Is the stock market going to tank?

**digitaldeath** · 08-15-2016, 04:37 PM

who even are you? some goldman shill ? dromontana?

**El Chupacabra** · 08-15-2016, 04:43 PM

Originally Posted by digitaldeath

who even are you?

**digitaldeath** · 08-15-2016, 04:56 PM

Originally Posted by Dromontana

Just a student of the great auction is all, nothing more or less. B account still under control of the overlords.

a fuckign bootlicker if you using terms like "the great auction"

**Benny Profane** · 08-16-2016, 05:33 AM

http://www.businessinsider.com/nerom...-halted-2016-8

**neufox47** · 08-16-2016, 06:38 AM

How is it in an age of all time low interest rates my friends who are now successful Dr's with a couple hundred grand in loans are paying 6.8%? Their default risk is about the same as their mortality risk. They have ultra secure jobs paying them several hundred grand a year.

**4matic** · 08-16-2016, 06:59 AM

Originally Posted by neufox47

How is it in an age of all time low interest rates my friends who are now successful Dr's with a couple hundred grand in loans are paying 6.8%? Their default risk is about the same as their mortality risk. They have ultra secure jobs paying them several hundred grand a year.

What kinda Loan?

**neufox47** · 08-16-2016, 07:02 AM

Mix of undergrad and med school, some subsidized some not.

**Brock Landers** · 08-16-2016, 07:03 AM

Originally Posted by neufox47

How is it in an age of all time low interest rates my friends who are now successful Dr's with a couple hundred grand in loans are paying 6.8%? Their default risk is about the same as their mortality risk. They have ultra secure jobs paying them several hundred grand a year.

if they are now successful doctors, when did they take out the loans? I just refinanced grad school loans at 2.19% (variable)

**4matic** · 08-16-2016, 07:09 AM

I'm 15% cash. My yield plays have stalled out: PFF PCK PCQ KO OAK. JNK continues to perform well so have to stay positive. My target for this move was only 2230 ( new high plus 5%). I'll look at more emerging on selloffs.

**4matic** · 08-16-2016, 07:12 AM

Originally Posted by neufox47

Mix of undergrad and med school, some subsidized some not.

I'm.not getting the question. Student loans are expensive relative to rates these days. But, 6.5% is cheap in the universe of loans.

**Mazderati** · 08-16-2016, 07:13 AM

Originally Posted by Brock Landers

I just refinanced grad school loans at 2.19% (variable)

From federal to private or private to private? I had the same terms as neufox's friends and couldn't find anyone to refinance at a lower rate.

**4matic** · 08-16-2016, 07:13 AM

Originally Posted by Brock Landers

if they are now successful doctors, when did they take out the loans? I just refinanced grad school loans at 2.19% (variable)

Didn't know you could refi student loans.

**neufox47** · 08-16-2016, 07:15 AM

Originally Posted by Brock Landers

if they are now successful doctors, when did they take out the loans? I just refinanced grad school loans at 2.19% (variable)

Maybe they just need to refinance. In a world where peiple are buying bonds at negative rates or negligible rates, why wouldn't these same people be lining up to buy my friends debt when the default risk is almost nill?

We contemplated setting up a private loan from my parents, who want passive income with low risk, to them at 4.5%. Details were just too fuzzy.

**Brock Landers** · 08-16-2016, 07:24 AM

I had a mix of federal and private over the years. And Ive consolidated a couple times (quite a few loans)...most of the time I get these refinance things in the mail and I always lob a call- 3 mins on the phone may save a ton of money. Usually never works out (cant refi sallie mae or I make too much or whatever) but I called and went through citizens bank, and bam they took on everything. If you do auto debit, they knock off .25%. If you open a citizens savings account with a minimum of 200 bucks, bam another .25% off. So now I'm in for 5 years at 2.19% variable, reset opportunity monthly. Have them google it. Even if rates went up in 3 years...Ill have saved more by going variable for now, and have a smaller nut to just pay off.

**mcsquared** · 08-16-2016, 07:44 AM

Originally Posted by neufox47

We contemplated setting up a private loan from my parents, who want passive income with low risk, to them at 4.5%. Details were just too fuzzy.

This is probably why they can't refinance.
If they have such a great income and assets, why don't they just pay them off?

**neufox47** · 08-16-2016, 07:54 AM

They have great income, no assets that aren't also financed.

**mcsquared** · 08-16-2016, 08:16 AM

If you think about it being in the student loan business is pretty stupid. There is no collateral, no assets, just the promise that they will make more later. What if they don't? You can't take the education back. There credit will be wrecked but what if they don't care? There is literally nothing you can do. Sure your friends make good money (although not enough to pay off the loans quickly) But just because they make "great income" doesn't entitle them to any rate. The system doesn't work like that. Income doesn't mean anything because it can change. You can make a bunch of money one year and nothing the next 5. Or you can make great money but then have triplets with medical complications or some other life event can change everything. Without assets to put up for collateral there are too many variables. If I was going to make an uncollateralized loan to somebody 6.9% would probably barely be enough.

