afternoon how are you all today good to be here I’ve never been called a
be here I’ve never been called a
be here I’ve never been called a financial outlaw before but I’m happy to
financial outlaw before but I’m happy to
financial outlaw before but I’m happy to to be called that usually when i talk
to be called that usually when i talk
to be called that usually when i talk about financial things and i know i’m on
about financial things and i know i’m on
about financial things and i know i’m on tape so i should be careful what I say
tape so i should be careful what I say
tape so i should be careful what I say but to my colleagues in law school
but to my colleagues in law school
but to my colleagues in law school they’ll run from the senior common room
they’ll run from the senior common room
they’ll run from the senior common room we start talking about synthetic
we start talking about synthetic
we start talking about synthetic collateralized debt obligations but
collateralized debt obligations but
collateralized debt obligations but we’ll do the best we can today and I
we’ll do the best we can today and I
we’ll do the best we can today and I will stick to retail examples like
will stick to retail examples like
will stick to retail examples like student debt so how many of you how many
student debt so how many of you how many
student debt so how many of you how many of you have debt does anybody have any
of you have debt does anybody have any
of you have debt does anybody have any debt in here come on raise your hand are
debt in here come on raise your hand are
debt in here come on raise your hand are you telling me the people who don’t
you telling me the people who don’t
you telling me the people who don’t raise their hands don’t have been okay
raise their hands don’t have been okay
raise their hands don’t have been okay good mortgages I’m sure you not gonna
good mortgages I’m sure you not gonna
good mortgages I’m sure you not gonna have too many mortgages you will have
have too many mortgages you will have
have too many mortgages you will have mortgages um student debt I’m sure you
mortgages um student debt I’m sure you
mortgages um student debt I’m sure you got student loans right we’re all look I
got student loans right we’re all look I
got student loans right we’re all look I paid off my student loans in my sort of
paid off my student loans in my sort of
paid off my student loans in my sort of mid early 40s I had us student debt okay
mid early 40s I had us student debt okay
mid early 40s I had us student debt okay so anybody have any credit cards for
so anybody have any credit cards for
so anybody have any credit cards for example right could you think that you
example right could you think that you
example right could you think that you could go through life your entire life
could go through life your entire life
could go through life your entire life in our society without debt it’s
in our society without debt it’s
in our society without debt it’s impossible right you can’t live possibly
impossible right you can’t live possibly
impossible right you can’t live possibly live a life in modern societies without
live a life in modern societies without
live a life in modern societies without some form of debt right I mean debt is
some form of debt right I mean debt is
some form of debt right I mean debt is so important to everything that we do i
so important to everything that we do i
so important to everything that we do i mean we actually I what I write about in
mean we actually I what I write about in
mean we actually I what I write about in my paper and some of my work is about
my paper and some of my work is about
my paper and some of my work is about how we need debt actually to lead a
how we need debt actually to lead a
how we need debt actually to lead a decent life we need access to credit
decent life we need access to credit
decent life we need access to credit right to live a decent life in any
right to live a decent life in any
right to live a decent life in any society right now there are two ways to
society right now there are two ways to
society right now there are two ways to understand debt and i think one and both
understand debt and i think one and both
understand debt and i think one and both of these ways work in complementary ways
of these ways work in complementary ways
of these ways work in complementary ways one is the kind of standard way of
one is the kind of standard way of
one is the kind of standard way of thinking about death which i think is a
thinking about death which i think is a
thinking about death which i think is a false way or at least an incomplete way
false way or at least an incomplete way
false way or at least an incomplete way of understanding debt this is thinking
of understanding debt this is thinking
of understanding debt this is thinking of debt as
of debt as
of debt as a tango between two persons right you
a tango between two persons right you
a tango between two persons right you I’m the creditor you’re the borrower
I’m the creditor you’re the borrower
I’m the creditor you’re the borrower right you’re the debtor lender borrower
right you’re the debtor lender borrower
right you’re the debtor lender borrower we have a two person kind of thing going
we have a two person kind of thing going
we have a two person kind of thing going on here we think of it in terms of a
on here we think of it in terms of a
on here we think of it in terms of a matter of contract for all the law
