Tag Archives | Default

Revolutionary Potential: Default En Masse

$alt BlogAn op-ed in the New York Times from June, entitled “Why I Defaulted on My Student Loans,” features a picture of a bank-note burning like a draft-card in the Vietnam days. The story begins atomized as the author, Lee Siegel, recalls taking out his first student loan along with his parents at the age of 17, to be met with ‘congratulations,’ from the banker, “as if I had just won some kind of award rather than signed away my young life.”

Soon after, the author was faced with a decision. He could give up on his dreams of being a writer to pursue a life of quiet desperation, working a shit job for shit pay to pay off his massive student debt. Or he could default. The author says, “I could take what I had been led to believe was both the morally and legally reprehensible step of defaulting on my student loans, which was the only way I could survive without wasting my life in a job that had nothing to do with my particular usefulness to society.”

They decided on the latter noting that “It struck me as absurd that one could amass crippling debt as a result, not of drug addiction or reckless borrowing and spending, but of going to college.” As a result of this absurdity “having opened a new life to me beyond my modest origins, the education system was now going to call in its chits and prevent me from pursuing that new life, simply because I had the misfortune of coming from modest origins.”

As a result, Siegel notes that “The banks that made them have all gone under.… Read the rest

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And Now: The Homily from Brother Dimon … U.S. Debt Default Would Be A ‘Moral Disaster’

Jamie DimonIt’s 21st May: If you’re reading this, you’re in Hell; welfare Queen JP Morgan Chase’s CEO, Jamie Dimon provides today’s post-rapture homily via the AP/Huffington Post:

It would be a “moral disaster” if the United States were to default on its debts and become unable to pay its obligations, JPMorgan Chase & Co. CEO Jamie Dimon said at an appearance in Colorado Thursday evening.

The U.S. is the financial linchpin of the world, and the economic effects of the U.S. defaulting could be “potentially catastrophic,” he said at a dinner for the University of Colorado Denver Business School.

“It will dwarf Lehman,” Dimon said, referring to the 2008 collapse of the investment bank Lehman Brothers, which contributed to the beginning of a global financial crisis.

Dimon’s comments came in response to a question about the federal deficit from moderator Tom Petrie, a vice chairman of Bank of America Merrill Lynch.

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