**Brock Landers** · 08-16-2016, 09:31 AM

Originally Posted by mcsquared

If you think about it being in the student loan business is pretty stupid. There is no collateral, no assets, just the promise that they will make more later. What if they don't? You can't take the education back. There credit will be wrecked but what if they don't care? There is literally nothing you can do. Sure your friends make good money (although not enough to pay off the loans quickly) But just because they make "great income" doesn't entitle them to any rate. The system doesn't work like that. Income doesn't mean anything because it can change. You can make a bunch of money one year and nothing the next 5. Or you can make great money but then have triplets with medical complications or some other life event can change everything. Without assets to put up for collateral there are too many variables. If I was going to make an uncollateralized loan to somebody 6.9% would probably barely be enough.

School loans follow you around, even after death. Beats the 15 or 19% on a credit card "loan"

**Benny Profane** · 08-16-2016, 10:09 AM

Originally Posted by mcsquared

If you think about it being in the student loan business is pretty stupid. There is no collateral, no assets, just the promise that they will make more later. What if they don't? You can't take the education back. There credit will be wrecked but what if they don't care? There is literally nothing you can do. Sure your friends make good money (although not enough to pay off the loans quickly) But just because they make "great income" doesn't entitle them to any rate. The system doesn't work like that. Income doesn't mean anything because it can change. You can make a bunch of money one year and nothing the next 5. Or you can make great money but then have triplets with medical complications or some other life event can change everything. Without assets to put up for collateral there are too many variables. If I was going to make an uncollateralized loan to somebody 6.9% would probably barely be enough.

Because it's one of the only major loans that can't be discharged in bankruptcy, and it can follow a person to the grave, like, social security garnished?

There's a bit of a controversy in NJ right now over a case where a mother is still obligated for a loan she co signed for her now dead son. Nice, huh?

**mcsquared** · 08-16-2016, 10:14 AM

Originally Posted by Brock Landers

School loans follow you around, even after death. Beats the 15 or 19% on a credit card "loan"

Yea, I know that. But what if they just don't pay. Sure it never goes away but you have to chase the person, garnish their wages, if they even have wages. What if they go on disability? Can you garnish their disability checks? What if they go to prison? At some point a 6.9% return just isn't worth it.

**Benny Profane** · 08-16-2016, 10:18 AM

Originally Posted by mcsquared

Yea, I know that. But what if they just don't pay. Sure it never goes away but you have to chase the person, garnish their wages, if they even have wages. What if they go on disability? Can you garnish their disability checks? What if they go to prison? At some point a 6.9% return just isn't worth it.

Pretty sure the actuaries and cube monkeys have data on that. Sure, some get lost, but, there's a lot of blood in that stone over time.

**Brock Landers** · 08-16-2016, 10:47 AM

Originally Posted by mcsquared

Yea, I know that. But what if they just don't pay. Sure it never goes away but you have to chase the person, garnish their wages, if they even have wages. What if they go on disability? Can you garnish their disability checks? What if they go to prison? At some point a 6.9% return just isn't worth it.

Youre right, I doubt they thought of that. People just not paying, that is. What if I don't pay off my mortgage and I go to prison or disability? Sweet collateral, a beaten down shithole worth 1/3 the amount I bought it for. Car loan...sweet collateral, your 2004 ford focus with 190,000 miles and a crazy clicking sound.

If someone received a loan, they (or their cosigner) had money. Will likely have a job upon graduation. Will likely pay off part of the loan at the very least. And if not, it is hit first upon death. So theyre getting paid back by either your cosigner, your estate, your cosigners estate.

Benny- what would you do for a 6.9% return right now?

**Benny Profane** · 08-16-2016, 10:50 AM

Sounds good to me. Hmmmm. BP student loans. Come and get em.

**mcsquared** · 08-16-2016, 10:53 AM

Yea, Benny. Why don't you loan neufox47's friends a couple hundred grand? Easy, passive, $14k a year with negligible risk.

**neufox47** · 08-16-2016, 01:26 PM

Originally Posted by mcsquared

Yea, Benny. Why don't you loan neufox47's friends a couple hundred grand? Easy, passive, $14k a year with negligible risk.

I wonder how difficult it would be to create an entity to sweep up a bunch of cream student loans like these. Say you limited it to doctors who are out of residency who are actively practising and throw some income /debt requirements into the mix. There's got to be hundreds of millions in loans like that, almost zero default risk and currently paying 5, 6, 7%. I'd take that over a mortgage to Average Joe any day.