20% of Recent College Graduates Unemployed

Employment news seems to be getting more grim.  20% of recent college graduates are now unemployed.  This will undoubtedly have generation-long repercussions.  Unless a real job creation mandate is set in place, America’s future workforce will fall even further behind their international counterparts.  Combined with non-dischargeable student loans, the default rates are surely to skyrocket and probably result in the next financial crisis (mortgage and tech bubble being the last two).

Student Loan Default close to 9%

Unsurprisingly, student loan defaults have increased by 25% to a rate of 9% overall.  Currently, student loans can NOT be discharged through bankruptcy unless the filer meets a ridiculous standard set in place by banks and the politicians they have pocketed.  The default rate will undoubtedly rise with the economy remaining stagnant and the massive influx of college graduates looking for work.  There has been a movement to have student loans dischargeable, which arguably would stimulate the economy more than any other plan proposed by Democrats or Republicans.  The online petition has gathered more than 270,000 signatures.  It definitely is about time to make student loans dischargeable, so it will be interesting to see if the politicians pay heed to their constituencies.

Michael Vick’s Bankruptcy

There have been headline news lately concerning the size of Michael Vick’s $100 million, 6-year contract with the Philadelphia Eagles.  Some people are outraged that a convicted felon can be afforded so much money, however Mr. Vick will most likely only see a small fraction of that amount.  The star quarterback filed for bankruptcy in 2008, and under the bankruptcy plan approved by in the Bankruptcy Court in Virginia, Vick must repay his creditors by liquidating his assets and including future pay.  Fast forward to today.  It is estimated that Vick is only guaranteed 12-13% of the new contract.  Of the $100 million, only 40% is guaranteed because of the injury prone nature of football.  Furthermore, after taxes and payments to the bankruptcy court ordered creditors, Vick will be left over with only a fraction of the headline making contract.