viewed from this perspective, the loan forgiveness is a subprime degree bailout for a social class that's too big to fail
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It'll be a couple of years, but I'll be very curious to see who actually gets the relief after the dust settles, and what they do with it. Since they will be mostly younger (mostly 30s), 10-20k of relief will not have an immediate impact, but just move the discharge date up
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So one good thing about this kind of bailout is that the impact will be spread out over time... people will exit debt traps a few years earlier on average, with a small boost to aggregate demand starting immediately and peaking in about a decade, of $500-$1000/per capita/mo
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But people may modify spending early in anticipation of greater income freedom in the future, so it should start showing up in housing demand going up earlier perhaps
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