How $300 Can Change the U.S. Economy

Three years ago, we hit the “pause” button on student-loan repayments. But earlier this week, the “play” button got pressed again. Now, 44 million Americans need to start paying off their debts. Think this doesn’t impact you? Think again… [mbd-thumbnail] CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »» [/mbd-thumbnail] [mbd-video][/mbd-video] [ad] […] You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Daily] How $300 Can Change the U.S. Economy October 03, 2023 Three years ago, we hit the “pause” button on student-loan repayments. But earlier this week, the “play” button got pressed again. Now, 44 million Americans need to start paying off their debts. Think this doesn’t impact you? Think again… [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( ADVERTISEMENT This guy Is in for a BIG surprise… and so are YOU! The guy behind me doesn’t realize that the money he’s pulling out of the bank is radically different from the money he pulled out last month. That’s because the Fed recently implemented the most radical upgrade to the dollar in decades. And most people don’t even know it happened! But with $73 trillion now up for grabs, the opportunity for investors today is enormous. [Click here for all the details about this radical new dollar upgrade… including my #1 moonshot pick of the year](. For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. How $300 Can Change the U.S. Economy After a three-year hiatus, student loan repayments are back. It doesn’t matter if you just graduated this year, or if you haven’t seen the inside of a classroom in decades. The resumption of student-loan debt is an opportunity for any investor to jumpstart their investment portfolio. Let me explain… A Unique Situation Nearly 44 million Americans have student-loan debt. And after being able to push this debt to the financial back burner for the past few years, student loans are once again front and center. Collectively, these borrowers hold more than $1.7 trillion worth of debt. And with payments resuming, an estimated $9 billion a month — more than $100 billion a year — is expected to go toward alleviating this debt. The thing is, this situation is unique. Here’s why: Often, debt that needs to be repaid is productive for the economy. For example, you might pay down debt in the form of monthly car payments. But while you no longer have that money to spend, it flows into the pockets of the car dealer and auto maker. In other words, the money stays active in the economy. But student-loan debt is different. Money paid toward this debt doesn’t go to a specific business or sector. It essentially disappears from the economy. A Big Deal? U.S. consumer spending is around $15 trillion a year. And as you learned, about $100 billion a year will begin disappearing to go toward student-loan debt. At first blush, $100 billion against $15 trillion may not sound like much — it’s about 0.6% of total consumer spending, in fact. But what we need to focus on is the ripple effect, specifically the one that’ll happen on the individual-borrower level. Let me show you… Beth is in Trouble Consider a 23-year-old working professional named “Beth.” Beth graduated from college a couple of years ago. And along with a degree, she left with around $25,000 in student-loan debt. For the past few years, Beth hasn’t paid much attention to this debt. She hasn’t had to. The $300 minimum monthly payments were on pause, freeing her up to spend that money on things like rent, travel, and clothes. Now, though, Beth is coming to grips with the new reality. That $300 a month will have to start going toward her student loans. That means she’ll have $300 less in her monthly budget. Keep in mind, Beth’s just one of 44 million Americans in a similar situation. And that’s what will undoubtedly create a set of winners and losers… Your Investment Opportunity With millions of borrowers like Beth now grappling with less discretionary spending, America’s economy is about to experience a dramatic change. Remember that $100 billion annual figure? Against $15 trillion in spending, that’s a drop in the bucket. But keep in mind that this $100 billion that used to come from those with student loans — these are primarily younger, working professionals in their 20s and 30s — was being spent in a few key sectors… And very soon, these sectors could be in trouble. For example: Retail — When student loans were paused, Beth could take that $300 and splurge on a trip to Target or H&M. Not anymore — her shopping habits are about to take a hit. Leisure & Hospitality — $300 can cover a lot of dining out or fun nights at a bar. But now Beth and her friends will likely be forced to spend their Friday nights watching Netflix and cooking at home. Housing — Between historically-high mortgage rates, low supply, and rising home prices, it was already tough for young folks to afford a home. Now, without that bit of extra capital that could’ve gone toward a nest-egg to serve as a down payment, home ownership for people like Beth just got even tougher. These sectors are “losers” in what’s starting to unfold. But there’s one sector that’s sitting pretty… A Clear Winner I’m referring to the financial-services sector. To understand why, let’s focus again on Beth. Beth may have been using that $300 a month to spend on discretionary purchases like travel, clothes, and drinks. But what if that $300 was enabling her to afford groceries, utilities, or gas? How will she pay for those essentials now that she has to start making student-loan payments again? You guessed it: credit cards. People like Beth could quickly find themselves attached to their plastic, racking up credit-card debt. And if Beth already carries a balance — a balance that she’ll no longer be able to pay down now that student loans are in effect — this debt level could skyrocket. Credit-card companies are lining up to profit from this ensuing debt boom. And one of them is in position to deliver investors like you potential gains of 50%. Those details are for my Pro readers, though, so make sure you’re one of them. In the meantime, we’re in it to win it. Zatlin out. FOR MONEYBALL PRO READERS ONLY > [LEARN MORE]( < In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2023 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( | [Unsubscribe from this list]( | [Terms & Privacy]( RISK NOTICE: All investing comes with risk. 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