Line of Reasoning Gayanne Cherechyan, Adeline Sun, Anthony Bermudez, Joann Tran by GAYANNE CHERECHYAN https://padlet.com/gcherechy0001/admcx7mn303vlcq2 Make a copy of this padlet. Put the sentences in order with your group to create a line of reasoning. Screenshot and turn into schoology. en-us 2020-09-11 17:23:38 UTC 2020-09-12 01:58:34 UTC hello@padlet.com New information helps explain why consumers have been cautious in recent months, despite a better job market and cheaper gas. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687840 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687840 The usual explanation is that consumers are still paying down debt and building up savings — and will return to freer spending ways in due time. But a report this week from the Federal Reserve Bank of New York challenges that view. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687846 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687846 The report shows that outstanding household debt increased by one percent from the third to the fourth quarter of 2014, to a total of $11.8 trillion as of Dec. 31. Balances were up in all major borrowing categories, including mortgages, student loans, auto loans and credit cards. In two of those categories — student loans and auto loans — delinquency rates worsened. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687848 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687848 Researchers at the Fed zeroed in on student debt as a probable cause of weak spending. The data confirm what has been noted before: That student loan delinquencies and repayment problems appear to be reducing the ability of young adults to embark on “household formation,” a.k.a. getting married, starting a family and buying a house — all of which portend steady and rising spending. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687850 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687850 Worse, the Fed report found that the drag of student debt lasts longer than previously believed. Much of the public discussion about student loan defaults is based on analyses that look at loan performance over two and three years. The report found rising default rates in years four through nine. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687854 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687854 Another sobering finding is that many student borrowers who are current today are likely to have had serious payment problems in the past. That suggests enduring credit problems. The report found that only about 63 percent of borrowers appeared to have avoided delinquency and default altogether. gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687857 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687857 For the economy to thrive, young adults need ways to get an education without taking on ruinous debt. They need plentiful jobs that pay them enough to shoulder their debts. And when those jobs are not forthcoming — as has been the case for years now — they need relief and repayment plans, so that their problems today do not become lasting, economy-wide problems gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687860 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687860 Outstanding student loan balances now stand at nearly $1.2 trillion, an increase of $77 billion in the past year. They are a drag on spending now, and are likely to remain so for a long time to come gcherechy0001 https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687861 2020-09-11 17:23:38 UTC https://padlet.com/gcherechy0001/admcx7mn303vlcq2/wish/739687861