Announcement

Collapse
No announcement yet.

Profiting off​ impending collapse

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Profiting off​ impending collapse

    No doubt, the student loan bubble is seconds from popping, which will have widespread financial implications. There have been multiple articles over the past few weeks detailing the inner chaos and confusion in our government as it pertains to pslf, including lawsuits initiated by frustrated borrowers. I see the writings on the wall. As a WCIer, I prescribe to all of his tenets. But, I wonder if there's a way to financially​ profit from this "foreknowledge," I.e actively investing in certain stocks or hedging certain bets. Thoughts?

  • #2


    But, I wonder if there’s a way to financially​ profit from this “foreknowledge,” I.e actively investing in certain stocks or hedging certain bets.
    Click to expand...


    No. Don't drink the kool-aid. Better to try your luck in Vegas - at least you'll get free drinks


    As a WCIer, I prescribe to all of his tenets.
    Click to expand...


    Doesn't sound like it to me.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      Lol...I was just wondering

      Comment


      • #4
        I do think you have a point. The amount of debt being accumulated is pretty staggering. And unlike housing in 2007-2009, there isn't even a hard asset to back it up... I think much of this debt is along the lines of subprime loans and the borrowers are are unlikely to profit from them.

        Bu given you are reading articles about it, you don't really have "foreknowledge", rather you just agree that the debt load might cause a financial issue that can be exploited, a la "The Big Short". I'm sure some hedge fund is out there doing this now. Not sure if any of us regular folk will be able to find and pile money into an opportunity like this. And I always find it hard to swallow in trying to bet that the economy is going to crumble and profit off of horrible circumstances of others.

        Comment


        • #5
          Funny that people concerned about debt loads and such things to an alarming degree, see no issue with bonds, etc...as that is what is represented by this category. One persons spending is anothers income. This is the bond portion of your portfolios.

          Most is held by US govt and they have far more latitude to absorb these than if it were solely a private entity. Be careful trying to out maneuver them. Find the weakest hands and examine them in detail related to your thesis.

          Comment


          • #6




            Funny that people concerned about debt loads and such things to an alarming degree, see no issue with bonds, etc…as that is what is represented by this category. One persons spending is anothers income. This is the bond portion of your portfolios.

            Most is held by US govt and they have far more latitude to absorb these than if it were solely a private entity. Be careful trying to out maneuver them. Find the weakest hands and examine them in detail related to your thesis.
            Click to expand...


            Too rational for the board Zaphod.

            Comment


            • #7




              No doubt, the student loan bubble is seconds from popping, which will have widespread financial implications. There have been multiple articles over the past few weeks detailing the inner chaos and confusion in our government as it pertains to pslf, including lawsuits initiated by frustrated borrowers. I see the writings on the wall. As a WCIer, I prescribe to all of his tenets. But, I wonder if there’s a way to financially​ profit from this “foreknowledge,” I.e actively investing in certain stocks or hedging certain bets. Thoughts?
              Click to expand...


              People have been talking about the student loan bubble ever since the financial crisis. Everyone been looking for the next shoe to drop so that they can profit, just as you are asking. It may pop this year, in 10 years, or never at all.

              Comment


              • #8
                While I don't see this as something "seconds away" from collapsing, I obviously think it's a problem.  MBSs are a bit different from SLABs, the main difference being the size of the market and the inability to walk away from the loan.  But the reason for both bubbles are quite clear - government involvement.  Once some fool deemed owning a home and college education as a right they disrupted the market and started bubbles.  Instead of credit being given to those having an ability to pay it was mandated to be given out and backed by the supposed safety of the federal government.  Had politicians kept their meddling hands out of both markets we would have all been better off.

                Comment

                Working...
                X