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View Diary: Is The Student Loan Debt Bubble Bursting? (updated) (334 comments)

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  •  Who owns this debt? (2+ / 0-)
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    kyril, elwior

    I assume it's not the banks that issued them, and that they've long since been converted into CDO's, which were then transferred off the books via CDS's. So who's left holding the bag now, German banks again?

    Put another way, who will the federal government have to bail out now? And can it be done in a way that doesn't cost taxpayers yet more money, and instead costs the current owners (and in some cases originators and swappers if done fraudulently), if need be leading to insolvency and government taking them over.

    Sounds like a job for Sheila Bair.

    "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

    by kovie on Wed Nov 28, 2012 at 02:31:28 PM PST

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