I am trying to figure out how any responsible lender could justify floating a half million loan to a kid without some insurance on the investment ........
In THIs day and age ,with govt takeover of health care , what percentage of these kids will ever live long enough to see enough patients to make more than a million dollars that does not go to student loans , fed taxes , state taxes , insurance , county tax , social security tax , medicaretax ?? Probably have to pull in millions ....
Last edited by oyarde; 03-25-2012 at 09:21 PM.
How many would ever repay this loan ??
Thats ok. Daddy through his political connections he will have some foreign bank pay off the loan as a favor and have the tax payers pay for it. Either that or daddy will get him some $1 million/yr job mowing grass.
And to think , in the past six years or so , I have wasted time reading articles about the avg American family having 9k in credit card debt , pfft .
The problem is you either get a degree and become a debt slave or live in poverty the rest of your life. Far too many useless degrees and fluff jobs that require degrees now. Don't get me wrong, I want my doctor to have medical degree. I want the guy who designed the bridge I drive over every day to have an engineering degree. But you have places requiring degrees for positions like fast food restaurant and gas station managers. Degrees to be a salesman. Degrees in criminal justice to be a detective, when several friends of mine who are cops say the "promotion" to detective is more like punishment (more work, no extra pay). I'm not even going to touch all the useless art degrees and such...they pretty much speak for themselves. Something really needs to change in our society, and fast.
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Didn't you hear? All you need is knowledge in social medicine to be a central banker.Originally Posted by The_Ruffneck
Dishonest money makes for dishonest people.
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NOBP ≠ ABODr. Paul is living rent-free in the minds of the neocons, and for a fiscal conservative, free rent is always a good thing
$400K in student debt?
Means three things:
1. Not all that smart (no scholarships)
2. An obsession with being associated with the elite (only overpriced "first class" schools)
3. Not good at making smart financial decisions, not concerned with reality or efficiency.
I'd say: like father like son.
What does the Alternate CPI track? And some things like oil or food have been going up fast for many reasons, not just because of an expansion in the money supply. Threatening to attack Iran which causes Iran to threaten to close off the Strait of Hormuz is skyrocketing oil prices. There is also a large increase in global demand, that's what's driving the prices up.In some sectors it already is. See healthcare, oil, and food prices.
The Heart of Conservatism is Libertarianism - Ronald Reagan
Every decade, based on census data, the "basket of goods" (which includes thousands of things) which comprise the CPI and how much weighting those things get is updated. The "alternstive CPI" uses the one created based on the 1980 census- assuming that people's spending habits have not changed since then- even though they have. We don't spend the same amounts on food. We don't buy the same things (how are VCR sales doing these days? Still want your MTV?). Updating the CPI attempts to capture these changes. If you spend eleven percent of your budget typically on food, then an incease in the price of food will have an eleven percent impact on the overall inflation rate. We have seen new products (personal computers, cell phones, giant TVs- plasma or LCDs) come along. Over time the size of homes have gotten bigger- more rooms- and cars have gotten smaller but more complex. Maybe you went to the movies more and today you stay home and watch something from NetFlix. How do you capture what changed? Changing how the CPI is calculated is necessary if it is to reflect what people actually use their money for. If we spent more or less on a category we need to change the weighting it gets in the final figure- otherwise more distortions creep in.
Let me give an example of how that works. Say your budget was $100 and you spent $11 of that on food- which is roughly what most people today actually do spend. If the price of food doubles, your food costs go to $22 and it will take you $111 to maintain the same standard of living you had before. Let's assume that the prices of everything else stayed the same. Even though the price of food is now twice as much, the overall inflation you face was not 100% (which would have meant that you now need $200 to buy everything) but instead was 11%.
If we go back 50 years ago people spent 30% of their budget on food. Let's run our exercise again using that figure. You were spending $100 and $30 of that went to food. Doubling that means now it will cost you $130 to eat the same stuff and buy all the same other stuff you used to. In this case, your overall inflation impact was 30%. If we used the same weighting we gave it back then on today it would overstate the effect of food prices on the total inflation rate. It could just as easily understate the inflationary impact of other things in our basket as well.
Last edited by Zippyjuan; 03-26-2012 at 09:13 PM.
Bah. There's plenty of opportunity out there for creative, motivated people. There may be another Steve Jobs just getting started as we chat about this. I would recommend apprenticeship or vocational school for most people today. The world needs more people with real skills and fewer people with fluff degrees. Hell, degree inflation has made the Master's the new Bachelor's for all intents and purposes.
Dr Bernankes advice to an alcoholic = drink more!
He learnt that off his old man.
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