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It helps people who are in debt (there's the student loan reduction Biden's been asking for). In theory, it's a wash for assets like stocks and real estate. It
by dehrmann 5y ago
It helps people who are in debt (there's the student loan reduction Biden's been asking for). In theory, it's a wash for assets like stocks and real estate. It hurts bondholders, so especially retirees.
- grey-area 5y agoThe last 10 years have seen massive asset inflation, unrelated to economic activity.
- donmcronald 5y ago> It helps people who are in debt Does it really though? It definitely helps people who used low, fixed rate debt to buy assets that will appreciate with inflation, but does it really help the average person with $100k in student loans that isn't going to see a wage increase that comes anywhere close to the increased cost of living? IMHO the answer is no.
- dehrmann 5y agoFederal student loans have a fixed interest rate. Assuming inflation makes its way to wages, that makes the education an appreciating asset.