3 ms·
Yes, the title makes it sound like the US government is in a dire situation because it has its solvency tied to students paying back their loans... But mostly
by d--b 9y ago
Yes, the title makes it sound like the US government is in a dire situation because it has its solvency tied to students paying back their loans...
But mostly the government is a borrower of cash and not a lender.
Here the government is indirectly financing people's education by offering cheaper loans than the market would give. There is not much to talk about...
- prostoalex 9y agoThe rate that the government can borrow at is determined by the quality of underlying assets. US 10-year note is 2.58% at the moment, but Argentina's is 7%.
- marshray 9y agoWell the US is somewhat special in that the dollar (or currencies tied to it) is used by 70% of all global transactions. The other day a minister in China floated the idea of buying less US Treasuries. It became apparent that there just weren't a lot of other instruments available with which to invest that sheer volume of money.