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I believe what they were implying was that such a bubble can only "pop" if a bunch of the debt is discharged at once, which in this case means a bunch of people
by marcelluspye 9y ago
I believe what they were implying was that such a bubble can only "pop" if a bunch of the debt is discharged at once, which in this case means a bunch of people who still owe student loans on their deathbed die with more debt than assets. The commenter suggested trying to figure out when this would happen, and making sure one is ahead of it.
- r00fus 9y ago> and making sure one is ahead of it. I was with you till the last bit. How does one "keep ahead" with that timescale?
- fixermark 9y agoCorrect. The question is what, precisely, you'd use to bet against the student loan market. Since of the people who "successfully" shorted real estate found themselves running into trouble cashing out because the same institutions they'd bet against got hammered when housing popped and themselves defaulted. How do you successfully bet against the stability of the world-stabilizing fiat currency---the one other countries jam under their mattresses to back-stop against domestic economic turmoil?