$$$ the economy thread $$$

[gymratter]

some ways to save a little $$$

 

[Donalex]

I worked in banking through 9/11, the housing crisis, and up to the market/crypto boom.

The main reason for repos were job-related, not LTV. LTV had a small determination on the amount of losses because almost all repos were in the 20-24 mo loan payback schedule.

Increased new car availability/sales will increase the used car units.

 

[trackratZ]

This is not the way, I saved $$ throughout college to pay for it, it's the discipline and hard work. This otoh is a handout.

 

[takemorepills]

This is not the way, I saved $$ throughout college to pay for it, it's the discipline and hard work. This otoh is a handout.

Many have mentioned, this will just embolden colleges and universities to further increase their prices. Tuition has increased far faster than inflation for nearly 40 years now.

https://www.visualcapitalist.com/rising-cost-of-college-in-u-s/

 

[ec15]

Many have mentioned, this will just embolden colleges and universities to further increase their prices. Tuition has increased far faster than inflation for nearly 40 years now.

https://www.visualcapitalist.com/rising-cost-of-college-in-u-s/

This generation do not think that far ahead. It's the lazy "Me Me Me" or "trophy" generation.
They do not believe that nothing is free. What is free now comes back as an added cost.
ie: Food delivery apps and restaurant prices.

 

[NecioVato]

Part of the problem is that the education bailout doesn’t target the actual issue but the symptom. I mean we can all admit colleges have shot through the roof in costs over the past 10yrs. What kids have to pay for school now vs what we paid - big difference. Doesn’t make it right that there is a bailout but at the same time - I wonder if they actually allowed for kids to include bankruptcy as part of school loans, maybe the idea of ‘everyone gets to go to school’ isn’t the best idea. To me - if I had kids - I would definitely be pushing them to get an education that allows for you to pay back your loans or to take care of yourself - the idea of going to school and getting into $100k worth of debt to then get a job that pays so little - it just doesn’t make sense to me.
Regardless - i don’t see how this helps with the inflation issue but whatever. [

 

[Donalex]

The idea is to spur spending by those who have this debt. A billion here and a billion there. Pretty soon, you're talking about real money.

Better them than the huge corporations who used the handouts a couple of years ago for stock buybacks instead of providing living wages or job creation.
https://time.com/5845116/coronavirus-bailout-rich-richer/

Almost 6% of the PPP money from the 2021 loan program was fraudulent.

 

[MHockey17]

This is not the way, I saved $$ throughout college to pay for it, it's the discipline and hard work. This otoh is a handout.

Student loan forgiveness is a bandaid to the real issue that is the enormous cost of tuition & education; It’s essentially just shifting the financial burden to a different economical arena.

And while it’s tempting to pluck the low hanging fruit that is “this generation doesn’t have work ethic”, I think it’s a bit disingenuous. I know there’s plenty of younger folk who expect handouts, but that doesn’t characterize the entire generation. There’s many who have goals & dreams and work hard to achieve them, however the world of today is not the same as the world of yesterday. It’s really just not feasible for a full-time student to work the amount hours that would be required to cover both living & education expenses, whilst also focusing on studies n maintaining good mental health.

So I wonder what the solution is then?

 

[West Aussie]

Student loan forgiveness is a bandaid to the real issue that is the enormous cost of tuition & education; It’s essentially just shifting the financial burden to a different economical arena.

And while it’s tempting to pluck the low hanging fruit that is “this generation doesn’t have work ethic”, I think it’s a bit disingenuous. I know there’s plenty of younger folk who expect handouts, but that doesn’t characterize the entire generation. There’s many who have goals & dreams and work hard to achieve them, however the world of today is not the same as the world of yesterday. It’s really just not feasible for a full-time student to work the amount hours that would be required to cover both living & education expenses, whilst also focusing on studies n maintaining good mental health.

So I wonder what the solution is then?

The solution is Australia’s model ( even though even that is under attack now)
Anyone can go to university if they have the grades. They do not have to pay for their course upfront, heck they don’t even have to pay for books, pens, computer upfront.
Thier tuition goes onto a government funded loan called HECS and items used for the duration of the study go onto a HELP government funded loan…both are interest free.

A student only begins to pay the loan back once they start earning above 47k and the more they earn the more they are taxed. For instance the lowest amount 47k would be taxed around 2% which equates to around $9 a week. When they earn 55k they get taxed about 4% or around $11 a week and so on and so forth. You never really miss it, because it’s taken from the time you earn money, and once it’s payed off you get your full pay back and it feels like a bit of a bonus.
There are issues with the system…lifelong students for one, and a small amount who never get a job. But on the whole it works, in this way anyone who wants to go to uni no matter how poor they are can, and the government recovers most of their money

 

[Donalex]

What this country needs is a robust non-profit and accredited trade school infrastructure geared to job type availability. One-two years, get a skilled job.

And, advertising and tuition assistance at a lower level will help fill the seats.