matter of contract for all the law
matter of contract for all the law students in here for perhaps some of the
students in here for perhaps some of the
students in here for perhaps some of the more for some of the philosophical
more for some of the philosophical
more for some of the philosophical students in here we’re studying moral
students in here we’re studying moral
students in here we’re studying moral theory for exam we might think of paying
theory for exam we might think of paying
theory for exam we might think of paying debts as a matter of virtue right but I
debts as a matter of virtue right but I
debts as a matter of virtue right but I think we have to sort of go beyond these
think we have to sort of go beyond these
think we have to sort of go beyond these kinds of concepts of kind of a binary or
kinds of concepts of kind of a binary or
kinds of concepts of kind of a binary or bipolar relationship between people and
bipolar relationship between people and
bipolar relationship between people and think of debt in a different way debt is
think of debt in a different way debt is
think of debt in a different way debt is actually also a tale of many tangos
actually also a tale of many tangos
actually also a tale of many tangos right in a big tango will call society
right in a big tango will call society
right in a big tango will call society right this one big tango we have called
right this one big tango we have called
right this one big tango we have called society we want to make sure all the
society we want to make sure all the
society we want to make sure all the other sort of tangos that we have
other sort of tangos that we have
other sort of tangos that we have individually or between us and very
individually or between us and very
individually or between us and very large financial institutions kind of
large financial institutions kind of
large financial institutions kind of work in that society and are no fair and
work in that society and are no fair and
work in that society and are no fair and sort of sustainable so let me talk about
sort of sustainable so let me talk about
sort of sustainable so let me talk about that so there are actually two parts to
that so there are actually two parts to
that so there are actually two parts to debt it’s a tale of tattoo of a tango
debt it’s a tale of tattoo of a tango
debt it’s a tale of tattoo of a tango between two parties but it’s also a tale
between two parties but it’s also a tale
between two parties but it’s also a tale of many tangos the second thing I want
of many tangos the second thing I want
of many tangos the second thing I want to tell you is that that also is about
to tell you is that that also is about
to tell you is that that also is about to other things one if you look at the
to other things one if you look at the
to other things one if you look at the way financial regulation works for those
way financial regulation works for those
way financial regulation works for those of you who are law students we talk
of you who are law students we talk
of you who are law students we talk about financial law or financial
about financial law or financial
about financial law or financial regulation or the law of debtor creditor
regulation or the law of debtor creditor
regulation or the law of debtor creditor relations whatever you want to call it
relations whatever you want to call it
relations whatever you want to call it the overriding norm fundamental norm
the overriding norm fundamental norm
the overriding norm fundamental norm that exists remember we have that thing
that exists remember we have that thing
that exists remember we have that thing called the financial crisis right where
called the financial crisis right where
called the financial crisis right where everything went crazy right the
everything went crazy right the
everything went crazy right the overriding financial norm after that
overriding financial norm after that
overriding financial norm after that crisis is financial stability we want
crisis is financial stability we want
crisis is financial stability we want the system to be stable right now the
the system to be stable right now the
the system to be stable right now the problem with stability is that stability
problem with stability is that stability
problem with stability is that stability might be just bad for poor people right
might be just bad for poor people right
might be just bad for poor people right that’s the basic problem because
that’s the basic problem because
that’s the basic problem because stability lets us kind of aggregate all
stability lets us kind of aggregate all
stability lets us kind of aggregate all of our interests together and say
of our interests together and say
of our interests together and say overall
overall
overall what we need is stability in society
what we need is stability in society
what we need is stability in society right so we have this overall goal but
right so we have this overall goal but
right so we have this overall goal but how about how that affects each one of
how about how that affects each one of
how about how that affects each one of us each person right because when we
us each person right because when we
us each person right because when we start talking about ourselves from a
start talking about ourselves from a
start talking about ourselves from a moral perspective we want to respect
moral perspective we want to respect
moral perspective we want to respect each single person right and from that
