☕ Bye, debt

Biden wipes out student loan debt... August 25, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Revela]( Good morning. Today is National Kiss and Make Up Day, so if you’ve written an angry email to us before…consider it water under the bridge. Now pop an Altoid and let’s get this over with. —Neal Freyman, Jamie Wilde, Matty Merritt MARKETS Nasdaq 12,431.53 +0.41% S&P 4,140.77 +0.29% Dow 32,969.23 +0.18% 10-Year 3.110% +6.1 bps Bitcoin $21,721.45 +0.90% Peloton $13.48 +20.36% *Stock data as of market close, cryptocurrency data as of 10:00pm ET. [Here's what these numbers mean.]( - Markets: Investors are [playing it cautious]( ahead of Fed Chair Jerome Powell’s speech in Wyoming on Friday. For instance, in the past two days the S&P has not gained or lost more than 1%—only the fourth time this year that’s happened. So why did Peloton shares pop? The fitness company said it would be selling its products on Amazon, marking the end of its strict direct-to-consumer distribution model. GOVERNMENT [Biden vaporizes student loan debt]( [South Park character saying ](South Park/Paramount Global via Giphy Millions of Americans are waking up this morning feeling like the weight of one thousand Jupiters has been lifted off their shoulders. Yesterday, President Biden announced that the federal government would [forgive $10,000 in student debt]( for borrowers making under $125,000 a year, and up to $20,000 for Pell Grant recipients. Biden also extended the moratorium on loan repayments through the end of 2022. That’s the seventh (and, Biden says, final) time the freeze will be pushed out since it was first introduced in March 2020. 45 million Americans have to settle up [$1.6 trillion]( for student loans—an amount greater than any other consumer debt besides mortgages, according to the NYT. Relieving some of that burden was one of Biden’s campaign pledges, but in fulfilling it he had to weigh lots of competing opinions. - On one side, progressive Democrats and civil rights groups pressed for at least $50,000 in debt cancellation. “$10,000 alone is meager, to say the least—it won’t address the magnitude of the problem,” NAACP President Derrick Johnson [told the Washington Post](. - But centrist Democrats—and Republicans—warned that canceling debt could stoke inflation and is not the best use of government funds. “Every dollar spent on student loan relief is a dollar that could have gone to support those who don’t get the opportunity to go to college,” former Treasury Secretary Larry Summers, a Democrat, [tweeted](. So what is the financial impact? An independent study from the Penn Wharton Budget Model found that wiping out $10,000 for borrowers making Biden argued that by installing the income cap, the relief would go to the people who need it the most. His administration says that 90% of the forgiveness would hit households making $75k or less. Looking ahead…Biden’s student debt wipeout will probably face challenges in court, so don’t expect your balance to go poof right away.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Biden%20vaporizes%20student%20loan%20debt%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F08%2F24%2Fbiden-announces-usd10-000-in-student-loan-forgiveness%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH REVELA [The newest discovery for your fullest hair]( [Revela]( You can’t expect better results from the same old ingredients—which is why [Revela]( set out on a journey to solve hair-loss problems using completely new molecules. Through an innovative approach, Revela discovered ProCelinyl™: the world’s first and only ingredient discovered by AI for thinning hair. Plus, this incredible molecule has proven to show results up to 4x faster than traditional solutions. After a 6-week clinical trial, 82% saw reduced hair shedding and 97% saw thicker, fuller, or healthier hair. Whoa. Unlock your hair’s fullest potential. [Use code MORNINGBREW15 for 15% off your order](. �  �  �  WORLD [Tour de headlines](#) [Cars in California]Justin Sullivan/Getty Images California is ditching gas. The state will announce today that it’ll [ban the sale]( of new cars that use gasoline by 2035, the NYT reports. It’s a landmark moment in the fight against climate change, given that California’s economy is so big it would rank as the fifth largest in the world if it were a country. Plus, California is typically a trendsetter when it comes to auto emissions rules—more than 12 states could move to ban new gas-powered cars shortly after CA’s