Bernanke says student debt no threat to U.S. financial system | Reuters

According to Ben Bernanke, former head of the Fed, student loans are mostly backed by the government while mortgages, which sparked the 2008 financial crisis, were held by publicly traded financial institutions susceptible to panic.

Source: Bernanke says student debt no threat to U.S. financial system | Reuters

This article by Reuters highlights the skyhigh levels of student debt in the US, set against a poor outlook for jobs. Without wealthy parents, ambitious young people are forced to taken on student debt. This situation will no doubt color the views of many young Americans ahead of the US presidential election.

This article highlights the risks for young people in other countries, with high levels of student debt. In Europe for example, it is hard for young people to find proper jobs to utilize effectively their education. Typically, student debt levels in Europe do not yet reach American levels.

Part of the problem is to do with technology changing the outlook for jobs and educational establishments not matching educational services with demand for jobs.

Thoughts?

Opinion – Bad Faith. Why Real Debt Relief Is Not On The Table For Greece » James K Galbraith – Social Europe – John Gelmini

International Monetary Fund

International Monetary Fund (Photo credit: Wikipedia)

Whilst I understand this narrative from Dr Alf and James K Galbraith, of malevolent French and German banks and people at the IMF being the culprits, I cannot simply absolve Greece and its Government of culpability.

The UK and America and every country in Europe bailed out the banks and those who controlled them 3 times, yet in the UK not a single banker went to prison and none of the money laundered through hedge funds and secreted in up to 40 different tax havens has been recovered. America is still trillions of dollars in debt, yet not one penny of the $400 billion which disappeared when Lehman Brothers collapsed has been recovered.

The world’s super rich doubled their money before the LIBOR rate rigging scandal, during the period between it and the original banking crisis but everyone else took a substantial and painful “haircut” as a direct result of this “controlled demolition” of the world financial system perpetrated by criminals at the upper end of the “food chain”.

The rest of us could engage in the blame game, riots and civil commotion, just like the Greeks, but we take our medicine with a sense of weary resignation and profound irritation with the authorities, the banks and now the Greeks must do the same.

The criminals are still in position, seemingly untouchable and able to do what they like and short of divine intervention and the actions of an Icelandic style super-bailiff aided by forensic accounts, computer hackers, international lawyers and recovery experts, our money is permanently stolen.

John Gelmini