Kohinoor wrote:But guaranteed and loaned directly would work very differently, no? If they're guaranteed, then any shortfalls are repaid and so asset-backed securities based on those loans don't experience a shortfall. If they're direct loaned, why would we assume that the government would print money to remedy the shortfall to itself?
very valid point.
I think what everyone is missing are the long-term implications. while ppl graduating right now may be unemployed for a little while, maybe even default, long term our generation WILL replace the older generation(s). they physically cannot last forever. so someone defaulting right now at 25 y/o, that is w/e. but 15 years from now he will have some kind of job. and if he hasn't paid those loans back, then he will still be paying. like the IRS, the Department of Education is not going to forget.