Skip to main content

View Diary: Wall Street is Doing it Again: The Looting of America Continues (128 comments)

Comment Preferences

  •  I'm curious about the student loans (5+ / 0-)

    Back when the banksters were securitizing credit card and mortgage debts by converting them into CDO's, they were ALSO doing the same thing with student loans. Unlike mortgages and credit cards, however, which tend to go bad very quickly, student loans aren't even due for years after they are made, so all the defaults come much later. About 5-6 years after they are made.  So for the loans that were securitized in 2007-2008, that would be right around . . .  now.

    If the banks were smart, they learned their lesson from last time, and have moved to de-emphasize student loan debts in their securitized packages. So the coming student loan default tsunami won't hurt them as deeply as the mortgage crash did.

    But I rarely expect banks to be smart . . . . .

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site