About That Student Loan Forgiveness....

[LightRoasted]

For your consideration ...

this is why

I ate the Steak as Judge Judy says LOL - I continue to pay on my student loans despite realizing that it probably wasn't the best decision but I made the decision to do so based on the information I had at the time. After paying for 17 years it appears I have another 15 years to go. This is why I drive the same used cars (1994 and 2003) and have not had a car loan since paying off the SUV in 2002. I can't afford a car loan due to my student loan payments. I either pay for one or the other as I don't have enough money to do both. If I gave up the animal rescue I might be able to buy a newer car hmmm.

I would really love to understand the details of your student loan documents to figure out how it jumped the tracks. Though I know it not possible. Something is way off kilter there/here. Was it interest only payments for a while? Because it appears something got in the way of paying down the principle amount over those 17 years. And another 15 years to go?! WTF over? May we ask the monthly payment amount for this loan?

Also, do the loan statements indicate a "principal" amount due? An amount that has any interest charges absent? Just the "principle"?

 

[Bare-ya-cuda]

For your consideration ...



When one receives a hard money loan, sure. However, with banks, they aren't lending money. How can one lend something that one does not have in their possession to begin with? Creating money from nothing, counterfeiting money, is fraud. Loans from banks are fraud, since they do not lend money on hand, but create it by ledger entry, one does not need to feel guilty not to repay fraud.

Just because you take out a mortgage with you local branch and they don’t have 450k on hand does not mean the bank in whole doesn’t have the money. What do you think k happens with the money millions of Americans deposit into their bank? Those deposits add up and the bank loans it out and makes money on the interest from those loans. They aren’t creating money from nothing. Do you think your employer direct deposits ghost money into your account every payday?

Just from this thread alone I have come to understand why you are against paying back your student loans. You got ripped off.

 

[HemiHauler]

Just because you take out a mortgage with you local branch and they don’t have 450k on hand does not mean the bank in whole doesn’t have the money. What do you think k happens with the money millions of Americans deposit into their bank? Those deposits add up and the bank loans it out and makes money on the interest from those loans. They aren’t creating money from nothing. Do you think your employer direct deposits ghost money into your account every payday?

Just from this thread alone I have come to understand why you are against paying back your student loans. You got ripped off.

Fractional-reserve banking.

I’ll add basic banking to the long list of things about which you are clueless.

 

[LightRoasted]

For your consideration ...

Just because you take out a mortgage with you local branch and they don’t have 450k on hand does not mean the bank in whole doesn’t have the money. What do you think k happens with the money millions of Americans deposit into their bank? Those deposits add up and the bank loans it out and makes money on the interest from those loans. They aren’t creating money from nothing. Do you think your employer direct deposits ghost money into your account every payday?

Just from this thread alone I have come to understand why you are against paying back your student loans. You got ripped off.

For your information ...... By law, banks cannot lend their customer deposits. With fractional "reserve" banking, in the past, banks could "lend" "create" up to 10 times the amount of their total deposits. If they had $1,000,000 in total deposits, they could create $10,000,000 out of nothing to "lend". Today, that requirement is not in use, it's more like 100 to 1, or more. Without those customer deposits, banks could not lend/create, typically, more money via the loan process. That is why banks are always trying to get your business, they need/want more deposits to maintain their reserve ratios, as well as to make/create more loans.

Also, I do not have a student loan, never have.

Here is an explanation from the Bank of England on the creation of money. Their explanation applies to the Federal Reserve System as well.

How is money created?

Most of the money in the economy is created by banks when they provide loans.

www.bankofengland.co.uk

From a Harvard paper ....

"Banks lend by simultaneously creating a loan asset and a deposit liability on their balance sheet. That is why it is called credit "creation"--credit is created literally out of thin air (or with the stroke of a keyboard). The loan is not created out of reserves. And the loan is not created out of deposits: Loans create deposits, not the other way around. Then the deposits need a certain amount of reserves to be held against them, and the central bank supplies them (more on that below)."

 

[phreddyp]

For your consideration ...