each single person right and from that
each single person right and from that perspective we need to understand debt
perspective we need to understand debt
perspective we need to understand debt from the standpoint of what we call
from the standpoint of what we call
from the standpoint of what we call egalitarian justice right how does it
egalitarian justice right how does it
egalitarian justice right how does it affect me right as in terms of my access
affect me right as in terms of my access
affect me right as in terms of my access to credit giving me access to resources
to credit giving me access to resources
to credit giving me access to resources that I need to live a decent life now
that I need to live a decent life now
that I need to live a decent life now you might say well don’t go into debt
you might say well don’t go into debt
you might say well don’t go into debt then this is your problem right it’s a
then this is your problem right it’s a
then this is your problem right it’s a matter of choice but i think choice we
matter of choice but i think choice we
matter of choice but i think choice we have a false belief about how much
have a false belief about how much
have a false belief about how much choice matters but let’s get started I
choice matters but let’s get started I
choice matters but let’s get started I want to just kind of give you some
want to just kind of give you some
want to just kind of give you some backbones before I get on to the
backbones before I get on to the
backbones before I get on to the question of choice here’s the kind of
question of choice here’s the kind of
question of choice here’s the kind of dilemma we face a dilemma when we talk
dilemma we face a dilemma when we talk
dilemma we face a dilemma when we talk about debt and here’s the dilemma that
about debt and here’s the dilemma that
about debt and here’s the dilemma that we face debt too much debt is we need
we face debt too much debt is we need
we face debt too much debt is we need debt so debt is good for us but we also
debt so debt is good for us but we also
debt so debt is good for us but we also need to avoid debt because it’s bad for
need to avoid debt because it’s bad for
need to avoid debt because it’s bad for us right it presents a classic kind of
us right it presents a classic kind of
us right it presents a classic kind of contradiction right so how do you get
contradiction right so how do you get
contradiction right so how do you get that balance right right so here’s a
that balance right right so here’s a
that balance right right so here’s a kind of classic kind of setup I know you
kind of classic kind of setup I know you
kind of classic kind of setup I know you guys might get bored with I’m sorry Oh
guys might get bored with I’m sorry Oh
guys might get bored with I’m sorry Oh mortgages and everything but think about
mortgages and everything but think about
mortgages and everything but think about how mortgages for a second if you get a
how mortgages for a second if you get a
how mortgages for a second if you get a home mortgage eventually you know when
home mortgage eventually you know when
home mortgage eventually you know when you’re ready that may seem like a lot of
you’re ready that may seem like a lot of
you’re ready that may seem like a lot of money to you it’s not that far away
money to you it’s not that far away
money to you it’s not that far away believe me yeah I’m sure he’ll be fine
believe me yeah I’m sure he’ll be fine
believe me yeah I’m sure he’ll be fine you’ll be getting bigger mortgages and I
you’ll be getting bigger mortgages and I
you’ll be getting bigger mortgages and I will get right let’s say that how the
will get right let’s say that how the
will get right let’s say that how the price of your house you buys sorry I
price of your house you buys sorry I
price of your house you buys sorry I have a bad Los Angeles version of house
have a bad Los Angeles version of house
have a bad Los Angeles version of house prices which influences everything now
prices which influences everything now
prices which influences everything now four hundred thousand pound house right
four hundred thousand pound house right
four hundred thousand pound house right I’m going to buy right here’s the
I’m going to buy right here’s the
I’m going to buy right here’s the dilemma now this is the magic of
dilemma now this is the magic of
dilemma now this is the magic of leverage right leveraged by the way
leverage right leveraged by the way
leverage right leveraged by the way underpins almost everything in financial
underpins almost everything in financial
underpins almost everything in financial markets if you understand leverage you
markets if you understand leverage you
markets if you understand leverage you understand how London and Wall Street
understand how London and Wall Street
understand how London and Wall Street work right say you get a mortgage
work right say you get a mortgage
work right say you get a mortgage 380,000 that means you have wealth we
380,000 that means you have wealth we
380,000 that means you have wealth we call equity of 20 in the house great you
call equity of 20 in the house great you
call equity of 20 in the house great you put down an eighty percent that’s your
put down an eighty percent that’s your
put down an eighty percent that’s your loan-to-value ratio you have an 80%
loan-to-value ratio you have an 80%
loan-to-value ratio you have an 80% mortgage on the house that’s pretty good
