‘Big Short’ Michael Burry Predicts “Terrible Consequences” From Biden’s Student Loan Forgiveness

Rear view of group of university graduates in black gowns lines up for degree in university graduation ceremony. Concept education congratulation, student, successful to study.

“Let’s not forget that the student debt problem is built on a foundation of terrible major choices,” Burry tweeted on Tuesday.

“The rich rules over the poor, And the borrower is servant to the lender.” Proverbs 2:27

Burry’s comments come as the US Supreme Court considers Tuesday oral arguments over President Biden’s student loan forgiveness program, which was legally justified based on the pandemic. The program offered up to $20,000 of loan forgiveness per borrower – an initiative which has been put on hold while the high court debates the case, according to Politico.

During more than three hours of oral argument, conservative justices on the court repeatedly questioned whether the Education Department had the legal authority it claimed to discharge federal student loan debt to help borrowers recover economically from the national emergency spurred by Covid-19.

Chief Justice John Roberts emerged as one of the most hostile voices on the court towards the debt relief plan, repeatedly invoking its overall cost and raising questions about its fairness. -Politico

“We’re talking about half a trillion dollars and 43 million Americans,” said Roberts early into the arguments, who also slammed the Biden administration’s claim that the debt cancellation plan wasn’t much different than existing programs that forgive student debts in specific circumstances.

“Because there’s a provision to allow [a] waiver when your school closes…because of that Congress shouldn’t have been surprised when half a trillion dollars is wiped off the books?” asked Roberts, who added that the administration’s decision not to wait for Congress to craft debt-forgiveness legislation may have cut short debates Congress could have had over special treatment vs. people who have paid off their loans.

“Nobody’s telling the person who was trying to set up the lawn service business that he doesn’t have to pay his loan,” said Roberts. “He still does, even though his tax dollars are going to support the forgiveness of a loan for the college graduate who’s not going to make a lot more than him over the course of his lifetime.”

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