Socialist Sanders in a nutshell:
Everything should be free, given to you by the Gov’t.
And let’s destroy all the big businesses who pay the taxes to pay for all your free stuff.
Because: Fairness!
Via BizPac Review:
It’s incredible to think that a man who knows so little about economics could potentially be the leader of the free world….
Apparently Sanders doesn’t understand that a tangible product has actual value therefore it can be taken back by the lender and re-sold….
You have families out there paying 6, 8, 10 percent on student debt but you can refinance your homes at 3 percent. What sense is that?
— Bernie Sanders (@SenSanders) December 26, 2015
Most economically illiterate tweet ever? https://t.co/J41XM66i9A
— Bill Kristol (@BillKristol) December 26, 2015
@SenSanders if you fail to pay off your mortgage the bank gets your property,a student loan?the gov gets nothing.
— antonnewcombe (@antonnewcombe) December 26, 2015
Hello, my name is #Bernie and although I have no clue how collateral works, I am running for president. Weeeee! https://t.co/UwvISPidpk
— Casey Kim (@caseykim12) December 26, 2015
Democrat Presidential candidate gets millions of dollars from favor seekers while I get 0% on my bank savings account. What sense is that?
FWIW, Bernie is correct under a scenario where the bank is making a 100% loan on bubble-inflated property. That’s a fair part of how we got into the big crash, when the bubble burst and all the loans went underwater so the collateral wasn’t there. Of course, those 100% loans were driven by bonehead gov’t policies in the first place, and never would have been granted by institutions governed by sound financial principles.
While it is true that student loans are unsecured debt, the future salaries of those students can and will be lower because that debt must be paid. Nothing is really free; cost is either paid by the borrower or shifted to the taxpayer. In either case, those students will be paying, either directly or though higher taxes down the line.
I’d be curious to know the actual composite ROI (“return on investment”) on both real estate and college loans. It’s the bottom line that tells you what the interest rate really needs to be, not the blathering politicians or people who post comments on the web. Reality is the ultimate Earthly arbiter.