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   𝐿𝒶𝓃𝒶 "not yet begun to fight" (lana@beige.party)'s status on Tuesday, 30-Apr-2024 20:21:22 JST 𝐿𝒶𝓃𝒶 "not yet begun to fight"

   Let me explain this real slow.

   1. I borrow $100 from you today.
   2. I pay you $10 every day for a year.
   3. I have paid you back $3,650
   4. I still owe you $90 somehow.
   5. You then "forgive" the $90 debt.

   In this scenario, absolutely nobody is paying anybody $90. Nobody is being stiffed $90. Nobody is being forced to pay someone else's $90 debt. Absolutely nobody is "getting a $90 handout for free".

   What's happening is you have been paid back your original $100 and then profited a mere $3,550 on top of that and we're saying that's enough profit.

   This post is about student loan forgiveness.

   • Embed this notice
     lainy (lain@lain.com)'s status on Tuesday, 30-Apr-2024 23:37:30 JST lainy

     in reply to

     • Bill St. Clair
     @billstclair @Lana i mean, the students took on a loan at 3600% interest, so that's pretty bad.
     Pleroma-tan likes this.
   • Embed this notice
     Bill St. Clair (billstclair@impeccable.social)'s status on Tuesday, 30-Apr-2024 23:37:31 JST Bill St. Clair

     in reply to

     @Lana Not how loans work. You get money. You agree to pay an amount every month for however many years. The total paid never enters into discussion. You already agreed to pay. That agreement may have been utter stupidity on your part, but you agreed. Now you pay. End of story.

     Pleroma-tan repeated this.
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     feld (feld@bikeshed.party)'s status on Wednesday, 01-May-2024 01:14:46 JST feld

     in reply to

     • lainy
     • Bill St. Clair
     @lain @Lana @billstclair it's a pretty extreme analogy as this scenario rarely happens where your interest was so high that you've paid back the full "loan" value but only through the interest portion, meanwhile you have a ton of interest left and the full principal remaining.
     
     I've heard of a few instances where this has happened with student loans and car loans but it's not THAT common. (plz kill all payday loan businesses, just straight up burn them all to the ground)
     
     It's not like the unpaid portion of the loan is just "future extra free special income for the loan servicer" -- it's money on their balance sheets and wiping that off can have severe consequences. Your unpaid loan balance is technically an asset they are holding which they can leverage, trade, and sell, right? There's a huge industry around this with mortgages. That's literally what caused the 2008 crash -- they were lying about the quality of the mortgages sitting on balance sheets and bundling and trading and gambling with them. Mortgages are meant to be super high quality because nobody wants to be homeless so they'll steal, sell drugs, and prostitute themselves out to pay their monthly mortgage before risking being homeless. (pretty evil but that's basically how bankers look at it)
     
     So the end result of a massive "loan/debt forgiveness" plan in the case of private lenders (Note: not the Federal Gov which can just move the money on their balance sheets and it just adds to the national debt) could destabilize the economy. I mean sure, hate the banks and Wall Street and whatever but when the domino effect of this causes the entire system to fall apart we're in a much worse place than we are today.
     
     That being said, if you hate the white collar class that much that you're willing to destroy the economy for being so evil and predatory against the working class -- consequences be damned -- I tip my hat to you, as I wouldn't mind seeing the economy go through a Great Reset either and have these vultures and money printers flushed out and thrown off the tops of buildings :tipshat:
     lainy likes this.