Investor Michael Burry is warning that student debt forgiveness could have “terrible consequences.” Burry gained fame for betting against phony mortgage insurance in what became known as before the 2008 market crash.
In a series of , Burry said that student loans stemmed from and forgiving them would .
What’s Going on With Student Loan Forgiveness?
President Joe Biden’s administration has offered to in student loans, after a long Covid-19-based moratorium on payments. However, the plan is being held up by legal action.
, the Supreme Court heard a case that could shut down President Joe Biden’s forgiveness plan. The court is against the administration.
That could boost companies like SoFi (NASDAQ:SOFI). SoFi’s initial business model was built on refinancing student loans.
More 抖阴最新版 Michael Burry
Burry has a net worth of about . He gained renewed fame after joining Twitter in 2020 and .
Recently, he has and predicted . He has invested in such industries as and .
What Happens Next?
The whole question of loan forgiveness has become intensely political. Republicans are and Democrats are after many of those loans were forgiven by the previous administration.
Companies like SoFi are left in the middle. Even if the Supreme Court rules against forgiveness, they will still have a lot of bad debt and angry debtors.
On the date of publication, Dana Blankenhorn held a long position in SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
