Quantitative easing is a stupid way to deal with the zero lower bound
The federal government assumes that almost all student loan debt can be treated as an asset because federal loans are not dischargeable under normal circumstances (i.e. bankruptcy). However, studies by the New York Federal Reserve Bank show that only about 56 percent of borrowers are making payments and among those under 30 and in repayment, more than a third are delinquent. Erin weighs in.
Then, Erin is joined by Nick Rowe – professor of economics at Carleton University in Ottawa. Nick tells us how college students in Canada deal with paying for tuition versus American college students and also talks about market monetarism and how it can make economic policy more effective. His view is that 99 percent of monetary policy is expectations. And the problem with central banks is that they have not made credible and achievable targets. No wonder they are failing.
After the break, Erin sits down with Chris Martenson – co-founder of PeakProsperity.com. Chris gives us his take on the recent fall in oil prices and the latest Geneva Report. He also talks about the potential effects of a weak global economy.
And in The Big Deal, Erin and Edward continue talking oil – just one day before our oil special! Gas prices have now dropped to $3 a gallon for the first time in 4 years. That certainly helps consumers. But is it an unambiguously good thing? Take a look.
Check us out on Facebook: