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OT: Stock and Investment Talk

ScarletNut said:
Call me naive but I don't understand why student loans should be forgiven when so many of us had to repay those loans. If I thought there was any chance of forgiveness, I wouldn't have fully paid for my kids' college education instead of taking out a loan that they wouldn't have to repay.
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Because a group of people with student loans got together and said since the government bailed out so many other people and companies since 2008 it is only fair that you bail us out too.

The argument against them was we had to bail all those other entities out to save the economy to which the student loan group made the case that the burden of these loans is having a severe impact on the economy because the group is so large.

I do not really get upset that some group wants government largess since everyone thinks they deserve it but the other guy does not.

Farm subsidies bank bailouts, special tax incentives, rebate programs, EITC, subsidized flood insurance.
 
tom1944 said:
Because a group of people with student loans got together and said since the government bailed out so many other people and companies since 2008 it is only fair that you bail us out too.

The argument against them was we had to bail all those other entities out to save the economy to which the student loan group made the case that the burden of these loans is having a severe impact on the economy because the group is so large.

I do not really get upset that some group wants government largess since everyone thinks they deserve it but the other guy does not.

Farm subsidies bank bailouts, special tax incentives, rebate programs, EITC, subsidized flood insurance.
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I’m against most bailouts and subsidies but not all. For instance, I think as a country we bought into the “comparative advantage” theory of economics. That works fine in a text book but not in a politically charged geopolitical environment we find ourselves in. As a country, we lost or surrendered many manufacturing capabilities to get products and services a nickel cheaper. We now find ourselves dependent on unfriendly foreign countries for many pharmaceuticals, chips, energy, and other necessities. I’m okay with subsidies and tax incentives—in a responsible manner—to lessen our dependency on other countries.
 
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T2Kplus20 said:
Are so many people this foolish and irresponsible? I guess so.

thehill.com

Nearly three-quarters of millennials are living paycheck to paycheck: report

Almost three-quarters of millennials are living paycheck to paycheck, notably higher than other generations, according to a new report. PYMNTS, which reports on financial news and data, and t…
thehill.com thehill.com
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What do you think

www.cnbc.com

31% of new crypto buyers influenced by friends. Here’s why that can be 'a horrible idea,' advisor says

A third of new cryptocurrency investors are primarily motivated by friends to make their purchase. It may not always be sage advice, experts warn.
www.cnbc.com www.cnbc.com
 
T2Kplus20 said:
Are so many people this foolish and irresponsible? I guess so.

thehill.com

Nearly three-quarters of millennials are living paycheck to paycheck: report

Almost three-quarters of millennials are living paycheck to paycheck, notably higher than other generations, according to a new report. PYMNTS, which reports on financial news and data, and t…
thehill.com thehill.com
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I wouldn’t be surprised if loan forbearance and/or possibility of forgiveness fueled a ton of inflation, especially in the housing market. If people go from making that monthly loan payment to then all of a sudden paying nothing you know they are going to turn around and spend more on anything and everything. The whole idea of loan forgiveness is infuriating when my wife and I both paid ours off, many times struggling to balance the monthly budget when we were starting off. And we also had daycare to wrestle with at $2K+ p/mo (no WFH). We bought our first home in 2006 when the market was out of control and simply had to buy something smaller than the dream. How could anyone possibly think they are entitled to loan forgiveness? It’s not that they don’t have the money to pay or can’t make it work through self sacrifice, they just want to spend it on other BS.
 
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RUAldo said:
I wouldn’t be surprised if loan forbearance and/or possibility of forgiveness fueled a ton of inflation, especially in the housing market. If people go from making that monthly loan payment to then all of a sudden paying nothing you know they are going to turn around and spend more on anything and everything. The whole idea of loan forgiveness is infuriating when my wife and I both paid ours off, many times struggling to balance the monthly budget when we were starting off. And we also had daycare to wrestle with at $2K+ p/mo (no WFH). We bought our first home in 2006 when the market was out of control and simply had to buy something smaller than the dream. How could anyone possibly think they are entitled to loan forgiveness? It’s not that they don’t have the money to pay or can’t make it work through self sacrifice, they just want to spend it on other BS.
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I paid all of mine and I worked a second job to fully pay for my daughter's college.

I do not get annoyed by student loan forgiveness any more than a lot of other government programs.

I actually think they made a mistake in how they set up the program rather than give a $10,000 break they could have just required everyone full pay back the principal and not have to pay interest on that amount. They could have run a formula that limited it to people with a certain amount borrowed. The borrowed amount could have been structured so no one received more than $10,000 savings on the interest amount.

So, you arrive in the same place, but you are not forgiving any principal effectively people are paying what they borrowed but still saving up to $10,000.
 
tom1944 said:
I paid all of mine and I worked a second job to fully pay for my daughter's college.