announcement. More abortion trigger laws go into effect. Laws restricting abortion access are [set to begin]( in Texas, Tennessee, and Idaho today, though last night a federal judge blocked a section of Idaho’s law that would’ve blocked doctors from performing abortions in the case of medical emergencies. The new abortion laws arrive as Democrats have had success in campaigning on reproductive rights, such as a key special election win in upstate New York on Tuesday. Twitter is dealing with the fallout of a whistleblower report. Peiter “Mudge” Zatko, Twitter’s former security chief who accused Twitter execs of pretty much failing at all things user privacy, will [testify]( before the Senate Judiciary Committee on Sept. 13 about his concerns. Over at Twitter HQ, CEO Parag Agrawal told employees that the allegations were “foundationally, technically, and historically [inaccurate](.” And in a filing Wednesday, Twitter revealed a letter it sent to the SEC that reasserted that bots make up less than 5% of its users. HEALTH [Alcoholism gets sent on a long trip]( [A doctor's office](GIF: Dianna “Mick” McDougall, Sources: Getty Images A new study shows how psychedelics, in conjunction with talk therapy, have the potential to treat alcohol addictions. It’s the [latest evidence]( that hallucinogenic drugs—particularly magic mushroom’s key ingredient, psilocybin—have medical uses. How NYU Langone Health’s study went down: 93 heavy drinkers attended 12 psychotherapy sessions over the course of eight months. At two sessions, they received either psilocybin or an antihistamine placebo. By the end of the study... - More than 80% of those in the psychedelic group drank heavily far less often, compared to just over half of the placebo group. - Perhaps even more promising, half of the hallucinogen group was full-on sober, compared to a quarter of the control group. Why the treatment seems to work isn’t certain, but researchers think psilocybin may rewire parts of the brain associated with addictive habits. NYU plans to start another, larger trial that will take three years—and hopes to one day get the FDA’s approval to use the drug for treating addiction. Big picture: Psilocybin is also being used by more young folks outside the doctor’s office. An NIH report dropped on Monday showed that use of hallucinogens jumped to a [record high]( among young adults in 2021, with 8% of respondents aged 19–30 reporting they’d used hallucinogens (including LSD and psilocybin) in the past year. In 2011, just 3% did.—JW �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Alcoholism%20gets%20sent%20on%20a%20long%20trip%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F08%2F24%2Fpsychedelic-drugs-treat-alcoholism-in-new-study%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A ECONOMY [The middle class right now]( [Marriage Story meme. Man saying "Every day I wake up I lose money" and then punching the wall.](Marriage Story/Netflix, Uber Bautista When Nordstrom and Macy’s cut their annual earnings forecasts on Tuesday, they surprised everyone by not blaming their surplus of outdated Sperrys. The real problem, they said, was that middle-class customers have stopped showing up. It is true: While lower-income households are still being hit hard by inflation, middle-class consumers have become the most [price-sensitive group]( in recent months, according to Morning Consult. - In July, 7% fewer households making between $50,000–$99,000 annually said they had money left over after monthly expenses than in July 2021. - That’s a bigger drop than lower income (6%) and higher income (5%) households reported. As inflation crunches the middle class, the wealthy are spending like a 13-year-old with birthday money and a ride to Claire’s. Macy’s said sales increased last quarter at its luxury brands like Bloomingdale’s and Blue Mercury. And Luxury carmaker Bugatti sold out of all 99 models of its new $5 million car. Looking ahead…retailers are nervous about the holidays. Chain stores, unsure of how much inventory they’ll need, are weighing 40-year-high inflation with consumers’ craving for a non-Covid-interrupted celebration.