Quote:
Originally Posted by Saratoga_Mike
The next bailout will be student loans, imo, not credit card debt. Currently, Sen. Durbin is proposing a bankruptcy reform bill that will make it much, much easier to discharge student loan debt in the bankruptcy process (nearly impossible now). I'm opposed to this b/c guess who picks up the tab when student loan debt is written off? The taxpayer.
On credit card debt, why should it be eliminated? It would leave a gapping hole in the capital cushion at banks. So what, you might say? That would curb lending and slow the economy. No free lunch. Otherwise, the Chinese who have major debt issues at the local and business level, would just write-off all their debt.
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My thinking is the vast majority of people will not need to borrow with the burden erased. and with CC harder to get and with limits, it could last. Banks have been preditating on people for years with ursurous interest rates. the purpose of banks originally was to serve people, and the need to get back to that.
A healthy sustainable economy needs to have responsible parties fueling it.
I'm no economist, but it seems to me the system is rigged to keep people spending more and more that they cannot afford to do, like the housing crisis a few years ago.
