reply on: A Couple of Articles About the Fed \ stacker news ~econ

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289 sats \ 5 replies \ @grayruby 4 Jan \ on: A Couple of Articles About the Fed econ

There is nothing as permanent as a temporary fed intervention.

100 sats \ 4 replies \ @Undisciplined OP 4 Jan

I'm wondering how much they're going to freak out when the inflation turns out to have been transitory after all.

What stupid set of toxic assets will they buy this time? Maybe the Fed will buy up all the unpaid student loans.

289 sats \ 3 replies \ @grayruby 4 Jan

Transitory until they pump another x trillion into the system.

At some point the student loan folks will realize if they all don't pay bailout is the only option.

100 sats \ 2 replies \ @Undisciplined OP 4 Jan

There's an interesting prediction that the government will forgive all those student loans as a means of increasing tax revenue. The idea is that the government will treat the forgiveness as taxable income, which will let them at least get some of it back.

289 sats \ 1 reply \ @grayruby 4 Jan

Hadn't heard that and don't know how it would functionally work. If people can't pay their student loans hard to imagine they have the money for a large lump sum tax payment. Maybe if the taxable income is added over a 10 year span.

0 sats \ 0 replies \ @Undisciplined OP 4 Jan

If there are people who could make their loan payments but are choosing not to, this would work on them, because you can go to jail for not paying taxes.

For people who really can't make a payment, this would reduce the government entitlements they qualify for.