Monday, October 17, 2011

Occupy Orman

Paul Krugman points his readers to this column by Suze Orman, in which the personal finance guru endorses the Occupy Wall Street protesters, and rails against the unfairness of the events that have transpired over the past few years, with major banks and other financial institutions seeing massive bailouts while ordinary homeowners, their mortgages under-water, have been left out to dry.

One point Orman makes is to note the unfairness of a system in which our youth are graduating from college loaded up with student loan debt, and few if any job prospects to help them repay it. Furthermore, recent legislation makes this debt nearly impossible to discharge in bankruptcy court. It's no wonder the kids have taken to the streets.

By manner of comment, I would like to repeat something I have said in other venues: when future historians look back at the wreckage that is becoming of the American economy, they will note with sadness our skewed priorities. And they will wonder how it is we ever got to a point where a propective homeowner considerng the purchase of his next MacMansion can rest secure in the knowledge that should things go wrong, he can simply turn his key in and walk away from the mortgage suffering no legal ramifications. Whereas, by contrast, a young person looking over a stack of college prospectuses and trying to decide where she wants to pursue her higer eductaion faces the very real risk that the massive loans she takes out to pay for her education will haunt her for the rest of her life.

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