I do not get annoyed by student loan forgiveness any more than a lot of other government programs.

I actually think they made a mistake in how they set up the program rather than give a $10,000 break they could have just required everyone full pay back the principal and not have to pay interest on that amount. They could have run a formula that limited it to people with a certain amount borrowed. The borrowed amount could have been structured so no one received more than $10,000 savings on the interest amount.

So, you arrive in the same place, but you are not forgiving any principal effectively people are paying what they borrowed but still saving up to $10,000.
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Nope. Pay your fking bills
 
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RUAldo said:
I wouldn’t be surprised if loan forbearance and/or possibility of forgiveness fueled a ton of inflation, especially in the housing market. If people go from making that monthly loan payment to then all of a sudden paying nothing you know they are going to turn around and spend more on anything and everything. The whole idea of loan forgiveness is infuriating when my wife and I both paid ours off, many times struggling to balance the monthly budget when we were starting off. And we also had daycare to wrestle with at $2K+ p/mo (no WFH). We bought our first home in 2006 when the market was out of control and simply had to buy something smaller than the dream. How could anyone possibly think they are entitled to loan forgiveness? It’s not that they don’t have the money to pay or can’t make it work through self sacrifice, they just want to spend it on other BS.
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100% think people looked at this as free cashflow and started using that money for other things. The responsible ones would have kept putting that same amount of money aside in the bank to eventually pay down the loan at a later date(effectively paying down principal faster or freeing up cashflow by drawing down on that for payments)

Instead people used that money for discretionary spending which probably included housing at the time. I am not a fan of hand outs when I see so many people abusing them. Its like PPP money when I notice my neighbor getting it and then another super car shows up in his driveway.
 
Never had a student loan or any of my siblings because our parent sacrifice and saved during their lifetime for us to get a college education. I don’t think any of my relatives will ever depend on student loans. If you don’t save enough then go to a school with lower tuition.

There should be tighter restriction on the total amount a student can receive including any any additional degrees. Colleges need to required to be responsible for a portion of the default loans. Some colleges even give a portion of one year tuition when they might know the student can’t get the tuition to finish the degree. I believe these two changes would reduce the student loan debt problem. Why give any loan forgiveness when it would continue on for the next group of students?
 
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RUAldo said:
I wouldn’t be surprised if loan forbearance and/or possibility of forgiveness fueled a ton of inflation, especially in the housing market. If people go from making that monthly loan payment to then all of a sudden paying nothing you know they are going to turn around and spend more on anything and everything. The whole idea of loan forgiveness is infuriating when my wife and I both paid ours off, many times struggling to balance the monthly budget when we were starting off. And we also had daycare to wrestle with at $2K+ p/mo (no WFH). We bought our first home in 2006 when the market was out of control and simply had to buy something smaller than the dream. How could anyone possibly think they are entitled to loan forgiveness? It’s not that they don’t have the money to pay or can’t make it work through self sacrifice, they just want to spend it on other BS.
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Excellent post. Hits the nail on the head, especially regarding inflation. Gov'ment spending/actions and COVID shutdowns/disruptions were the driving forces of the inflation spike.
 
rutgersdave said:
Never had a student loan or any of my siblings because our parent sacrifice and saved during their lifetime for us to get a college education. I don’t think any of my relatives will ever depend on student loans. If you don’t save enough then go to a school with lower tuition.

There should be tighter restriction on the total amount a student can receive including any any additional degrees. Colleges need to required to be responsible for a portion of the default loans. Some colleges even give a portion of one year tuition when they might know the student can’t get the tuition to finish the degree. I believe these two changes would reduce the student loan debt problem. Why give any loan forgiveness when it would continue on for the next group of students?
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The increase of gov'ment students loans is the direct cause of spiraling tuition costs. Whenever a 3rd party pays the bill instead of the customer, supply and demand gets out of whack and costs skyrocket (nobody has incentive to be cost effective). Same exact dynamic with the rise of full coverage health care insurance. Seriously, who has the incentive to keep costs down when premiums cover everything? Insurance is meant for catastrophic coverage.
 
RUBlackout said:
The responsible ones would have kept putting that same amount of money aside in the bank to eventually pay down the loan at a later date(effectively paying down principal faster or freeing up cashflow by drawing down on that for payments)

Instead people used that money for discretionary spending which probably included housing at the time.
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Always seems like responsible ones get screwed. During Financial Crisis, my buddy stopped paying his mortgage…completely underwater and overextended on a house he overpaid for. Out of the blue, gets a call from debt consolidation company that bought his loan for pennies on the dollar. They reduced his mortgage by 60% and put him on a plan. Two months later he sells the house and walks away with like $50K in his pocket and virtually no impact to his credit. In the meantime, I bought and sold around the same time he did, went for the “fixer upper”, paid my mortgage on time, but still lost like $50K. In total, it was like a $170K gift/swing for him. Just wait until Biden starts forgiving mortgages for the people that can’t pay because they now have to repay their student loans.
 