mortgage on the house that’s pretty good
mortgage on the house that’s pretty good right suppose the house goes up by five
right suppose the house goes up by five
right suppose the house goes up by five percent in value because houses
percent in value because houses
percent in value because houses fluctuate right and it goes up to 420
fluctuate right and it goes up to 420
fluctuate right and it goes up to 420 your equity has now increased by one
your equity has now increased by one
your equity has now increased by one hundred percent from twenty to forty
hundred percent from twenty to forty
hundred percent from twenty to forty thousand right now you might say well
thousand right now you might say well
thousand right now you might say well what’s that good that this is about
what’s that good that this is about
what’s that good that this is about upward social mobility right people who
upward social mobility right people who
upward social mobility right people who own houses prime private home ownership
own houses prime private home ownership
own houses prime private home ownership in the United places like the United
in the United places like the United
in the United places like the United Kingdom and the United States are
Kingdom and the United States are
Kingdom and the United States are important for household net worth people
important for household net worth people
important for household net worth people that own houses have more net worth than
that own houses have more net worth than
that own houses have more net worth than people that don’t own houses that’s just
people that don’t own houses that’s just
people that don’t own houses that’s just a fact of life I wish it were different
a fact of life I wish it were different
a fact of life I wish it were different but we have to deal with the way society
but we have to deal with the way society
but we have to deal with the way society is right so let’s suppose instead the
is right so let’s suppose instead the
is right so let’s suppose instead the house price went down to 380 that’s down
house price went down to 380 that’s down
house price went down to 380 that’s down by five percent you lost all of your
by five percent you lost all of your
by five percent you lost all of your equity in the house right suppose it
equity in the house right suppose it
equity in the house right suppose it went down by ten percent you are now
went down by ten percent you are now
went down by ten percent you are now under water right now this this what
under water right now this this what
under water right now this this what that means is that you’ve losing money
that means is that you’ve losing money
that means is that you’ve losing money right so this is the miracle of lemon
right so this is the miracle of lemon
right so this is the miracle of lemon the danger of leverage leverage is
the danger of leverage leverage is
the danger of leverage leverage is wonderful on the upside it’s terrible on
wonderful on the upside it’s terrible on
wonderful on the upside it’s terrible on the downside right now let me go through
the downside right now let me go through
the downside right now let me go through some case studies with you about that I
some case studies with you about that I
some case studies with you about that I think you might find interesting about
think you might find interesting about
think you might find interesting about debt what I want to talk about tets law
debt what I want to talk about tets law
debt what I want to talk about tets law versus education credit management
versus education credit management
versus education credit management corporation this was a case in the
corporation this was a case in the
corporation this was a case in the United States from someone in his I
United States from someone in his I
United States from someone in his I think mid-50s marked Heslov who owed
think mid-50s marked Heslov who owed
think mid-50s marked Heslov who owed about two hundred and sixty thousand
about two hundred and sixty thousand
about two hundred and sixty thousand dollars worth of student loan debt and
dollars worth of student loan debt and
dollars worth of student loan debt and he was in his late 50s right he brought
he was in his late 50s right he brought
he was in his late 50s right he brought a case a bankruptcy went bankrupt he
a case a bankruptcy went bankrupt he
a case a bankruptcy went bankrupt he went into personal bankruptcy and he
went into personal bankruptcy and he
went into personal bankruptcy and he tried to get this
tried to get this
tried to get this debt discharged right but US law says
debt discharged right but US law says
debt discharged right but US law says that you cannot discharge or get relief
that you cannot discharge or get relief
that you cannot discharge or get relief from educational debt unless you can
from educational debt unless you can
from educational debt unless you can prove undue hardship he couldn’t prove
prove undue hardship he couldn’t prove
prove undue hardship he couldn’t prove it even though he was unemployed and
it even though he was unemployed and
it even though he was unemployed and living with his 85 year old mother on
living with his 85 year old mother on
living with his 85 year old mother on her pension you cannot prove undue
her pension you cannot prove undue
her pension you cannot prove undue hardship this is a problem with how debt
hardship this is a problem with how debt
