So I apparently do not understand student loans. The US has just broken the 1 trillion dollar mark on student loan debt. That’s not entirely remarkable on its own, but not too long ago the banks had to be bailed out because they had no money.
If the banks had no money, how did they lend out over a trillion dollars worth? I’m apparently missing something, because I would think that the news would have caused another uproar. The US Government is the only entity within the US, that I’m aware of, that is allowed to give away more money than it has. I was under the impression that no business could.
And yet, here we are. Is this entire trillion part of the 0% interest loans the banks got from the government (this I believe has recently ended but I’d double check on that)? That’s a remarkable amount of cash to hand to any organization. If this is the case there should be some serious changes, no organization or group of organizations should be handed anywhere close to a trillion dollars.
I don’t even think science could efficiently use that kind of money, there would be immense levels of waste.
So yes, this confuses me, confounds me, leaves me bamboozled, and flustered. The math really doesn’t work in my brain. Is this just another undiscovered bubble waiting to burst?