Education Backed Securities.
the biggest problem: unlike housing where there is always at least some recovery of collateral, as the house remains, with student debt there is no recoverable asset as the asset is a human being. Granted said human effectively becomes a debt slave
Back in 2006, I some how made the connection in my mind that medschool is to put someone in financial debt. Doing Clinical mentorships, I kept asking “So when do you actually help people?” I just see the doctor prescribing meds or treating symptoms that have already occurred.
Before the subprime meltdown, I was a lone in my declaration that college is a scam. Nobody around me believed me. I didn’t have James Altuchers blog backing me up, or Zero Hedge to reference. I had no proof. All I had was my ability to make connections from studying many books in finance, and what I learned during an investment banking training course in NYC.
I must take after my father. During his forth year in medical school he dropped out. The day he was suppose to take his boards… his younger brother saw him walking on the street of Saigon. He asked, “Why aren’t you taking the boards.” My fathers response, “Medschool is boring. I want to study Physics.”
The Real-estate Market is Bad
I’m switching topics. I know. It’s late and I’m just free balling it. The real-estate market is bad b/c their is no liquidity. If you want to sell your house b/c prices are crashing; You can’t when there is nobody to buy it. Most likely when you want to sell, there is fear in the market. So nobody wants to buy. In the stock market…there is always someone to buy from you. It’s the specialist. This person or computer of the exchange is required to buy or sell from you. No matter what. The market can be falling faster than an imploding star, and the specialist still has to buy that shit. The specialist is there to maintain liquidity of the markets. That’s why he gets paid the big bucks for taking on this kind of daily risk.
Why isn’t there a specialist for the housing market?