Posts Tagged ‘credit card’

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Back in the 1970’s, some Wall Street wizard of scam figured out that investment firms could buy credit card debt, issue bonds backed by the debt, and sell the bonds to rich investors. So that’s what Wall Street did. Part of your credit debt each month goes toward paying the rich investor, and that’s also true for your late payment fees.

Before then, getting a credit card was difficult, especially if you were a member of the 99 percent. When Wall Street investment firms began buying the debt, credit cards became available to just about anybody that wanted one. My four year old kid was offered a pre-approved credit card in 1996, as was Fluff the Cat in 1998. True story.

A few years later after the credit card scam was created, the Wall Street boys figured out that they could do the same thing with student loans. At the behest of investment firms, such as Goldman Sachs, the government under President Ronald Reagan dramatically decreased the funds for grants and increased the funds available for student loans. Wall Street won, the 1 percent won, you and your kids lost. Wall Street and their politicians herded us and our kids into student loans like cowboys herd cattle into a pend to get them ready to be sent off to the slaughterhouse.

Nowadays, your student loan payments are divvied up between those who service the loans and the investors who own the bonds. In other words, Wall Street and their political hacks used government to engineer a massive scam to redistribute income from the 99 to the 1 percent. For tens of thousands, perhaps even millions, of US citizens, student loan debt has kept them in financial servitude to the 1 percent for decades and decades.

Today, total student loan debt is greater than total credit card debt. And you can’t go bankrupt on it because that’s the way Wall Street wanted it. Student loan delinquencies are also greater than credit card delinquencies.

Click below for the true story of somebody who is giving up on paying her $186,000 worth of student loans.

http://finance.yahoo.com/news/true-confession-ive-completely-given-193302452.html (more…)

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