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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: TobagoJack who wrote (88419)3/26/2012 8:52:57 AM
From: carranza2  Read Replies (2) of 217574
 
Keep your eye on student loans. It is a big market. Like mortgages and credit cards and all kinds of other stuff, they were bundled into ABS vehicles.

Many of these loans are guaranteed by the US government so they are good, but the non guaranteed ones are, thanks to unemployment, esp. among the young, dicey. It is practically impossible to go BK on them.

Either way, the government stands to lose on its guarantees, but of course this does not affect the ratings of the structured vehicles. Another perhaps big bill for the US govt to pay. The non guaranteed stuff might be toast.

Don't know how much is guaranteed as opposed to nonguaranteed.
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