How the government banker bailout screwed me
Heres how the banker bailout scammed me.
I got my law school student loans from Citi and Wachovia. I figured they would go broke and that some type of haircut would be applied to my loan. Then, in the fall of 2008 the big banks blew up. Citi and Wachovia were in trouble and should have gone to 0. Moreover, the rest of the big banks also should and would have blown up and also would end up in ch 7 bankruptcy. But then of course, the golden rule was applied, “he who has the gold makes the rules”. The big banks got congress to bail them out and also allowed the federal reserve to print trillions. Also, fake accounting rules were allowed to reign. Thus, the big banks survived.
In addition to the above, the federal government decided to buy my loan from wachovia and citi. Now im paying $1045.86 a month to the Department of Education . I made a deal with citi and wachovia, not with myself (i.e. the DOE which is a federal department which is funded by my taxes). I was betting that the big baks would blow up and thus chose them as my lenders (specifically Citi and wachovia). Were the banks to go ch 7 then we would effectively have a debt jubilee and here is how. With all the major credit providers being destroyed due to their own recklessness there would be less credit in the system and less money, thus deflation. Then, my student loans would be sold at a auction to the highest bidder. With less money and credit in the system the bid would be low, .20 to .40 on the dollar. In theory, i could have bought back my own loan for .30 cents on the dollar and that would be the end of my debt slavery.
I always knew that i was overpaying for lawschool ($36,000 a year) but figured that the system would go to hell. Unfortunately for me the golden rule was applied and i got screwed by Bernanke, Obama, Geithner, and the rest of the wall street mob. You see, .20 X 36,000 is 7200. $7200 a year for lawschool is reasonable and fair value i believe. A bunch of professors spoke and repeated the same things they spurt year after year from a outline. Yet i got stuck with a massive loan because i went to law school at the height of the credit bubble. Deflation is occuring all around us yet i still have to pay par value to the DOE, which paid Wachovia and Citi par for my notes. The federal gov had no authority to buy my loans from the banks which should have failed, yet now im stuck with the bill while wachovia (now wells) and citi got the cash and split. This is fascism at its finest; merger of corporations and government. I made a deal with two lenders, not the fed government. The people on the other end were going to disappear (as corporations they are ficticious entities that exist only as a abstraction of a bunch of numbers). Yet, my government, basically me, bought my own loan and now i have to pay it to myself. In reality, the people in charge of the government (whichis not me but a bunch of criminals that control a racket) bought a loan from private sector loan sharks. Ridiculous.
This is how i got taken in the takeover.
I kinda sorta feel for ya. But I believe you got the next best license to steal after a bank charter. You will more than make it up on the back end. Why not become a lawyer for CITI or another Wall Street bank?
I dont believe in the creed of “if you cant beat them join them”. Rather, i subscribe to this creed, “be in the world, but not of the world”.
Also, regarding my license the job market is a absolute disaster in California. Im competing with attorneys that have 2-3-5-10 yrs experience that are willing to work for much less then before. There isnt much $$ less for attorneys anymore, unless your in the top 10% of the top 10 law schools, which i definitely was not a member of.
i am VERY confused. I guess I would like to know why you would post this info here? I seem to recall not too long ago you started a thread proclaiming your joy at having passed the bar. Congrats by the way. Now you are complaining about the competition. You tried to beat the house and the house won. You made a career choice. Free choice? Since you are not of the world what is the problem? I work in countries where two thirds to 90% of the people do not have enough to eat. where water borne disease is a major killer. Where AIDS is present in over 50 % of the population. Where there is no social safety net, forget about national health care they would just like to see a doctor once a year. Those people have problems Last I looked this was still America. You got a license go to work for yourself. Move to a different state, Join the Armed services. Get a government job. Or better yet join the Peace Corp and see how the rest of the world lives IN it. Best of luck the world is your oyster swallow it whole.
PS I remember Hari Dass was once asked whether it was spiritually better to be a vegetarian or to eat meat. He said when food is plentiful there are rules about what to eat. When food is scarce you will eat anything
It stinks that your bet didn’t pay off. I wish you the very best.
Welcome to the debt slave club. Unfortuantely bankruptcy doesn’t discharge school loans or IRS debt. I found out the hard way when the IRS levied me for 1.2 million. You just have to pay “the man” and go on.
The good news is: you are intelligent, educated, and motivated. You have a wealth of alternatives to being an ambulance chaser. My first word of advice is: exit California.
“I was betting that the big baks would blow up and thus chose them as my lenders (specifically Citi and wachovia). Were the banks to go ch 7 then we would effectively have a debt jubilee”
You made a bad bet, that you would get a debt jubillee.
You have nothing to complain about. Do the honorable thing, and stick to the deal, and stop complaining.
People with your attitude truly make me ill, and give me a bad feeling about the future of the country.
Kindly GROW UP and start behaving like a responsible adult
Why would you think there would be a debt jubilee? When banks or anyone else go under, judges take ANY remaining assets and auction them off in order to pay off creditors. Those picking up the assets may get bargains by paying pennies on the dollar, but why would you think your loan would be forgiven? The asset, your loan, get’s bought at a discount. That means someone pays less for it than the original loan amount, but that has nothing to do with you paying less. In order for that to be a deal to them, you have to continue paying the loan at par. If you want a debt jubilee, you have to do what Citi and Wachovia did and go bankrupt. Maybe then a judge will sell whatever assets you have below par in order to pay off you debts. You don’t have to be in or of the system, but you do need to understand the system.
Sounds to me more like you tried/hoped to scam the banks and it just didn’t work out. Your new profession tends towards the scam side of things, so I guess they taught you well, but ethically it is my opinion that you are simply wrong. You contacted a debt and now you need to pay it off.
Welcome to the world.
Farmer Brown is exactly correct.
..being required to hold up your end of a contractual obligation and is a scam ?…….interesting perspective.for an attorney