hardship this is a problem with how debt can impair your life chances right
can impair your life chances right
can impair your life chances right there’s some other examples we can we
there’s some other examples we can we
there’s some other examples we can we can uncover for example from Spain
can uncover for example from Spain
can uncover for example from Spain during the last financial crisis Spain
during the last financial crisis Spain
during the last financial crisis Spain had a particularly rigid debt system
had a particularly rigid debt system
had a particularly rigid debt system where you are not discharged from
where you are not discharged from
where you are not discharged from mortgages even if you stop paying on
mortgages even if you stop paying on
mortgages even if you stop paying on them and went into bankruptcy or
them and went into bankruptcy or
them and went into bankruptcy or insolvency people paying debts for life
insolvency people paying debts for life
insolvency people paying debts for life look what happened to greece greece is
look what happened to greece greece is
look what happened to greece greece is another great example employment
another great example employment
another great example employment skyrocketing homelessness well there was
skyrocketing homelessness well there was
skyrocketing homelessness well there was one baby manager of a big chain of
one baby manager of a big chain of
one baby manager of a big chain of bakery said in Spain there will be no
bakery said in Spain there will be no
bakery said in Spain there will be no more consumers only Biggers right
more consumers only Biggers right
more consumers only Biggers right serious problems right so that can be
serious problems right so that can be
serious problems right so that can be good or it can be really bad now in each
good or it can be really bad now in each
good or it can be really bad now in each of those examples i’m giving you example
of those examples i’m giving you example
of those examples i’m giving you example of marquette sloth the spanish example
of marquette sloth the spanish example
of marquette sloth the spanish example manalo Marvin was his name who says I
manalo Marvin was his name who says I
manalo Marvin was his name who says I will never own a call even a car for the
will never own a call even a car for the
will never own a call even a car for the rest of my life because I owe the bank
rest of my life because I owe the bank
rest of my life because I owe the bank by Morgan trains a dog groomer in Spain
by Morgan trains a dog groomer in Spain
by Morgan trains a dog groomer in Spain the example from Greece I’m debt can
the example from Greece I’m debt can
the example from Greece I’m debt can have devastating consequences for us
have devastating consequences for us
have devastating consequences for us it’s an important resource in society to
it’s an important resource in society to
it’s an important resource in society to make us better off or it could make us
make us better off or it could make us
make us better off or it could make us worse off so we need to get it right
worse off so we need to get it right
worse off so we need to get it right right now how many of you think we
right now how many of you think we
right now how many of you think we talked about choice being important how
talked about choice being important how
talked about choice being important how many of you think you actually make
many of you think you actually make
many of you think you actually make choices in life actually you make very
choices in life actually you make very
choices in life actually you make very very few things you actually do in life
very few things you actually do in life
very few things you actually do in life have to do with your choices life is a
have to do with your choices life is a
have to do with your choices life is a series of water ease it’s a bunch of
series of water ease it’s a bunch of
series of water ease it’s a bunch of lotteries except it’s not like your
lotteries except it’s not like your
lotteries except it’s not like your usual lottery because you have no choice
usual lottery because you have no choice
usual lottery because you have no choice but to play all right you can’t stop
but to play all right you can’t stop
but to play all right you can’t stop playing the life lottery I love this
playing the life lottery I love this
playing the life lottery I love this quote from Barry Switzer use of
quote from Barry Switzer use of
quote from Barry Switzer use of former University of Oklahoma football
former University of Oklahoma football
former University of Oklahoma football coach and Dallas Coble Cowboys football
coach and Dallas Coble Cowboys football
coach and Dallas Coble Cowboys football coach he said some people are born on
coach he said some people are born on
coach he said some people are born on third base and go through life thinking
third base and go through life thinking
third base and go through life thinking they hit a triple this has been applied
they hit a triple this has been applied
they hit a triple this has been applied to certain people who won presidential
to certain people who won presidential
to certain people who won presidential elections in the United States with some
elections in the United States with some
elections in the United States with some frequency so think about that the birth
frequency so think about that the birth
frequency so think about that the birth lottery where you were born is really
