Lee Camp has created an online movement for himself that, as the host of Redacted Tonight, focuses on the foibles of today’s society. And now, in his latest video, he suggests that not only is there a financial crisis on the horizon, but that Trump and his team want it to happen for the benefit of his troubled administration.
“You remember what caused the 2008 financial crisis, right?” he asks in his new video. “It was the sub-prime mortgages — mortgages that people couldn’t pay back because the banks are a**holes.”
Prior to today’s new video, Camp suggested that the banks knew that this crisis was on the horizon, despite the fact that they testified before Congress, under oath, saying that they had “no idea.”
But instead of sub-prime mortgages, Camp suggests that this new financial crisis will come at the hands of the Trump administration’s policy on student loans. Thanks to Trump’s rollback of the Obama-era protections for people in default of student loans, Camp suggests that what America will see, in the coming years, will be worse than what we saw in the Bush-era financial crisis.
The Washington Post is in agreement with Camp’s assessment: the student loan crisis in America is a disaster waiting to happen.
“‘The administration’s first move on the student loan default crisis will do nothing to stop the tidal wave of defaults that is sweeping across the nation,’ said Rohit Chopra, a senior fellow at CFA and a former student loan ombudsman at the Consumer Financial Protection Bureau. ‘With more than 3,000 Americans defaulting on a student loan every day, this just adds insult to injury.’”
But if the student loan crisis in America is a new financial crisis waiting to happen, why doesn’t the Trump administration want to do anything about it?
Simple, suggests Camp: It works out in his favor. The financial downfall will allow Trump to push through even the most controversial plans, and an economically weakened populace will be powerless to do anything about it.
And Camp isn’t the only one to see it. Naomi Klein, the author of The Shock Doctrine: The Rise of Disaster Capitalism, says that this is a common practice amongst various governments, including the American government, harnessed the power of shocks and violence to implement their radical policies. These politicians are followers of Milton Friedman’s free-market economic revolution, and these politicians include none other than Donald Trump himself.
Simon Black, a financial analyst, also backs up Lee Camp’s assessment. Black, who analyzed the effects of the 2008 sub-prime mortgage disaster, also feels that the upcoming financial crisis will be thanks to the impending student loan crisis that Trump and his administration have ushered in.
“According to the Fed’s most recent Household Debt and Credit Report, the student loan default rate is 11.2%, almost the same as the peak mortgage default rate in 2010. This is particularly interesting because student loans essentially have no collateral.Lenders have no security to recoup their loans. So when students don’t pay, someone is going to take a hit. That ‘someone’ will likely be you. That’s because hundreds of billions of dollars of these student loans are either owned or guaranteed by the United States government. So as borrowers stop making payments, it’s the taxpayer who will suffer yet another massive loss.”
•National student loan debt reaches $1.2 trillion
•Over 27% of Student Loans Are in Default
Lee Camp presents an informative, if a bit frightening, insight into what we can expect in the coming months. It would behoove everyone, he suggests, to keep a close eye on the policies of the Trump administration — regardless of their political leanings — to see if a financial crisis is, indeed, on the horizon and how it will be handled.
[Featured Image by YouTube]