Business

Student Loan Debt Problem Solved

via Soren K. Group and Marketslant.com

College ain't what it used to be. And student loans are paving the way to indentured servitude possibly for the next generation.

In one admittedly cynical scenario we see in the future a  large number of college graduates unable to repay student loans. We also see a government unable to disclose that default to thepublic and risk its own credit rating being downgraded. 

Student Loan Breakdown in 2017
?picture courtesy of Forbes 

This morning the House Financial Services Committee is holding a hearing that will evaluate how Federal Reserve policies are adversely affecting households, small businesses, savers, and retirees, and consider policy opportunities that the Federal Reserve could implement to improve economic opportunities for all.

The panel will include the following witnesses:

After modest bounces in existing and new home sales (despite weakness in starts and permits and mortgage application declines), pending home sales in May tumbled 0.8% MoM and were revised even lower (-1.7%) in April. This dismal print was below all economists' expectations, missing by 4 standard deviations.  

This is the 3rd straight monthly drop and 2nd straight annual decline in pending home sales.

Authored by Steve Keen via Forbes.com,

Janet Yellen has been reported by Reuters as saying in London yesterday that “she does not believe that there will be a run on the banking system at least as long as she lives”:

It's deja vu all over again in Sintra.

Yesterday, Draghi sent EUR and Bund yields surging on his 'hawkish' comments, which he was forced to talk back just over an hour ago, and today the confusion is back and it is the UK's turn as Bank of England governor Carney just hinted that the removal of stimulus is likely to become necessary, reversing on his own dovish stance unveiled just last week.

The section in question is the following (his full speech is here)):