lottery where you were born is really
lottery where you were born is really important about half the variance in
important about half the variance in
important about half the variance in incomes that you earn depend on where
incomes that you earn depend on where
incomes that you earn depend on where you were born which country are born in
you were born which country are born in
you were born which country are born in and the income distribution in that
and the income distribution in that
and the income distribution in that country the parental net worth lottery
country the parental net worth lottery
country the parental net worth lottery actually there is a substantial
actually there is a substantial
actually there is a substantial correlation but between how much you
correlation but between how much you
correlation but between how much you will earn in your life and how much your
will earn in your life and how much your
will earn in your life and how much your parents your parents are it’s about the
parents your parents are it’s about the
parents your parents are it’s about the same correlation there is for height
same correlation there is for height
same correlation there is for height right the education lottery there’s lots
right the education lottery there’s lots
right the education lottery there’s lots of great data on education right for
of great data on education right for
of great data on education right for example in the United States there’s
example in the United States there’s
example in the United States there’s data that shows but students in the top
data that shows but students in the top
data that shows but students in the top I think five or one percent of the
I think five or one percent of the
I think five or one percent of the income bracket are 77 times more likely
income bracket are 77 times more likely
income bracket are 77 times more likely to get into an Ivy League school then
to get into an Ivy League school then
to get into an Ivy League school then kids from the bottom quintile there’s
kids from the bottom quintile there’s
kids from the bottom quintile there’s data to show that students with highest
data to show that students with highest
data to show that students with highest lower standardized test scores who come
lower standardized test scores who come
lower standardized test scores who come from higher net worth families have a
from higher net worth families have a
from higher net worth families have a greater chance of attending and
greater chance of attending and
greater chance of attending and graduating from universities than
graduating from universities than
graduating from universities than students with higher standardized test
students with higher standardized test
students with higher standardized test scores so in a way kind of merit is the
scores so in a way kind of merit is the
scores so in a way kind of merit is the kind of Mythology isn’t you know so lots
kind of Mythology isn’t you know so lots
kind of Mythology isn’t you know so lots of data on this illusion of choice so we
of data on this illusion of choice so we
of data on this illusion of choice so we have to be careful when we talk about
have to be careful when we talk about
have to be careful when we talk about choice we know for example we use this
choice we know for example we use this
choice we know for example we use this sort of data when we talk about I don’t
sort of data when we talk about I don’t
sort of data when we talk about I don’t have time to go over it but you can look
have time to go over it but you can look
have time to go over it but you can look at the Acorn data we get this data when
at the Acorn data we get this data when
at the Acorn data we get this data when we look at university admissions data
we look at university admissions data
we look at university admissions data we’re always interested in you know some
we’re always interested in you know some
we’re always interested in you know some of the cata me we can classify zip code
of the cata me we can classify zip code
of the cata me we can classify zip code postcodes sorry postcodes by this data
postcodes sorry postcodes by this data
postcodes sorry postcodes by this data right we can actually tell you where
right we can actually tell you where
right we can actually tell you where people live who are struggling family
people live who are struggling family
people live who are struggling family difficult circumstances what the data
difficult circumstances what the data
difficult circumstances what the data looks like by postcode there is a
looks like by postcode there is a
looks like by postcode there is a postcode lottery now I’m not running out
postcode lottery now I’m not running out
postcode lottery now I’m not running out of time so so what on what I want to get
of time so so what on what I want to get
of time so so what on what I want to get at is really to understand how this
at is really to understand how this
at is really to understand how this illusion of choice exists so how do we
illusion of choice exists so how do we
illusion of choice exists so how do we want to govern debt so I argue that we
want to govern debt so I argue that we
want to govern debt so I argue that we need to look at debt through another
need to look at debt through another
need to look at debt through another lens other than financial stability we
lens other than financial stability we
lens other than financial stability we need to look at debt through the
