Monday, July 25, 2011

The Debt Ceiling: Why It's A Real Issue For The Indentured Educated Class

So . . . stock markets have opened in Asia, and, despite what you have been told - by those who have no sense of how markets operate and affect us - this debt ceiling issue could have huge ramifications for those of us who are part of the indentured educated class. Right now, as Reuters reports, stocks are falling in Asia and gold is at a record high. Hopes of avoiding default in the U.S. have all but faded across the globe, and that means bad things for debtors.

While I am not trained as an economist, I certainly have researched the relationship between student loan debt and how it is a part of the global stock market.

Things are grim, folks.

Stay tuned for updates on this breaking story, and other big things.


Greg Ness said...


You didn't mention why it is bad for the indentured class? If we consolidate our loans to a fixed rate, is there any risk in an interest rate jump by a point or two?

Cryn Johannsen said...

Hi, Big Meech, obviously those rates should not change. We all know that. But in this case . . . I don't want to sound alarmist, but it's such a monumental thing that is happening. Who knows? We'll just have to see. I wouldn't worry so much about the fixed rates.

One Who Survived said...

I'm kissing the sandy soil in my Australian garden as from a distance I watch America going down like the Titanic.

The thing for you student debt slaves to worry about in the inevitable case of America's default, will be the hyperinflation consequent to the default. Sorry to say there's absolutely no way to avert the US dollar's hyperinflation, regardless of default.

Dr. Funkenstein said...

Hyperinflation is a good thing for chronic debtors, not a bad thing.