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how does this bubble pop? isn't this debt something you can't default on?
by mylons 9y ago
how does this bubble pop? isn't this debt something you can't default on?
- chatmasta 9y agoJust because someone can’t default on their loan doesn’t mean they can pay it. It’s also not hard for me to imagine, in the near future, a social media movement like “don’t pay back your loans.”
- mylons 9y agoya, I had this thought as well, but then the IRS garnishes your wages until you die. So how does it pop? Seems like a lot of people would have to go to jail or something along those lines for it to actually happen?
- chatmasta 9y agoThey can only garnish your wages if you’re a W2 employee, or use the banking system. Contractors need to pay their own taxes, and the IRS can’t garnish what it can’t see. Gig economy + cryptocurrency + social media + student loan debt could lead to some very interesting times.
- JumpCrisscross 9y ago“Interesting time” as in jail time for money laundering and wilful tax fraud?
- chatmasta 9y agoIf 80% of millennials collectively decided not to repay their student loans, there would not be enough space in prison for all of them.
- Density 9y agoWell then the cops will be told to shoot them.
- WrtCdEvrydy 9y agoPrison stocks up 80%, overcrowding of scum in prisons unaddressed by current Congress.
- asdjasldkjkljd 9y agoYou can't get 80% of anyone to do anything.
- snuxoll 9y agoYou can die without enough assets to pay off your creditors, debt doesn't pass to kin so anything remaining is written off.
- snuxoll 9y agoYou can still default on student loans, you can't discharge them.
- pascalxus 9y agoAssuming people have to repay it, it'll be a huge drag on the economy, for the entire lifetime of those millenials. Just think, for the next 70 or so years, those millenials will be spending what 10 to 20% or more of their paycheck on those loans. So, it won't pop, it's more like a big slow deflation. It's the same for the gov't debt too. Even if they millenials can get out of paying for it, it'll still be passed on to tax payers, so the effect will be the same, a very long period of reduced consumer spending, leading to less economic growth.