For your information ...... By law, banks cannot lend their customer deposits. With fractional "reserve" banking, in the past, banks could "lend" "create" up to 10 times the amount of their total deposits. If they had $1,000,000 in total deposits, they could create $10,000,000 out of nothing to "lend". Today, that requirement is not in use, it's more like 100 to 1, or more. Without those customer deposits, banks could not lend/create, typically, more money via the loan process. That is why banks are always trying to get your business, they need/want more deposits to maintain their reserve ratios, as well as to make/create more loans.

Also, I do not have a student loan, never have.

Here is an explanation from the Bank of England on the creation of money. Their explanation applies to the Federal Reserve System as well.

How is money created?

Most of the money in the economy is created by banks when they provide loans.

www.bankofengland.co.uk

From a Harvard paper ....

"Banks lend by simultaneously creating a loan asset and a deposit liability on their balance sheet. That is why it is called credit "creation"--credit is created literally out of thin air (or with the stroke of a keyboard). The loan is not created out of reserves. And the loan is not created out of deposits: Loans create deposits, not the other way around. Then the deposits need a certain amount of reserves to be held against them, and the central bank supplies them (more on that below)."

Maybe you should let the FDIC in on your little secret about what banks do with customer deposits. www.fdic.gov<about>learn

 

[ontheriver]

this is why

I ate the Steak as Judge Judy says LOL - I continue to pay on my student loans despite realizing that it probably wasn't the best decision but I made the decision to do so based on the information I had at the time. After paying for 17 years it appears I have another 15 years to go. This is why I drive the same used cars (1994 and 2003) and have not had a car loan since paying off the SUV in 2002. I can't afford a car loan due to my student loan payments. I either pay for one or the other as I don't have enough money to do both. If I gave up the animal rescue I might be able to buy a newer car hmmm.

I understand.

This thread was about student loan forgiveness being proposed now

First: It was a play this administration made to get votes for the midterms
"they" knew it was unconstitutional and they did it anyway
"they" NEEDED the youth vote

Second: This administration doesn't care about you or anyone else that has been paying long term on their student loans

Third: I wasn't lucky enough to be blessed with the opportunity to afford college. I knew it.
So I got a job at 16 and kept working. Every. Single. Day.

After I worked a long time I was able to get a loan to make a start. I read every word in that contract. Then I read it again.
I knew full well that there would be no off time for me. I accepted the risk and made sure nothing would stop me from repaying every cent.

As I said everyone SHOULD do their due diligence.

I can now afford to pay for me.

With this economy it is absolutely ridiculous for this government to expect me to pay for anyone else.
Maybe if "they" stopped sending billions abroad we could talk about student loan forgiveness.

My 2 cents.

 

[Merlin99]

Just because you take out a mortgage with you local branch and they don’t have 450k on hand does not mean the bank in whole doesn’t have the money. What do you think k happens with the money millions of Americans deposit into their bank? Those deposits add up and the bank loans it out and makes money on the interest from those loans. They aren’t creating money from nothing. Do you think your employer direct deposits ghost money into your account every payday?

Just from this thread alone I have come to understand why you are against paying back your student loans. You got ripped off.

If you watch "It's a wonderful life" it explains this concept pretty well.

 

[ontheriver]

If you watch "It's a wonderful life" it explains this concept pretty well.

Thanks for the reference. I haven't watched that in a long time. You are right.

 

[ArkRescue]

For your consideration ...



I would really love to understand the details of your student loan documents to figure out how it jumped the tracks. Though I know it not possible. Something is way off kilter there/here. Was it interest only payments for a while? Because it appears something got in the way of paying down the principle amount over those 17 years. And another 15 years to go?! WTF over? May we ask the monthly payment amount for this loan?

Also, do the loan statements indicate a "principal" amount due? An amount that has any interest charges absent? Just the "principle"?

I will try to look at the details to make sense of it. It doesn't make ANY sense to me either that a 25 year loan has become a 32 year loan.

 

[LightRoasted]

For your consideration ...

