This has been a long time coming, hasn't it?
It's time for us collectively as a generation (Millennials) to say enough is enough to the old money. It's about time we start investing in ourselves and showing the boomers, and people who have screwed our future that it takes two to tango. You see, our daftness and lack of regard to care have left the door open for older generations to berate us for every ailment they have produced in society. We as a collective are the perfect straw man to blame all of our societies problems on since we 20 somethings were obviously laying the ground-work for our generation to be in ruins financially. It's been the standard fare for almost two decades, and the excuses for other peoples own shortcomings are never exhausted.
Oh yes, tell us more about how we can't stop buying our Avocado toast, and how we're just a bunch of snowflakes who have never seen any hardship like "back in my day" *Spits on millennials again* Could you please continue to tell us more about how our generation is going to ruin the future for *insert claimant here* and how you can continue to generalize all of our behavior. All 80 million of us.
Ahh yes. It was us when we were in middle, junior high and high school who created the Housing Crisis that sent financial markets into a tailspin a decade ago. It was all of us "hipster millennials" that created the pre-conceived notion that you "go to college, work hard, get a job somewhere that pays a salary". Yes, it was us who sold bonds that were backed by mortgage securities and we were the ones who gave them triple-A ratings saying that everything was fine and that nobody would pay their mortgage. Yes indeed, it was us who sold those mortgage-backed securities to Bear-Stearns and the Lehman Brothers which caused the collapse of one of the oldest financial institutions in America. Ahh yes, us millennials were hard at work during the 2008-2009 recession, making sure that your stock holdings and savings were depleted as a result of the financial deception we had been brewing for thirty years prior to putting you in that situation then. We may just be the most deceptive generation alive: Creating a financial crisis and the seeds of its foundation almost two decades before the name of our generation was conceived. Baby boomers have underestimated our craftiness at destroying society for a long time,(besides blaming us on every ailment our society has) and now that we have an idea of how to invest ourselves...we're about to do it all over again.
Of course, this is nothing new. Older generations have always used the younger generations as the sole of their boots to stomp on their complaints that were adopted to them as a result of the generation prior. There's nothing new about that. This has been a longstanding tradition throughout human history I wouldn't argue against that at all. What is unique about the situation of today is the absolute reaping of other people's futures financially through seeds sown under the guise of loans and exorbitant interest rates. "But Sean- your interest rates wouldn't be so high if you had credit...." -said every adult and child who had a credit card handed to them. I myself have had to earn every bit of my credit on my own, a rare commodity today.
For most people in my demographic it might be reasonable to be cautious after seeing our parents lose their jobs, our families lose their homes, and savings wiped out from malpractice in the financial realm that still persists today. It might just be slightly reasonable we reconsider taking that loan that any bank would give to a younger person when you realize down the road that you will still be paying off said loan may be more than twenty-five years from now. Especially Student loans.
I UNDERSTAND that is NOT the case for everyone. Some people are fortunate enough to be able to take loans from their parents at a significantly discounted rate rather than from a bank. Some people will never have to go through the process of taking out a loan due to amassed capital. Some people do not always face financial hardships of the poor and lower classes. That is a good thing for them, so it seems, and this article is not bashing anyone in that boat. If indeed you are in that classification, congratulations, but keep working hard. For everyone else who has no choice but to start from scratch, on their own, for everyone who has felt the wrath of the economic winds of change, and who seek to find a way out through their education and investments, this may resonate.
The worst offender of these loans are the ones with the promise to provide you with a better future after taking them on. Of course, I'm talking about student loans. Student loan debt and the scam that is college are only growing, and the amount of debt that people are forced to take on is growing as well. The average student that graduates with a Bachelor's degree now has almost $40,000 in debt after graduating. When you have an interest rate that reaches into the high teens and low twenties you start to realize that the 40k you have in student loan debt is going to end up being 65k and still being paid off into your thirties and forties.
So what is a person like that supposed to do when it seems like all other things are going against their grain? Give up and curl in a ball and cry until someone comes and helps you? While that may be the ideal turnout for a baby boomer to see a person in such a broken state, that is not the option I'm going to present to you today.
For most of us things aren't that fantastic. If you look at stocks things are okay, if you have a 401k, maybe it's doing alright (I'd cash in on that before the institution managing it does and sells it to somewhere else for a quick profit), and for some people things couldn't be going more swimmingly right now, but whatever comes up must also come down. Right now it's hard to measure if the United States is actually doing well economically. We're a debt and service-based economy running on the fumes of a fiat currency financial system that is backed by nothing but our faith in it having value. Hence " In god we trust " on every piece of currency we have, just to remind you that we are all totally screwed if this thing loses steam. \
As of now, the current student loan debt is around $1.5 Trillion dollars, and delinquencies, as well as defaults, continue to rise. The outstanding debt will also continue to grow as interest rates rise, and bonds are issued to loan collectors hungry for their next target. Pair that with the fact that education costs have risen over 150 percent the past decade and you have a problem that is so visible you'd have to actively do lobotomies on yourself to keep the cognitive dissonance at bay.
