The economy on paper is quite good, but everyone thinks it is bad.
Regardless of what Krugman says and what the reported numbers look like on paper, the actual bad news is coming as car loan defaults and late pays are up exponentially despite the “good” economic numbers. Student loans and credit cards are not far behind.
TFS knows this and they are doing what insurers in Florida and California are doing - hedging their bets now.
Student loans will have pretty delayed effect as lots of people wont have to recertify income for 7 months + and so will make 0 to minuscule payments in the interim. Also with the changes to SAVE vs REPAYE the minimum monthly payments are significantly less for low earners.
Exactly!
And honestly the tightening of credit is what this country needs. If you’re under $100k annually your effectively low-tier middle income at best when you couple inflation. Cheap money is drying up and these people need to rethink their debt-to-income.
You mentioned in a thread awhile back how you think the higher rates are better for our economy and back to what they need to be. Well, this is all part of that strategy.
Mixed bag on what has been happening, but delayed or not, the student loan tsunami is coming. It will only speed up if the GOP legislation to shut down Biden’s SAVE plan is passed or if that plan doesn’t pass muster with SCOTUS like the last one.
Either way, if you took on the obligation you need to make good on that obligation.
Lol the average household income in the USA is $88k per year and you’re saying $100k is low tier. Over half the country is low. I guess anything below the top 1% feels kind of low in this timeline.
They should have always been higher is prob what I said. Drastically raising rates quickly usually has a back effect as people got so used to cheap money, and based their lives/businesses on constant zirp or near zirp. If they were in a steady range, say 4-6% we wouldn’t be having most of these issues now.
lol yeah ok. i’m sure all those people with forgiven PPP loans would like to have a word with you.
#stillnotbanned?
This - PPP plus other programs - all Quasi-forgivable
People harp on the $2k payments on CNBC - what about the huge forgivable bucks that went to “small/midsize businesses”
Most went straight to the pocket - if the program required audited financial statements diff story
What about them? Did anyone on LH say PPP loans shouldn’t be paid back despite any misguided “forgiveness” nonsense?
PPP was always under the expectation of forgiveness. And regardless of business size it kept many from failing. EIDL loans too.
Almost all PPP was forgiven
People are applying the same logic to any loan lol
Go fully capitalist - the problem is most people don’t understand working for a city, state, union, feds is socialism
I don’t think people understand how much the government has bankrolled life for both sides
Fully capitalist is a totally different beast - The USA is only capitalist if you choose to live in that manner
PPP was an abysmal failure in design and execution. It wasn’t “under the expectation of forgiveness” on a widespread expectation really until it was realized that the Trump Administration had totally screwed it up and that concept was used for cover.
The planning, rollout, cost per “saved job” and recoupment was all marred by a lack of foresight and design. While the PPP did “save” some businesses and jobs, there were far more effective ways to address the economic downturn than was used by the Trump Administration.
None of this is news.
Not locking everything down to begin with would have been a good start. The current regime seems poised to repeat the same mistake. 
That also would have helped, but people didn’t take SARS/CV19 seriously enough + soon enough (via masking and legit social distancing/crowd control) and that led to some other bad decisions down the road from there.
I’m talking more protect the vulnerable (seniors) while still letting other aspects of society and business function normally. The path that was taken was akin to amputating a leg over a fresh splinter on your toe.
Control by fear was the name of the game and it was used and abused to destroy middle class wealth and distribute it to the richest 1% while getting the poors to accept crumbs after the dog got the scraps.
The whole thing still stinks to high heaven.
Rates have always fluctuated, it’s a tool of the Fed. The problem is that we had a run from 2009 to 2022 of basically free money. So everyone forgot what happens when you have a rate of 5%. All of a sudden someone making $100k can’t find a way into a $60k truck (unless they get a great deal leasing through you). Vehicles wouldn’t cost what they do today if rates had been over 5% at any point in the past decade.
Hindsight is 20/20. But even in Sweden where they avoided lockdowns their was substantial government spending on Covid relief.
There’s a difference between relief and robbery.
PPP was a failure.
Depends on which POV lol