If you watch "It's a wonderful life" it explains this concept pretty well.

It is not a true story. Though the story line gives some truth to how banking works, it adds artistic licence to the lies about it.

 

[LightRoasted]

For your consideration ...

Maybe you should let the FDIC in on your little secret about what banks do with customer deposits. www.fdic.gov<about>learn

So, if a bank goes under, customer deposits are insured? Everyone already knows that. And that's why the FDIC was created in the first place, to give people some sort of reassurance that their money would be safe. Even though when it was created, those that created it, already knew how the banking system worked, and that it is a fraud. They were in on it. Duh. Funny money insured with funny money.

Can't you do any better?

 

[phreddyp]

For your consideration ...



So, if a bank goes under, customer deposits are insured? Everyone already knows that. And that's why the FDIC was created in the first place, to give people some sort of reassurance that their money would be safe. Even though when it was created, those that created it, already knew how the banking system worked, and that it is a fraud. They were in on it. Duh. Funny money insured with funny money.

Can't you do any better?

You didn't check did You? Look and see you pompous ass!

 

[LightRoasted]

For your consideration ...

You didn't check did You? Look and see you pompous ass!

Exactly what did you want me to see? This?

"The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system. To accomplish this mission, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships."

If not, then what are you wanting me to acknowledge?

 

[phreddyp]

For your consideration ...



Exactly what did you want me to see? This?

"The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system. To accomplish this mission, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships."

If not, then what are you wanting me to acknowledge?

How banks loan out deposits, what did you think?

 

[LightRoasted]

For your consideration ...

How banks loan out deposits, what did you think?

I didn't see that. They have a huge amount of information on their site. Point it out. Show me.

 

[phreddyp]

For your consideration ...



I didn't see that. They have a huge amount of information on their site. Point it out. Show me.

You have told me time and time again not to try to educate you about finance. I am NOT here to educate YOU; I am here to point out your flaws and maybe stop someone from thinking that you have a clue about finance. You my friend are a hazard to someone's future wealth!

 

[HemiHauler]

You have told me time and time again not to try to educate you about finance. I am NOT here to educate YOU; I am here to point out your flaws and maybe stop someone from thinking that you have a clue about finance. You my friend are a hazard to someone's future wealth!

Just his own. And that’s fine by me.

 

[Bare-ya-cuda]

Just his own. And that’s fine by me.

He can always do what you have done…you know that thing you consider “smart”, file for bankruptcy to get out of paying debt you agreed to pay back.

 

[Monello]

Funds end up in my bank account via direct deposit. The bulk of my purchases today are with credit cards. Then I electronically transfer the amount of the CC balance each month. I do very little transacting with actual paper legal tender.

My dad worked in collections for the utility company. Back in the 1960s he was working in the vicinity of our neighborhood. He placed all the paper money he had collected so far that day on the dining room table. He counted it out and it was in excess of $28,000.00. Mostly in 1s & 5s. As a small child that seemed like all the money in the world. A few were business accounts. But mostly residential customers that were behind a few months. In order to not have their lights disconnected on the spot, they had to make a good faith effort to pay. Maybe not the entire amount but at least 1/4th of it. He was effective because after being told they owe money, a lot of folks told him they were broke and didn't have any available cash. Then he'd climb up the pole and disconnect the power. Magically the customer would appear at the base of the pole with cash in hand. We have come a long way in 70 years from almost eliminating paper money from the daily economy.

So in a sense, my banking is just shifting numbers around between accounts and various financial obligations. You could argue that my money doesn't exist in physical form, it's just numbers attached to an account.

 

[LightRoasted]

For your consideration ...

You have told me time and time again not to try to educate you about finance. I am NOT here to educate YOU; I am here to point out your flaws and maybe stop someone from thinking that you have a clue about finance. You my friend are a hazard to someone's future wealth!

Huh? Never have I admonished you trying, "time and time again not to try to educate", me about finance. What a joke. You say the FDIC says customer deposits are used by banks to make loans? I say show me. Since you can't, or won't, proves I am correct. I win.