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=The%20middle%20class%20right%20now%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2Fmiddle-income-households-most-price-sensitive-group%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A GRAB BAG [Key performance indicators](#) [Calendar showing electric bill is due]Francis Scialabba Stat: Electricity prices are soaring, and many Americans are struggling to make their payments. One in six homes in the US, or roughly 20 million households, have [fallen behind]( on utility bills, according to the National Energy Assistance Directors Association. In total, US households are on the hook for $16 billion in late energy payments, which is double the amount pre-Covid. Quote: “This heat wave overtakes anything seen previously worldwide.” It was fun while it lasted, precedented times. The heat wave in China, which has been going on for 73 days and counting, is [unlike anything]( the globe has experienced before, climate historian Maximiliano Herrera tweeted. Almost 530,000 square miles in China, an area about the size of Texas, Colorado, and California combined, experienced temperatures [above 104°F](, per Axios. Read: My boss wants me back in the office full time. Can I push back? ([The Cut]() BREW'S BETS There goes $7.8 million: Watch a 129-foot superyacht [capsize]( into the Ionian Sea. All passengers and crew members were rescued. Pregame Apple’s event: This website allows you to [design the next iPhone](. Robots that learn from humans: [Ally Robotics]( creates AI-powered robotic arms that learn by watching humans work. It’s opening up a $114b market opportunity to automate businesses, fill labor gaps, and boost profits. [Invest here](.* Fab collab: Bestselling sneaker brand Cariuma teamed up with Peanuts to create 7 limited-edition designs. And don’t miss the sustainable and stylish OCA Low Canvas, just restocked in 15+ colors. [Save 20% with code MBAUG20](.* *This is sponsored advertising content. WHAT ELSE IS BREWING - [The US]( pledged almost $3 billion in military aid to Ukraine on Ukraine’s Independence Day. Meanwhile, 22 people were killed in a Russian missile strike on a train station, Ukrainian President Zelensky said. - [Vanessa Bryant](, Kobe Bryant’s widow, was awarded $16 million in damages over leaked photos of the helicopter crash site where her husband and their daughter died. - [Apple]( sent invites to a Sept. 7 hardware event where it’s expected to reveal the iPhone 14 and new Apple Watches. We’re hoping the tagline “Far out” means it’ll be hippie-themed. - [Kim and Kourtney Kardashian](, Kevin Hart, and Sylvester Stallone are among the A-list SoCal residents who’ve been warned at least four times about exceeding their water allotment in the parched region. GAMES [The puzzle section](#) Brew Mini: Love your pets more than your kids? [Today’s puzzle is for you](. Three headlines and a lie Three of these headlines are real and one is faker than “quiet quitting.” Can you guess the odd one out? - Report: Ethiopian Airlines pilots fell asleep during flight and [missed]( landing - Wind turbine blades could be [recycled]( into gummy bears, scientists say - Hungary’s top forecasters were [fired]( for incorrect rain prediction that caused Europe’s biggest firework show to be canceled - If your landlord won’t respond to your maintenance questions, you can [hire]( this woman to “act wild” at their office If you love Three Headlines and a Lie, [play along]( on The Refresh from Insider and dive deeper into these weird headlines. GIVEAWAY [Your Golden Ticket to a free MacBook]( [Your Golden Ticket to a free MacBook]( We took a stab at Michael Scott’s million-dollar golden ticket idea. And while we don’t sell paper, we do sell the best mouse pads ever. [Get yours now]( to lock in a chance for a FREE MacBook laptop. Terms and conditions apply. [Finding work–life balance when your career becomes all-consuming]( [Finding work–life balance when your career becomes all-consuming]( If you derive your identity from your work, what happens when that work goes away? Is it a bad thing to love your work, or is that something to strive for? [Watch]( or [listen]( to the latest Money with Katie episode for more. Check out more from the Brew: Good news: There’s still time to get your budget back on track even after a summer of loose spending. [Shop the Money with Katie Wealth Planner now](, and you can thank your new wealth-building best friend later. 🗯 At our marketing summit, The Brief, join pros from McDonald’s, Vans, General Mills, and more to hear how they’re tackling the industry’s biggest challenges. [Register today to save some green](. ANSWER We made up the landlord one, though that would be an excellent service. � � � � � Written by [Neal Freyman](, [Matty Merritt](, and [Jamie Wilde]( Was this email forwarded to you? 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