Bill Holter’s Commentary
Up is down, in is out and wrong is right…just remember, one man’s debt is another man’s asset so when one does not pay another is not paid!
No Payment, No Problem: Bizarre New World of Consumer Debt
August 7, 2020
All kinds of weird records are being broken. But it’s scheduled to expire, and then what?
By Wolf Richter for WOLF STREET.
The New York Fed released a doozie of a household credit report. It summarized what individual lenders have been reporting about their own practices: If you can’t make the payments on your mortgage, auto loan, credit card debt, or student loan, just ask for a deferral or forbearance, and you won’t have to make the payments, and the loan won’t count as delinquent if it wasn’t delinquent before. And even if it was delinquent before, you can “cure” a delinquency by getting the loan deferred and modified. No payment, no problem.
Nearly all student loans go into forbearance, delinquencies plunge.
Student loan borrowers were automatically rolled into forbearance under the CARES Act, and even though many students had stopped making payments, delinquency rates plunged because the Department of Education had decided to report as “current” all those loans that are in forbearance, even if they were delinquent. Yup, according to New York Fed data, the delinquency rate of student loan borrowers, though many had stopped making payments, plunged from 10.75% in Q1, to 6.97% in Q2, the lowest since 2007:
Bill Holter’s Commentary
Many words come to mind but let’s use “immature” rather than something more inflammatory and descriptive. Maybe we should just cancel all classes, forever, and hand out degrees? That might be better as students would have less “indoctrination” that way? We should also pay all professors and new graduates for a life of zero work because that is their God given right? Not really sure what the spark will be but at this point it seems a very violent future is in store for us all…! And here I thought the book Animal Farm was total fiction when I was a kid, little did I know it foretold our future?
Faculty, Students Across US Hold ‘Die-Ins’ To Protest Return To Campus
August 9, 2020
As the fall semester approaches, students from universities across the United States are holding protests, marches, and “die-ins” to denounce the return of in-person classes.
Most American universities are entering the fall semester under a hybrid model of virtual learning and in-person instruction. However, student activists believe that these decisions are motivated by money- not the health and well-being of students.
Protesters are correct in assuming that there are financial consequences for universities moving to only online instruction. Postsecondary institutions across the United States are watching their summer and fall enrollment plummet as they adapt to virtual learning. Many are laying off faculty and cutting budgets by as much as 25 percent.