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Another way to put it is that Coronavirus is forcing people to realize that we’ve been papering-over weaknesses with easy money for quite some time. That said,
by gdubs 7y ago
Another way to put it is that Coronavirus is forcing people to realize that we’ve been papering-over weaknesses with easy money for quite some time. That said, “economists have predicted 5 out of the last 3 recessions” — people have been warning against one for years now.
But the problem is that coronavirus is threatening the real “brick and mortar” economy — travel, restaurants, retail, etc. Its hard to address that without fiscal stimulus, and we haven’t seen much talk in terms of that yet.
Add to the list sub-prime auto loans, a huge amount of student loan debt...
- tmpz22 7y agoIt would be interesting to see what percentage of student loans are serviced by brick and mortar retail, bar tending, barista, etc. types of gigs.
- toomuchtodo 7y agohttps://www.nbcnews.com/news/us-news/student-loan-statistics-2019-n997836 https://www.nbcnews.com/news/us-news/student-loan-statistics... Check out the graphs presented, particularly the last one. Default is very likely for those most likely to have student loan debt (younger workers in lower quality service jobs), but there isn't a systemic risk as the federal government is the insurer of last resort. These are loans in name only; they are, in actuality, taxes you can't default on (or so was traditionally thought; we're making headway in having the ability to default on these obligations and get out from underneath them [1]). [1] https://www.natlawreview.com/article/student-loan-discharged-bankruptcy-just-blip-or-something-bigger https://www.natlawreview.com/article/student-loan-discharged...