QUESTION:
Dear Mr. Armstrong,
Since watching ‘The Forecaster’ I read your blog daily: thank you for all you have done to make sense out of the current phase of the economic cycle we are in. Some call it the fourth turning or winter and it helps to see the bigger picture.
About the loans: how do we go about reversing this “…standard consumer fraud since Hillary is the one who supported the bankers in making student loans non-dischargeable in bankruptcy.” How do we undo this new ruling? Will we have to wait until the economy stops functioning, or is there a legal process to undo it.
Respectfully,
Laura
ANSWER: Excluding student loans from bankruptcy was the Clintons’ gift to the bankers. It was very detrimental for it encourages education to expand prices dramatically without any practical check and balance. So it made education far worse.
The end-result will be a default, but it is unlikely that politicians will rise up in favor of students. The bankers pay for their elections, so do not count on government “for or by the people.” That does not exist.
History says this will end very badly. We will see a rise in civil unrest and this can be the seed to a major political revolution down the road. The bankers converted student loans into a debtor’s prison, which was outlawed because it was so abusive. There is no reasonable way out of this mess because the bankers bought Washington, and if Clinton were to get in — forget it. She will NEVER admit that they did anything wrong.
