Recovery threatened by runaway student loan debt

[hunter]

38. The end of the "Reagan Revolution" begins here.

Millions of unemployed people with debts they can't discharge through bankruptcy is a recipe for social unrest.

Walking away from an upside down home mortgage is not the same thing, the bank gets the house. But nobody can walk away from student loans, the bank can't take back the education and sell it to somebody else, and they can't sell the person as a serf or a slave, although sometimes you have to wonder if that's not what the ruling classes want...

We're going to be seeing a rapid expansion of shadow economies within the U.S.A. and increasing protests of the sort we're now seeing in Greece or Spain.

The only thing that will pull us out of this fire is an FDR style New Deal Works Project Administration and a big "haircut" for holders of student loan debt.

Whoever drops the ball on this issue (and it could very well be Obama...) will be remembered as the the next Herbert Hoover.