Bank ATM machines should have a double or quits button for the days when you're feeling lucky.

[davywavy]

Just as a thought: given that the sub-prime mortgage crash was caused by it being government policy to encourage lending to people who never had any chance of paying their debts... is it just me or does the student loans system look like a credit bubble and collapse in the making?

Comments

People would just keep pressing the button

[(Anonymous)]

...because in the words of Norman Leigh, "Unlike you, the bank can't get up and walk away from the table."

H

[kathminchin.livejournal.com]

Hopefully the Government has realised how few of the loans will actually get paid off ...?

Oh hang on. This is the same Government that keeps coming up with brilliant ideas like "house swaps" without actually having a clue how the benefit system or indeed social housing system actually works. Starting with the concept that a house swap system is already in place ...

[belak-krin.livejournal.com]

Since I'm not in a 'graduate job' my monthly repayments are less than the interest that is collecting on my debt. I don't think the problems with the loan system are anything new.

Of course, our local Councillors just voted themselves a 25% pay increase while the council staff are waiting for details of this years 10-30% job cuts so I may be giving up on the idea of logic within the political system as a whole.

[belak-krin.livejournal.com]

To be more exact its why you shouldn't let people vote whether or not they should get a pay rise... apparently the head of a council is likely to accrue £38,000 of expenses in the execution of his duties.

http://www.cambridge-news.co.uk/Home/Councillors-award-themselves-inflation-busting-increase-19102011.htm

I apologise for linking to this article, because CEN makes the Daily Mail look like a carefully balanced, well researched and responsible newspaper.

[(Anonymous)]

Or you could just choose unsalaried people for life, by lottery. It might just work. I can see it now, we could call it the "House of Lords"

H

[ddraiggwyrdd.livejournal.com]

I have no idea why we need councils. I've tried to reason it through but, apart from ballsing up my life an increasingly vindictive manner, I can't see what they do that couldn't be done by departments in Westminster.

[matgb]

is it just me or does the student loans system look like a credit bubble and collapse in the making?

Look like? I've done the maths, as have a few other policy types from within our lot.

Take out the full maintenence loan, pay full fees, get an average graduate job and do reasonably well, and you'll still never pay it all off before it's written off after 30 years.

It's obviously not a bubble, as a big chunk of it will be paid back, but some will be written off, and it's all backed by the Govt with trasury bonds funding it.

Which is why, although I really dislike the headline fees increase, my big distaste is with the way it's been handled and presented as overall it's a pretty good deal for the students on it if they actually do the maths, much much better than any of the various graduate tax proposals that've been floating around, especially the one that would've taxed me even though I've also got a 2nd gen loan outstanding as well.

Big difference between sub prime-repayments policed by the taxman...

[davywavy.livejournal.com]

Take out the full maintenence loan, pay full fees, get an average graduate job and do reasonably well, and you'll still never pay it all off before it's written off after 30 years.

So the system is based on an assumption that the debtors will not be able to clear their debt, and was introduced on that basis?

And people call me too cynical to work in politics. Best of luck.