The opening bid is in on student loans, but the bidding will go much higher. From John Rubino at dollarcollapse.com:
This sounds generous but is actually just the opening bid in a negotiation that will end in a very different, much more expensive place – and that will be repeated for many, many other groups of borrowers. Here’s how this first round will go:
The vast community of ex-college students who still owe big bucks on their much-less-valuable-than-expected college degrees will scoff at Biden’s miserly offer. Articles will appear in the corporate press with headlines like “Bob Smith owes $275,000 on his history degree. $10,000 won’t save him. Not even close.”
The new government – correctly recognizing that deeply-indebted college-educated baristas are a core voting bloc – will immediately come back with a bigger number. This too will be roundly rejected as not fixing the entire problem.
It will only be when the bailout number cracks the $1 trillion mark that the complaining will subside. The Treasury will then write the checks, the Fed will finance the required borrowing, and the circus caravan will move on to the next needy group. Which will almost certainly be state and local governments, whose criminally mismanaged pension funds will make the student loan bail-out look like chump change.