Support for consumer debt write-offs is building.
Forgiveness isn’t the only big idea out there for reducing the economy’s reliance on private debt. Another one is to pay for things like homes or education with instruments that look a bit more like equity, and less like debt.Mian and Sufi suggested a type of mortgage in which the lender shares risks if prices fall, and rewards when they rise. Some lawmakers, educators and investors are applying a similar model to college financing too.
Mitch Daniels, head of Purdue University and a former Republican governor of Indiana, is one of the champions of Income Share Agreements. They work like this: Investors fund students, and get repaid — hopefully with a return on their equity — when graduates start earning the higher wages that a degreeHudson, the historian, also says equity-financing is better. But he thinks the government should play a role.
“The fact is, debt causes instability for a society,” Hudson says. Another lesson he’s drawn from studying credit over thousands of years: “Debts that can’t be paid, won’t be paid.”
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Hot Topic's 24-Hour Sale Has Everything That's On a Teen's Holiday ListShopping for a teenager? They are notoriously difficult to buy for. Fortunately, Hot Topic knows what they want and put it on sale -- for a few hours.
Leer más »
What consumers most want in 2020: a debt-free lifeWhen it comes to resolutions for next year, most individuals would rather save $5,000 than lose 5 pounds. And they'd rather get out from under the weight of their debts before cutting other bad habits.
Leer más »
The FAA administrator and a Boeing whistleblower are set to testify before Congress about the troubled 737 MaxThe FAA administrator and a Boeing whistleblower are set to testify before Congress about the troubled 737 Max. Follow all the developments here.
Leer más »
'She is speaking out to us': Māori leader says volcano eruption was a messagePouroto Ngaropo, standing on an ancient settlement site overlooking the island o...
Leer más »
The Irishman Star on the Movie’s Women: “An Ounce of Silence Is a Pound of Words”This isn’t the first time an Irishman star has had to defend the lack of chatter from female characters in the movie
Leer más »
Roxette's Biggest Billboard Chart Hits: 'It Must Have Been Love,' 'The Look' & MoreA look back at Roxette's biggest hits on the billboardcharts, including 'It Must Have Been Love,' 'The Look' & more
Leer más »