entitlements. How much money will people have to make to: save for retirement, save for their kids college education and pay back college debt. That should have bèen Bernie's campaign. No promises, just a look at reality.

    Take note incrementalists.

  • Chet Ruminski
    2016-05-03 10:34:48 AM
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    Our system is cyclical bubbles. Some made and will make the history books. The infrequency of the big ones make people forget that bubbles are a cycle. I know people in their sixties with college debt. That is some of the support I have for saying that the1.2 trillion dollar college debt will be the biggest bubble yet. Guess what, the bail out is already law. A huge part of that debt is guaranteed by the USA. Incrementalling along into cataclysmic disater. Remember : Saving for retirement, saving for kids college, paying back college debt. Where we're the parents when this big debt party was thrown?
  • jaredsxtn
    2016-05-03 03:17:56 PM
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    I'm not sure I follow you at all here. Where did you get that $75,000 a year is the new poverty level? Out of thin air??

    There are also plenty of programs out there for people who took out student loans to defer them for a certain amount of time or place their payments on hold if they lose their job.

    The right hasn't cut spending at all. What the right has done is cut the federal tax rate. The spending is still there, but it's just on the credit card now.

    This is a complicated subject and college is expensive for a variety of reasons. States are cutting back their investments in state universities, which in turn drives the cost of tuition up. Students want their college to be like a resort with the best housing, food, and amenities that one can imagine, which also drives the cost of college up. Professors don't work for free and they also need cutting edge technologies to be able to continue moving us into the 21st Century, which also drives the cost of college up.

    It's not as simple as blaming Wall Street.

    I would love nothing more than shifting some of the money we spend on 'defense' to education, but we have to elect politicians who are willing to do that.

  • Chet Ruminski
    2016-05-03 03:47:09 PM
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    College is getting expensive because they can't spend the NINJA loan money fast enough. $75,000 gets to be the new poverty level because people will be putting out $1000 for student loans, $1000 for kids efucation, $1000 for retirement. To have an extra $36000 discretionary money would require at least 75k income. Spending has been cut in multiple ways. Education is one big one , welfare is another.
  • jaredsxtn
    2016-05-03 04:49:07 PM
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    Chet Ruminski Wrote: College is getting expensive because they can't spend the NINJA loan money fast enough. $75,000 gets to be the new poverty level because people will be putting out $1000 for student loans, $1000 for kids efucation, $1000 for retirement. To have an extra $36000 discretionary money would require at least 75k income. Spending has been cut in multiple ways. Education is one big one , welfare is another.

    What in the world does college tuition have to do with a no income-no asset mortgage? That's like saying a basketball and football are the same thing because they both have ball in their names.

    The current average student loan payment is roughly $280/month, not $1,000. And if a family is able to put away $1,000 a month for their children's education then they won't have to worry about any student loans because they will be able to pay their tuition, room, and board in cash.

    Also--when did $36,000 a year become "discretionary money"? I'm not saying that's rich, but if someone has $36,000 a year in discretionary spending then they aren't spending too much time worrying about where the next meal is going to come from.

  • Chet Ruminski
    2016-05-03 07:26:29 PM
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    jaredsxtn said: "What in the world does college tuition have to do with a no income-no asset mortgage? That's like saying a basketball and football are the same thing because they both have ball in their names."

    Seriously j? NINJA is an acronym for a qualification for a loan that doesn't require proof of Income, Job or Assets. It is not a mortgage. NINJA qualifying was instrumental in bursting the sub'prime mortgage bubble. I said that the 1.2 Trillion dollar college debt that is NINJA qualified is the biggest bubble yet. I can see very bad outcomings from that debt of which a significant amount already hasn't been serviced. 1.2 Trillion Dollars ranks close to the numerically of the size of county's wealth. I think around 7th. Furthest jeopardy comes in the reality that once college indebted kids start to work, their incomes would probably not qualify for the college loans they have. I have talked to multiple people out of school for years that continue to defer college loan payments. To me this is obvious signs of trouble.

  • Chet Ruminski
    2016-05-03 07:40:22 PM
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    BTW the original intent of NINJA qualifying was not to require proof from individuals that stood well above the requirements for loan qualifications. Not until the subprime fraud was it interpreted by originators to mean that people actually had no income and no job and no assets. Prior to the subprime fraud NINJA was a courtesy extended to the famously rich.
  • Carlitos
    2016-05-04 12:22:45 AM
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    Chet, that is correct. Stated-Income Loans were originally designed to deal with the problem that banks faced back when the financial system and maybe the economy itself was a lot more simple. Simply put, when making a Stated-Income Loan, the bank was confident that that borrower was good for the loan based on an understanding of their business or income flows, but the paperwork verification interfered with the timeliness of the loan for the borrower. In other words, there was some underwriting and verification of incomes; it just wasn't all officially recognized before the loan was made.

    The story of Liar's Loans begins in Orange County in the early 1990s with a firm called Long Beach Savings and Loan; they would later give up federal deposit insurance to become a shadow mortgage bank known as Ameriquest.

    In the early 1990's Long Beach Savings and Loans began to make Liar's Loan mortgages to anyone they could find off the street. No prior relationship, no understanding of their cash flows. The Office of Thrift Supervision-West, whose head litigator was William K. Black, put a stop to this once they saw what was happening. Long Beach Savings and Loans would give up federal deposit insurance to escape OTC-West regulators and become a mortgage "bank." They would go on to become one of the leading progenitors of Liar's Loans. It all could have been stopped by the Federal Reserve under HOEPA, which Ben Bernake eventually cited to ban Liar's Loans.

  • Chet Ruminski
    2016-05-04 07:56:51 AM
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    I don't know if a signature loan is analogous to a NINJA loan but it also referred to a personal understanding. Now the term signature means buyer beware.
  • Chet Ruminski
    2016-05-04 08:14:51 AM
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    The push for more false security to build bigger accounts to manage is on right in the face of Dodd/Frank.

    neweconomicperspectives.org/2016/02/man...

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