4 ms·
>On the federal side, increasing defaults mostly reduce the difference between loans and grants Interesting tidbit here is that half (yes, half) of the US gove
by nopriorarrests 8y ago
>On the federal side, increasing defaults mostly reduce the difference between loans and grants
Interesting tidbit here is that half (yes, half) of the US government's financial assets are student loans.
It was discussed here previously -- https://news.ycombinator.com/item?id=16136330 https://news.ycombinator.com/item?id=16136330.
Something I find very hard to comprehend, tbh.
- acover 8y agoI believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans. https://en.wikipedia.org/wiki/Fannie_Mae https://en.wikipedia.org/wiki/Fannie_Mae
- dragonwriter 8y ago> I believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans. Fannie Mae is a publicly-traded, privately-owned corporation, despite being federally chartered for a public mission. So, yes, their holdings are not counted in government holdings, because they aren't the government.
- acover 8y agoYou are right. There is an implicit government backing though with a line of credit from the US Treasury.
- zeusk 8y agoFannie Mae and Freddie Mac are currently under the authority of the Treasury, since the TARP program. Which is why, their stock is worth a lot less than even their own book value.
- heyjudy 8y agoIncluding SGE's is a gray area of what's "business" and what's "commercial."