need to look at debt through the
need to look at debt through the standpoint of we call luck
standpoint of we call luck
standpoint of we call luck egalitarianism right there this is a
egalitarianism right there this is a
egalitarianism right there this is a theory that was very well developed in
theory that was very well developed in
theory that was very well developed in moral philosophy it comes from a paper
moral philosophy it comes from a paper
moral philosophy it comes from a paper by a very famous philosopher named
by a very famous philosopher named
by a very famous philosopher named Ronald Dworkin called a quality of
Ronald Dworkin called a quality of
Ronald Dworkin called a quality of resources we want to look at choice and
resources we want to look at choice and
resources we want to look at choice and we’ll look also at circumstances and we
we’ll look also at circumstances and we
we’ll look also at circumstances and we talked about the distinction in that
talked about the distinction in that
talked about the distinction in that literature between brute luck an option
literature between brute luck an option
literature between brute luck an option luck option luck is about taking a
luck option luck is about taking a
luck option luck is about taking a gamble brute luck is about just whatever
gamble brute luck is about just whatever
gamble brute luck is about just whatever happens to you that you have no control
happens to you that you have no control
happens to you that you have no control over right now I went through the
over right now I went through the
over right now I went through the illusion of choice material to just tell
illusion of choice material to just tell
illusion of choice material to just tell you that much of what we choose depends
you that much of what we choose depends
you that much of what we choose depends on our circumstances right so we don’t
on our circumstances right so we don’t
on our circumstances right so we don’t want the allocation of an important
want the allocation of an important
want the allocation of an important resource like access to credit to be
resource like access to credit to be
resource like access to credit to be subject to our bad brute luck so if you
subject to our bad brute luck so if you
subject to our bad brute luck so if you look at the structure of debt in society
look at the structure of debt in society
look at the structure of debt in society you want to ask the question does it
you want to ask the question does it
you want to ask the question does it comply with these requirements right so
comply with these requirements right so
comply with these requirements right so here’s an example look at your student
here’s an example look at your student
here’s an example look at your student debt right right now debt is student
debt right right now debt is student
debt right right now debt is student debt for exhibit is a good example is
debt for exhibit is a good example is
debt for exhibit is a good example is based on there are certain provisions
based on there are certain provisions
based on there are certain provisions with soften that debt which make it more
with soften that debt which make it more
with soften that debt which make it more suitable from the standpoint of
suitable from the standpoint of
suitable from the standpoint of egalitarian justice like income
egalitarian justice like income
egalitarian justice like income contingent repayment plans and fixed
contingent repayment plans and fixed
contingent repayment plans and fixed durations for the periods of loans Obama
durations for the periods of loans Obama
durations for the periods of loans Obama did the same thing through an executive
did the same thing through an executive
did the same thing through an executive order yes an executive order in the
order yes an executive order in the
order yes an executive order in the United States right that’s often the
United States right that’s often the
United States right that’s often the loan otherwise the debt is too rigid and
loan otherwise the debt is too rigid and
loan otherwise the debt is too rigid and it’s unjust
it’s unjust
it’s unjust Fremen it from a gala terry standpoint
Fremen it from a gala terry standpoint
Fremen it from a gala terry standpoint and so that is essentially the subject
and so that is essentially the subject
and so that is essentially the subject of Maya will skip some of the other
of Maya will skip some of the other
of Maya will skip some of the other finer details given the time we have but
finer details given the time we have but
finer details given the time we have but the point I’m trying to make here is
the point I’m trying to make here is
the point I’m trying to make here is that we need to balance debt in the
that we need to balance debt in the
that we need to balance debt in the economy from the standpoint of justice
economy from the standpoint of justice
economy from the standpoint of justice not only from the standpoint of
not only from the standpoint of
not only from the standpoint of economics or efficiency because debt is
economics or efficiency because debt is
economics or efficiency because debt is a resource in society and that resource
a resource in society and that resource
a resource in society and that resource has to be distributed fairly so thanks
has to be distributed fairly so thanks
has to be distributed fairly so thanks very much
very much
very much [Applause]
”
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