[quote=patb]we may still be better off letting them discharge this debt.
we let corporations discharge debt in Chapter 11 and businesses are utterly ruthless, why do we put the dog on people who marry, have kids, etc..
If there is fraud, go after them, but, the system is awash in debt, that has to end.[/quote]
Businesses rarely get capital (loans) unless they have assets, have pitched a concept to a VC for funding or have some kind of track record of success.
Try walking into a bank as a new corporation and trying to borrow an hundred grand. Ain’t gonna happen without them wanting a lot more information. If they aren’t happy with the answers forget it.
I’m all for applying the same requirements to students: you want to borrow a hundred grand for school? What are you going to study? What is the job market like for people with your degree? How do you plan on paying back the money? If the bank likes the answers and agrees with the risk and then the student defaults down the road because things didn’t quite work out like everyone thought then it would be more aligned with your theory.
