Is real simple. The economic gloom is tangible and the market brushes it aside. Good morning, everyone. This is bloomberg surveillance. On bloomberg radio, on bloomberg television. The bid keeps coming in. It is not about being up. It is the quality of the up that is so important. Jonathan the last several months, rotation on, rotation off. It was rotation off since june or so. In the last several hours, rotation back on. That means the cyclical parts of the market do better, tech underperforms. The Treasury Curve steeper. Dollar in the mix as well. That is the thing a lot of people were trying to position behind. It didnt quite develop over the last month. It is back on this morning. Betterldman sachs with than good earnings. I have not gotten the appropriate up remotes the appropriate eyebrow, whats amowiczropriate abr briefing. Lisa theres an incredible dissonance between the pessimism we are hearing from the banking chiefs right now and the optimism you hear from a lot of fixed inc
Not talking the same sky loving christian debt were talking they did go on turning in income and then when they graduate theyre graduating move off what about 100000. 00 u. S. Dollars is a level of debt the average is 30000. 00 and in fact its non dischargeable prior to the what happened with the subprime crisis was people could do the jungle mail lock away students could never walk away from this almost all of it is essentially owed to the government so the government owns you anyway and you cant escape it you cant just jingle mail away from the u. S. Government 30000 is the starting level and i go i could graduate. Something of that scope a year so this starting with the debt to income ratio 100 percent before they even pay the rent a little on consider paying a mortgage max and i graduated before 1991 you all graduated around that sort of time the rate of increase since the 1980 s. A lot happened in the 1980 s. We could talk about. The rate of tuition increase has gone up 8 times fa
A huge weight of growth that simply cant be sustained indefinitely and thats whether by the students themselves coming on board well by the windows its a huge increase in the private debt load on the economy and its falling on the people who earn the least money and its setting them up for being able to participate in the rest of the economy life which is also driven by did so i think is one form of it is going to basically a. Student debt is going to make it impossible to keep boosting Household Debt so the Financial Sector is eating itself im so old i remember the 2008 financial crisis and if you recall the sub prime debt bubble up and we have this global meltdown the student debt is already bigger than the subprime debt bubble. That was about an on trillion dollars when you look at it went from 6 to non trillion between about 22000. 00 and fog so were not talking the same sky loving christian debt were talking they did go on turning in income and then when they graduate they grudge.
Welcome to front running 2020 with max kaiser and stacy are over at a bevy of special guests right here in fabulous hipster brooklyn im feeling it so stacy this episode is all about Student Deaths and the students of course are the millennium goals and generation z. They like the candidates promising to get rid of all the student debts theres 1. 00 trillion dollars in outstanding debt today in america that is up from 300 63000000000. 00 in just 2005 joining us to discuss this dr Michael Hudson professor steve kean and randy roller professor steve kean of course you talk a lot about debt and in fact increase the rate of increase of debt what do you think of that number 363000000000. 00 in outstanding Student Loans in 20051. 6 trillion today doubling every 2 years which is a huge right of growth that simply cant be sustained indefinitely and thats whether by the students themselves coming on board well by the windows its a huge increase in the private debt load on the economy and its fal
Owed to the government so that means that the government could wipe out all the student debt and it wouldnt hurt any creditor at all it could be wiped out without any disruption of the economy and in fact unless its wiped out the economy will be distorted because as steve cain just said if you have to pay a lot of money in student debt you cant afford to get a Bank Mortgage to buy a house of your own and theyre going to end up living with your parents you know awol dr Michael Hudson here according to moodys erasing student debt would be a small stimulus but would it create moral hazard moral however or has it but i wouldnt know what is the morrow if he had worked the moral hazard is if the rich families that can afford to send their kids to School Without an education would no longer be able to lord it over the families that are driven into poverty by student debt. The moral hazard is that there wouldnt be a polarizing economy between an oligarchy at the top and a democracy at the bott