So while the fat-cats err- I mean financial institutions and loan and debt collection companies continue to have their cake and eat it too, we as a generation are thrown to the wayside and extracted for as much as we are good for until the next person circles around for their token to the system that has so graciously bestowed them with financial success in the form of tens of thousands of dollars of debt necessary to attain a level of status through education that is on par with the value of a person with only a high school degree from the 70's.
If this makes you upset, good, you are waking up to one of the greatest scams ever pulled off in human history. If you don't get upset you're going to continue to accept a lifestyle that offers diminishing quality all the while accepting it and letting it cast you by the wayside. While it's pretty bad as a whole right now, it's not that bad that we are who our parents have made us become. We are the most educated, technologically adaptable generation the Earth has ever seen. We have a chance to re-shape the society we've been told is "just the way it is" by the same people who defecate on us in the media, and smoke cigars with their thousand dollar wine bottle at a restaurant all the while being served some pork shoulder some MILLENNIAL probably had to cook for them getting paid less than abjectly impoverished wages.
So, what can we do to make some progress on this? Stop paying our loans? We could do that, but that would make costs spring up elsewhere down the road from us. Plus on top of that, A LOT of people would be pretty upset if a decade's worth of college graduates had their debt absolved after paying off loans for a long time themselves.
Let's put ourselves in a different pair of shoes to exemplify what I'm thinking of here. Let's say that you're an executive of JUUL or a liquor company. You're in the upper brass of the ecosystem at the company and you decide you want to diversify your assets. So what should you start to dip your toes in as an investor? Medical technology stocks, and things that are invested in curing people of nicotine/alcohol addiction. You dip in some funds there, and then you also continue to pay as a company, or group for lobbying against those companies you've invested in and their treatments/ cures for whatever ailments juuling/alcohol addiction creates, that way you can continue to prop-up and perpetuate the system you've created. By doing this you're preventing the patrons you've sold your products to from healing, and you're keeping them hooked on your product as well.
Now, let's take this idea and turn it on its head for student loans and loan debt collection companies. Instead of taking your monthly student loan payment, why not invest that money into a predatory loan collection debt service that is hired out to collect from defaulters of student loan debt? The number of people defaulting and the rate of defaults will continue to grow as inflation and interest rates rise, plus if there's a market correction I guarantee you people will be more concerned with keeping the lights on than if Sallie Mae gets their student loan debt collection. By doing this we would be justifying the existence of these bets against student loan collection, and we'd be fueling the necessity for them as well. Of course, the massive bubble that is student loan debt would have to continue to be perpetuated by us, slowly, but if we were to sell out at the right time, the long game profits and ROI from doing this could be huge. By doing this, not only would we put ourselves at an advantage in the event of the bubble bursting, but we'd have a large stake of our own in it.
Plus by us continually hopping on this train as the largest generation in American history, we would be adding significant amounts of outside investment to these companies, increasing their values and thus increasing the amount of money we reap from them when it comes time to sell, plus the bonus of receiving a share dividend. We are being sold out as a generation, so it's simply time we start getting in on the action ourselves and beating the system at its own game. I'm not hearing so much laughter from Boomers now.
It's time for us as a generation to draw this scheme, design this bubble ourselves and beat down on the doors of those who assassinate our characters every day from their gilded towers of others labor. It will quite literally be economic suicide where we commit to the system unlike any generation that came before us, and unleash capitalism as a generation on those who have manipulated it to their benefit for the past decade and a half, all the while they get to complain how our $4 avocado toast is what is ruining their standard of living.
As a generation, we are already being shorted, so why not blow that pool up with hot air and some scale to this thing? What better way to rise up and out of poverty from a broken system than to twist it on the people who conveniently die after turn away an eye to the disasters they create and benefit from the same rewards they do simultaneously? Seriously, at this point, what would be more beautiful than for a generation who has constantly been criticized for not understanding money and ruining the economy to take the system that is shifting the future of themselves and do it better than the people who originally designed the shafting? On top of that, we will still be alive too!
In a world where reality isn't even real anymore, and we constantly question what the reality that is being sold to us is, it makes so little sense it begins to make sense when you see the wheels turning. I know it's a long-term decision to make, but that's the only game that matters anymore anyway. It's a lot to think about, but I think it's a path our generation will confront, or choose to leave by the wayside like other generations have left our well-being and financial futures.