Lender will repossess the autos and anyone who signed for a student loan is debted for life.

I suppose the Federal gov could lower the interest rates charged on student loans and perhaps they could change the laws & allow a court bankruptcy on student loans.

But that means any co-signers will be the ones who lose everything in a bankruptcy.

They'll change nothing.

They enjoy that we are enslaved by our student loans and our car loans. That keeps us working for lower pay. That keeps us in jobs that barely pay for health-insurance. They can continue to erode our pay and benefits and we are powerless--because we've got those payments to make and we have to take the abuse.

This is by design. Anyone who thinks otherwise, is living in sparkle-unicorn-rainbow land.

I shudder when I look at the automotive ads in the Sunday paper. People paying $30k-$50k for a car and financing it for ten years. Seriously, people.

People think absolutely nothing of having a $600 monthly car payment. And they'll gladly sign up, because that's what the Jonses are doing too--and everyone has to keep up with them. If you can afford it, more power to you. But most people cannot. But they'll buy that new $45,000 car because the Jonses did. Problem is, the Jonses everywhere, are broke.

recoverable through repo's and resales for the most part. Most of the Sub Prime stuff has a Credit Insurance thing running inside it. The real scary part is which Reinsurance Company will blow up and need a bail out. Remember the Fed's are looking at several of these large reinsurance companies and are making them increase their reserves to cover such losses. Under Dodd-Frank,these Companies are not cover by and Federal back stop any more and if the crap hits the fan,so be it.

Student Loans are a crisis that is here and now. Had a relative in the last month tell of their dealings with one of their kids loan debt. Fortunate for them they were able to do a work out plan. Still going to be hit of 20k plus. And got a hunch there is more to come on this. How many other Parents are there out there thinking they were doing the right thing in Cosigning documents in order to better help their children's future. Millions? This is the real crisis. Again,it is the 1 %ers and their extended families,thought Hedge Funds and other entities that will reap the rewards of American Families trying to better their responsibilities to Society as a whole. Got the Degree with honors,no job openings,unable to repay their debts in a timely manner,now Mom and Dad get hit with a Judgement or a Lien or a Garnishment or even a IRS hassle.

Something seriously wrong with this picture.

What could possibly go wrong? You know, especially when the cost of those educations is inflating much faster than everything but health care and the cost of the F-35.

The real estate market blew up in 2008 because mortgages were being granted on the premise that salaries would rise to meet the costs. They didn't. Student loans are being granted on the same premise and the salaries not only aren't rising, in to many cases they won't be there, at all.

Anyone who doesn't think this is going to go "poof" hasn't been paying attention. Will this finally be the one to break the derivatives casino? Who knows? If enough insiders panic at the same time, maybe it will.

What everybody does know is that our system is unsustainable and that any economy that has become this topheavy has toppled, spectacularly.