Gerry Canavan

the smartest kid on earth

Back Home Just in Time for the Economic Collapse Links

with 3 comments

* Fantasy Premier League is starting up again! Email me for our league code or leave a request in the comments.

* My old friend Julie takes the critical thinking skills she honed on the Randolph High School debate team and takes them to the Center for American Progress with a piece on the war on diversity education.

* Jaimee reviews #13 and #14 in the Carolina Wren Press poetry series.

The final section of Pratt’s collection calls on us to transcend our economic predicaments. “Street of Broken Dreams” delves into the mortgage crisis: “No way to tell who owns my neighborhood homes/ until the for-sale-by-bank signs grow overnight.” It is a poem that celebrates the people who resisted their neighborhood home foreclosures, ending with their imagined chants: “We demand. Not rabble and rabid, not shadow, not terror,/ the neighbors stand and say: The world is ours, ours, ours.”

* Also in breaking Jaimee news: her pop culture icons will be hanging in Bean Trader’s on 9th Street starting August 1.

* America eats its future: Debt Ceiling Plans Take Aim At Graduate Student Loans.

* Not-so-post-racial America: As a result of these declines, the typical black household had just $5,677 in wealth (assets minus debts) in 2009, the typical Hispanic household had $6,325 in wealth and the typical white household had $113,149.

* And House Democrats are finally starting to say what I’ve been saying all along. Even if the Republicans are capable of delivering any deal at all—which is by no means clear—there’s no deal they can offer that’s better than eliminating the debt ceiling altogether in one fell swoop. And as I’ve been saying eliminating the debt ceiling completely is now the only way left to calm the markets and prevent a potentially catastrophic downgrade:

Asian stock markets fell Thursday as uncertainty over the U.S. debt ceiling debate continued to weigh market sentiment, while concerns over a stronger yen dragged exporters in Tokyo.

“The scary part of the story is the fact that markets have not priced-in the U.S. defaulting on its debt. Should the unthinkable happen in the next week then a throw back to the chaos of 2008 would again become a reality,” said CMC Markets analyst Ben Le Brun. “Should the majority of opinion be correct and the U.S. does avoid a default, global markets do appear as if they are positioned for a relief rally of sorts. Until then investors should brace themselves for more pain.”

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  1. So graduate students will be faced with a triple whammy: 1) give up substantial income to be a full time student 2) take out student loans that you have to pay to back (or at least pay interest) prior to accruing any true benefit and 3) pay a higher rate on those loans because all borrowing costs more in post-default or (somewhat optimistically) post-almost-default America.

    At least #1 is avoided if you didn’t have a job to give up in the first place. What kind of economic stimulus is it where we encourage less-skilled workers to stay less-skilled? I wonder how much the economy will suffer when loads of 20-30 year old graduate students are given the choice of paying back $1000+ in interest or otherwise buying tangible goods and services.


    July 28, 2011 at 10:51 am

    • …not to mention the prospect of full-scale system failure when a large portion of the millennial generation proves incapable of paying back their student debt. I’m guessing the buzzword will be “generational default.” It’s a mess and only getting worse.


      July 28, 2011 at 12:22 pm

      • Student loan debt overtakes credit card debt for the first time in 2010. The response: let’s make credit debt seem lesser by further increasing “good” student loan debt. Is it a bubble if we trade shed-able debt for the kind that can only haunt you forever?


        July 28, 2011 at 1:59 pm

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