Federal Reserve, Jordan Goodman, America discussed on Jim Bohannon
Four six two six Jordan Goodman, America's money answers. Man. Our guest, we've got Frank in Cumberland, Maryland to weigh in this evening. Hello, frank. Welcome. How long can the US continue to borrow a trillion dollars a year? And how dangerous is a student loan at automobile loan debt. Well, we can keep barring as long as people Leme to us. And there seemed to be willing to do that were the safest place around the world. People are fleeing particularly emerging markets Turkey, South Africa. Brazil argentina. So they're putting their money here. So we can keep going for quite a while. Gyms asked me this question before what's the breaking point the number? I'm putting out his thirty trillion worried about twenty two trillion right now as far as student loan debt. We talked about that a little bit. We're currently at one point five trillion in student loan debt already the delinquency and default rate is about twenty percent, and it's going to be going higher because people just can't handle this amount of debt. But it doesn't go away in bankruptcy. The only two deaths that don't go into bankruptcy, your student loan debt and Irish debt. So it hangs over people, even if they declare bankruptcy. When you I guess, I'm missing something here, would you declare bankruptcy you enter into all kinds of protection is are the laws regarding student loan debt written in such a way that it is specifically exempted from bankruptcy law protection. Yes. In the in the Bank of state law changed in two thousand five student loan debt was made non discharge in bankruptcy. That's correct specifically otherwise no lender. Whatever limp because everybody would default on the student loans. So yeah, I guess. Yeah. I can't very will repossess somebody's brain. I guess. Yeah. Barth calls in from Dolton, Alabama, the Jim Bohannon show. Good evening. Good evening in the dark tonight seven in my car. Well, I'm glad you're you're listening to the radio and stay tuned to this station to get you through all of this communication is my phone and then my car. Well, good luck to you, sir. And hang right in there. I had a question wondering if he had heard of the book the killing of us, focus Sam. By roddy? Howard Brown the killing of uncle William that that has to do with finance. Does it? Yes, sir. It has to do with when. Have a Federal Reserve was formed the hell. The dominant industry in South Africa. The the Cecil Rhodes that has the Rhode scholarship deal with Harvard and all that. Yeah. How hell they gain control of the the money system of the world. There's a money system of the world actually that you can get control of. Conspiratorial. But I mean, the Federal Reserve is four hundred nineteen thirteen after the crash of nineteen o seven nine hundred ninety eight. We're basically J P Morgan save the economy from going over the cliff. They said, well, that's not a good idea to have one guy us. So let's have a central banks. Do it. It was formed on Jekyll island in Georgia. And there was a whole bunch of conspiracy theories about what happened there. But I think it's been good to have a Federal Reserve instead of not having one. Labor this way. If there were no Federal Reserve wouldn't there have to be some institution that does what the fed does. We went longtime without a Federal Reserve. I mean until nineteen thirteen then how did how how we're things like interest rates and the like determined just free market supply. That wasn't a Bank can tilting the field one way or the other. I mean, the treasury was there, but there was no central Bank at that time. And so you had huge surges in the economy and big plunges like an eighteen seventy three. There was a major. Calamity depression, basically. So there was no kind of a thermostat. I guess you might say on the economy, and that's it crashed in nineteen zero seven hundred ninety eight and the whole banking system is about to go in JP Morgan literally stepped up and said, I'm going to save it. So that's when I said, maybe we should do it. Another way. Do we have any statistics on just what percentage of of student loan debt is never paid back? Well, the default rates about twenty percent something like that. So it doesn't get paid back. But it's hangs out there. It doesn't disappear like credit card debt if that's written off that pretty much disappears. But student loan debt, just kinda hang one point seven one point five trillion is all the accumulated debt that has not been paid off of which roughly twenty percent is not being paid on right now. It's either delinquent or in default. What what penalty do you pay? If in fact, do you just flat say, I don't know. So Sumi, I mean, I'm not sure what these people say interest rates, go up. There's. Penalties. They'll garnish your paycheck. They'll take your IRS refund. They they're very aggressive collecting, I'm a student loan debt. They don't just let it go. So penalties interest that just really piled up and puts people deeper, and I hear this from people all the time. Jim I say, you know, I started paying and I didn't pay enough, and I eat a more and more and more every year, even the my education was twenty years ago. It was just pretty pathetic for a lot of people. Stop and think about it. You know, college education is is a lot of things to to a lot of people. But from a societal point of view that the reason for a college education is to be productive citizens. If in fact, you're borrowing let's say at a six figures of Dennis in order to learn something that they're not gonna pay you money for as I like to say the program. It makes you the most articulate barista at Starbucks. Yup. The society has no vested interest in paying for that. I mean, financial aid should be based in large part on the percentage of people in a given major who within twelve months of graduation are actually. Working in that field of work. Statistics on that. Jim this twenty seven percents of the people who graduate end up using something it related to their major twenty-seven percent meeting. Seventy five percent or know three quarters. Do not end up working in in their major fields in one way or the other which gates that you essentially from the financial point of view. You've you've wasted your time you've acquired. I mean, it's one thing if you have a hobby. Yeah, I'd say that. Trusted literature. I always say, you know. Well, okay. So I'm interested in that. Well, that's fine. But, but, but you shouldn't be paying out this kind of enormous money to finance a hobby and also noted before that's why we have somebody bowling leagues in this country people like to bowl, and there are just simply an awful lot more people who liked to bowl the people who can make a living in the professional bowling tour. Exactly. And so I mean, I it just it amazes me at all these people who want to find myself or I want to do this or that will wanted you do that in your spare time and in the meantime, get a job. Yeah. Well, I mean, luckily, we have a good employment situation right now. And and there's a tremendous shortage of workers except the people coming out of college. In many cases, are not qualified or willing frankly to do the jobs that are available. There's something called the jolts report, which is the job openings long-term survey, and the latest number was six point nine million jobs are unfilled employers cannot find the people. To do tool and die making or plumbing electricity or climbing electric utility poles. There may be the people coming out of college. Don't either have the skills or the interest in doing the jobs that are actually available in the real world, which raises another point. I it's too easy to sit on your butt in this society. There ought to be economic pressures on people like if you have student loans, you are under economic pressure to do something a lot of people take jobs that don't like, but they've got service those Jim no that's over fifty percent of the people graduating today, go back and live at home because they can't service the student loan debt and having apartment in the car and kind of get on with their lives. I mean, it's pretty pathetic. If you wind up doing doing a job, you're not particularly fond of because it pays the bills. This was I think called growing up. We'll be back with more from Jordan Goodman, America's money answers man in just a moment..