It's not often that I get to combine two pet topics in a single post but here is story about "subprime" student loans. In short, they're not getting repaid. Would lenders have lent to such borrowers had the federal government not guaranteed the loans? Not likely. Now we have the worst of all worlds: students burdened perhaps for a lifetime with their student loan debts (that since 2005 aren't dischargeable in bankruptcy) and the federal government on the hook to the lenders. From the lender's point of view it's heads I win, tails you loose. For only some of my earlier posts you can check here and here.
From bad to maybe worse: more Detroit news. The decision on whether Detroit should file Chapter 9 bankruptcy or the state of Michigan should appoint a manager to supplant the city council will be made in three weeks per a Reuters account here. Earlier thoughts here and a teleconference I moderated on Chapter 9 here.
From bad to maybe worse: more Detroit news. The decision on whether Detroit should file Chapter 9 bankruptcy or the state of Michigan should appoint a manager to supplant the city council will be made in three weeks per a Reuters account here. Earlier thoughts here and a teleconference I moderated on Chapter 9 here.
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