February 27

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How screwed the current economic situation is

My buddy Michael Knight has an excellent article up about Ponzi schemes in America.

He highlights the following:

1. Higher Education System

The total student loan debt in the nation has crossed the 1 trillion dollars mark, the majority of which being held by the federal government. Even though student loan debt can never be forgiven, roughly 40% of borrowers are currently in either deferment, forbearance or default. Thus student loans are likely the next bubble that is going to pop and send shock waves through the economy. Unlike with the 2008 housing crisis, this time there are not even any tangible assets which can be repossessed. No one is going to try to vacuum the so called ‘education’ you received back out of your head.

Related: How Liberal Arts Hurts Our Economy

2. Social Security System

Thus the younger generation of people working today are paying into a system which will likely provide them with much less benefits in the future than it does now for current retirees. Given a big enough budget crisis, there is a change the whole system may even become privatized.

3. 30 Year Home Mortgage

Assuming that you successfully make it to the end of your 30 year loan, and you don’t move and lose money due to reselling the house, then you will likely come close to paying twice what the house was originally worth. Not to mention paying for all the additional upkeep that needed to be done during those three decades. There is also no guarantee that the value of your home will even appreciate greater on average than the rate of inflation. You will also be stuck continuously paying property taxes each year even after fully owning the home.

Related: Millennials Won’t Ever Own Homes, Here’s Why

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Michael appeared on The Dating Abroad Podcast several times.

You can download his episode about Russia for free (normal members pay $9.99/m) here

www.DatingAbroad.net

 

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