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RUAldo said:
Always seems like responsible ones get screwed. During Financial Crisis, my buddy stopped paying his mortgage…completely underwater and overextended on a house he overpaid for. Out of the blue, gets a call from debt consolidation company that bought his loan for pennies on the dollar. They reduced his mortgage by 60% and put him on a plan. Two months later he sells the house and walks away with like $50K in his pocket and virtually no impact to his credit. In the meantime, I bought and sold around the same time he did, went for the “fixer upper”, paid my mortgage on time, but still lost like $50K. In total, it was like a $170K gift/swing for him. Just wait until Biden starts forgiving mortgages for the people that can’t pay because they have to now have repay their student loans.
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the problem is the courts have been 'liberalized' and politicized and less and less are following the law
 
RUAldo said:
Always seems like responsible ones get screwed. During Financial Crisis, my buddy stopped paying his mortgage…completely underwater and overextended on a house he overpaid for. Out of the blue, gets a call from debt consolidation company that bought his loan for pennies on the dollar. They reduced his mortgage by 60% and put him on a plan. Two months later he sells the house and walks away with like $50K in his pocket and virtually no impact to his credit. In the meantime, I bought and sold around the same time he did, went for the “fixer upper”, paid my mortgage on time, but still lost like $50K. In total, it was like a $170K gift/swing for him. Just wait until Biden starts forgiving mortgages for the people that can’t pay because they now have to repay their student loans.
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Have exactly the same story on my end. Makes me think I’m the sucker by doing the right things
 
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RUBlackout said:
Have exactly the same story on my end. Makes me think I’m the sucker by doing the right things
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Sucka! :)

bright-fun-colorful-swirl-lollipop-on-pink-background.jpg
 
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From the article:

The crisis that led to the downfall of three regional U.S. banks in recent weeks is largely over after the resolution of First Republic, according to JPMorgan Chase CEO Jamie Dimon.

JPMorgan emerged as the winner of a weekend auction for First Republic after regulators decided that time had run out on a private sector solution.

“There are only so many banks that were offsides this way,” Dimon told analysts in a call shortly after the deal was announced.

“There may be another smaller one, but this pretty much resolves them all,” Dimon said. “This part of the crisis is over.”

www.cnbc.com

Jamie Dimon says 'this part of the crisis is over' after JPMorgan Chase buys First Republic

JPMorgan Chase, which acquired banking assets in the 2008 financial crisis, just won an auction to gain even more size with the takeover of First Republic.
www.cnbc.com www.cnbc.com
 
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rutgersguy1 said:
From the article:

The crisis that led to the downfall of three regional U.S. banks in recent weeks is largely over after the resolution of First Republic, according to JPMorgan Chase CEO Jamie Dimon.

JPMorgan emerged as the winner of a weekend auction for First Republic after regulators decided that time had run out on a private sector solution.

“There are only so many banks that were offsides this way,” Dimon told analysts in a call shortly after the deal was announced.

“There may be another smaller one, but this pretty much resolves them all,” Dimon said. “This part of the crisis is over.”

www.cnbc.com

Jamie Dimon says 'this part of the crisis is over' after JPMorgan Chase buys First Republic

JPMorgan Chase, which acquired banking assets in the 2008 financial crisis, just won an auction to gain even more size with the takeover of First Republic.
www.cnbc.com www.cnbc.com
Click to expand...
Sounds good. Hope Dimon is right.
 
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RUTGERS95 said:
way way too many mid size banks with $hitty management. you only saw two
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Totally agree. In my opinion, the Board and senior management completely failed to recognize/address credit risk and interest rate risk, among others. That’s not to say that the SF Fed shouldn’t have acted sooner; but rather, the primary responsibility lies with the company Board and management.
 
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RUDead said:
Imagine the gov shutting down and we need another bank bailout.
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If we get close to the deadline/shutdown.....BUY HEAVY any dip due to stupid Washington. We all know such a crisis is only temporary. Easy money!
 
phs73rc77gsm83 said:
Totally agree. In my opinion, the Board and senior management completely failed to recognize/address credit risk and interest rate risk, among others. That’s not to say that the SF Fed shouldn’t have acted sooner; but rather, the primary responsibility lies with the company Board and management.
Click to expand...
Fed was stupid and also to blame for all this as well. Stupid policy in 2021 led to even more stupid policy in 2022 in attempt to correct their mistake.
 
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