 

[morgand]

It sure is an interesting time, particularly in any retail goods impacted by supply constraints. This inefficient market will correct at some point, and yes people will have paid overs. Historically most see their car as a depreciating asset, so won't be a big surprise and people will just live with it. What it might mean is that people hang onto their vehicles a bit longer, as trades won't be as appealing.

I think something that is not getting talked about is the increase in finance based on future values, that are underwritten by OEM's. There is likely to be a fairly complex model based on gross per new unit, versus future value liability, versus market share defensive strategies, however you can see a lever available to OEM's for some flagship vehicles is supply.

 

[NecioVato]

Student loan forgiveness is a bandaid to the real issue that is the enormous cost of tuition & education; It’s essentially just shifting the financial burden to a different economical arena.

And while it’s tempting to pluck the low hanging fruit that is “this generation doesn’t have work ethic”, I think it’s a bit disingenuous. I know there’s plenty of younger folk who expect handouts, but that doesn’t characterize the entire generation. There’s many who have goals & dreams and work hard to achieve them, however the world of today is not the same as the world of yesterday. It’s really just not feasible for a full-time student to work the amount hours that would be required to cover both living & education expenses, whilst also focusing on studies n maintaining good mental health.

So I wonder what the solution is then?

I think most people feel that the youth ISN'T lazy but something the older generation pins on them when compared to how difficult/hard their generation had it. For instance - I'm a Gen-X who remembers when we were all called slackers and what not - bc of how difficult the previous generation had it compared to us. It's just what happens - regardless of whether or not its fair or not. As for the education bailout - the 2 concerns that I believe a lot of people have is:
1. Is this the ONLY TIME this will happen - or will this become a norm - a way to garner votes for the politicians and to hell with the future (not like we aren't doing this already)
2. And you mentioned this as well - this doesn't tackle the real issue - if the govt is willing to give 'free' education or subsidize it - what prevents colleges from raising costs.

In the end - like @Donalex mentioned - we need to look to promote careers within the technical and blue collar industries where one can make a lot more money than getting into $100k's of debt to get into a career field where it will be next to impossible to pay it back. In the end - so many American's are carrying so much debt - whether it be with school loans, car loans, home mortgages etc. And with the inflation of things - it just compounds everything.

 

[takemorepills]

Our economy is a mess.

Most things are made outside of USA, that reduces the amount of good careers available.

Now we have Starbucks employees unionizing. Starbucks shouldn't be what we Americans consider as a "career" and "living wage". It's perverse to see how Unions are like a virus, all the real jobs are gone but the Unions somehow stuck around.

$10k/20k is not enough to fix anything.

It's also another manifestation of elitism, we're going to bail out college debt? Why not bail out everyone else? People with college debt are more deserving?
What about the guy who started up his own towing company and had to get loans for trucks? Doesn't that person deserve some help too?

Oh hey, Ukraine needs some money too.....

That's ok, we have the best printers in the world.

 

[MHockey17]

The solution is Australia’s model ( even though even that is under attack now)
Anyone can go to university if they have the grades. They do not have to pay for their course upfront, heck they don’t even have to pay for books, pens, computer upfront.
Thier tuition goes onto a government funded loan called HECS and items used for the duration of the study go onto a HELP government funded loan…both are interest free.

A student only begins to pay the loan back once they start earning above 47k and the more they earn the more they are taxed. For instance the lowest amount 47k would be taxed around 2% which equates to around $9 a week. When they earn 55k they get taxed about 4% or around $11 a week and so on and so forth. You never really miss it, because it’s taken from the time you earn money, and once it’s payed off you get your full pay back and it feels like a bit of a bonus.
There are issues with the system…lifelong students for one, and a small amount who never get a job. But on the whole it works, in this way anyone who wants to go to uni no matter how poor they are can, and the government recovers most of their money

I’ve always though that could be a good system too, not necessarily “free tuition” but one where the government provides funding for degree programs (particularly for those that are necessary and in demand) and then establishes a reasonable repayment schedule based on the earning potential of the field.

Of course there’s still the matter of reeling in education costs; public institutions could be better funded to lower upfront cost of attendance, which would hopefully force private schools to follow suit.

In the end - like @Donalex mentioned - we need to look to promote careers within the technical and blue collar industries where one can make a lot more money than getting into $100k's of debt to get into a career field where it will be next to impossible to pay it back. In the end - so many American's are carrying so much debt - whether it be with school loans, car loans, home mortgages etc. And with the inflation of things - it just compounds everything.

I’d agree we should promote the technical professions as well, though I think more importantly we as a country should be funding and pushing professions that are currently in demand and necessary, whether that’s trades or graduate careers. There seems to be a lot of shortages in STEM, medical, n tech fields.

 

[NecioVato]

I’d agree we should promote the technical professions as well, though I think more importantly we as a country should be funding and pushing professions that are currently in demand and necessary, whether that’s trades or graduate careers. There seems to be a lot of shortages in STEM, medical, n tech fields.

I couldn't agree more - I think we are falling way behind our competitors when it comes to all things math and science. I would love to see the govt look to offer 'free' education for those fields to try to promote it more within this country but......eh...it is what it is.