Sanders to propose canceling entire $1.6T in US student loan debt

Re:Sanders to propose canceling entire $1.6T in US student l... by supercanuck on Monday June 24, 2019 @12:05AM (#20260476)

>By the numbers: Sanders plans to pay for the action by hitting Wall Street with a tax his campaign says will raise $2.2 trillion over 10 years, according Vox.

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Re:Sanders to propose canceling entire $1.6T in US student l... by qub1t on Monday June 24, 2019 @12:41AM (#20260609)

https://en.wikipedia.org/wiki/Swedish_financial_transaction_...

This is some relevant background reading for anyone who thinks Bernie's tax revenue numbers are realistic.

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Re:Sanders to propose canceling entire $1.6T in US student l... by Macross8299 on Monday June 24, 2019 @09:29AM (#20263345)

>The volume of futures trading fell by 98% and the options trading market disappeared

You have to wonder what the second-order effects of the options trading market disappearing (or being severely reduced in volume) would be.

I know there are some pretty important businesses that depend on options to hedge against commodity prices. Airliners and oil come to mind.

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Re:Sanders to propose canceling entire $1.6T in US student l... by ptah on Monday June 24, 2019 @11:27AM (#20264452)

i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this

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Re:Sanders to propose canceling entire $1.6T in US student l... by AnimalMuppet on Monday June 24, 2019 @01:10PM (#20265832)

Would it? It wasn't options trading that caused 2008; it was bad home loans.

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Re:Sanders to propose canceling entire $1.6T in US student l... by ptah on Tuesday June 25, 2019 @04:06AM (#20272046)

yes. the derivatives built on top of bad home loans caused the contagion. it would have been close to a non-event if there were no derivatives based on the bad homeloans.

https://www.investopedia.com/financial-edge/0210/did-derivat...

https://www.thebalance.com/role-of-derivatives-in-creating-m...

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Re:Sanders to propose canceling entire $1.6T in US student l... by kenneth on Wednesday June 26, 2019 @09:51PM (#20291090)

The derivatives were traded in massive blocks, not in high-frequency transactions where fees adding up matters.

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Re:Sanders to propose canceling entire $1.6T in US student l... by jquery on Monday June 24, 2019 @12:10AM (#20260504)

As we learned in 2008, taking $2.2 trillion from "Wall Street" will have major effects on "Main Street" (we nearly had a total economic meltdown over Wall Street holding a "mere" $0.5T in toxic assets). Wall Street is not some wholly separate entity from the rest of the economy.

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