The main takeaway here is them writing off loans. Everyone acting like he has a choice. They have to wipe the bad loans to save the rest of the banking industry. Commercial office loans are going belly up next.
Yeah, I don't get it.
These people would default on the loans anyways. This would create a domino effect, taking down the entire market. They can brush it off as loan forgiveness and get the political w. Make no mistake, they have to wipe the debt because default is nuclear.
If the government is 34 trillion in debt and the average Joe is 100k in debt and we just keep printing money and adding interest and raising taxes everything should just work out no problem. Now I get it
Defaulting on them won't change that they would still owe on them (Student loans) at least. Student loans cannot be cleared by bankruptcy.
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