I made a few predictions videos back in 2017. It has been obvious for years that the student loan debt piled on to the millennials especially during the most recent recession was a drag on our economy and coming to a housing market near you. Then in late 2018 we saw the Housing affordability index hit a wall due to rising home prices, rising interest rates, stagnating wadge growth (ie debt to income ratios to high). My prediction in 2017 (Trumps first full year) is the Federal government would dream up a new way to flood the market with cash in the form of student loan debt forgiveness, (Remember last time it was called "Quantitative Easing", fancy banker speak for bail out the banks.) I predicted the Federal government would decide they could forgive the 90% of student loans backed by the federal government and they could tie it to buying a home, the American Dream. Who doesn't like the political optics of that plan. Now I thought there would have to be another housing crisis for this to occur, and now we seem to be getting there.What I didn't expect is Socialism to show up so strong in the Democrat Party, but it has. The new congress woman Alexandria Ocasio-Cortez, Self Described Socialist, has plans for Free College for all, free medical care, 70% tax on the rich and .............a Student Loan "Debt Jubilee". Yep, no tie to any housing benefit just foresee money. FREE FREE FREE. Has anyone ever heard the saying "Nothing is free in this world".Now before you jump on your Red box, or Blue box to blow up my comments about this political party is right and that political party is wrong, I want to remind you BOTH of our current political parties have a strong propensity to pile on more debt and more government programs, mostly because the optics of free stuff is the best way to get re-elected. It's hard to get re-elected telling people we have to live within our means.For that reason I think both sides of the isle will find away to come to common ground to add another 1.4 trillion to the debt for Federal Student Loan forgiveness. I'm not saying it's right but I'd rather it go directly to the people instead of the bankers or corporations. What do you think?
