📚 Student-loan forgiveness cracks

…and Congress may ban itself from stock trading [Disclosures](   Room service > Zoom service [YinYang/E+ via Getty Images]   Last Week’s Market Moves   Dow Jones 34,738 (-1.00%) S&P 500 4,419 (-1.82%) Nasdaq 13,791 (-2.18%) Bitcoin $42,030 (+1.13%) Dow Jones 34,738 (-1.00%) S&P 500 4,419 (-1.82%) Nasdaq 13,791 (-2.18%) Bitcoin $42,030 (+1.13%) Hey Snackers, Nearly half of Americans [would give up]( a work holiday to have the Monday after the Super Bowl be declared its own holiday — instead, we have Valentine’s Day. We’re celebrating love today, but yesterday Los Angeles celebrated the Rams’s big Bowl win. Some highlights: Matthew Stafford’s game-winning TD pass to Cooper Kupp with 1:25 left on the clock, and the return of Dr. Evil in GM's EV [ad]( (iron pinkie included). Stocks fell for the week on news that inflation hit a four-decade high and growing Russia-Ukraine tension. On Friday the White House [said]( it believed Russia could invade Ukraine at any time. The unrest could spark a trade war. Also on Friday, the tech-heavy Nasdaq index lost nearly 3%. Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences [here](. Aloan The May 1 deadline for student-loan payments is weighing on Americans as Biden’s affordable-college promises crumble Mr. Loan-ly... President Biden campaigned on promises of student-loan forgiveness and free college — so far, they haven't panned out. Last week, first lady Jill Biden [admitted]( that her push for free community college is over (for now). The plan’s been scrapped from the massive “Build Back Better” spending bill that Dems are struggling to pass. Broad loan forgiveness could be next. - Biden has forgiven $15B worth of federal student loans for 675K borrowers — or [1%]( of the [$1.7T]( outstanding student debt owed by 40M+ Americans. Biden’s campaign promise was at least $10K in loan forgiveness for each borrower. - Biden has extended the pause on loan repayments — initially suspended by Trump in March 2020 — three times. Thanks to the pauses, 40M+ borrowers are saving [$5B/month](. - But payments are set to resume May 1 for federal loans, which make up 90% of total student debt. The price is not right... After a nearly two-year pause, Americans will have to start repaying $400/month, on average, in student loans, while inflation has hit a 40-year high. Rising wages have [not]( kept up with rising prices, and loans could make it even harder to pay the bills. For context: 12% of public-college grads still owe more than [$40K](. And nearly half of graduates of for-profit schools have defaulted. Meanwhile, [two-thirds]( of community-college grads leave with zero debt. THE TAKEAWAY Loan forgiveness isn’t the underlying problem… the cost of US colleges is. The average cost of a private college is $38K/year; for public colleges, it’s $23K for out-of-staters. Average tuition and fees have [nearly doubled]( since 2010. Broad loan cancellation would cost the US gov’t [$60B]( in interest alone, and require big tax hikes to recoup. Since college is so pricey, loans would have to be forgiven all over again in an unsustainable cycle. Last month, Education Secretary Miguel Cardona laid out plans to make college more affordable — but [didn’t mention]( broad forgiveness. Meanwhile, college enrollment keeps [sliding](. Zoom Out Stories we’re watching... Pelosi-Tok… House Speaker Nancy Pelosi and her VC husband are TikTok-[famous]( for beating the market with their stock trading, a practice she’s [defended]( to voters. There’s been growing criticism of lawmakers’ freedom to trade because they literally shape the law. Last year 55 lawmakers reportedly [failed]( to disclose their trades. Politico reported that members of Congress [sold]( travel stocks like [Royal Caribbean]( and bought pharma stocks like [Moderna]( in early 2020 while downplaying Covid. So last week Pelosi [OK’d]( a proposal to bar Congress from trading. The House is set to vote by November, but not all members support it. Not-so-value meal... From cereal and bacon to gas and cars, prices have soared at the fastest rate in 40 years. Inflation’s starting to dent corporate profits across industries: [Toyota]( saw earnings drop 20% last quarter on chip shortages. [Yum Brands]( (owner of KFC, Taco Bell, and Pizza Hut) said rising ingredient costs and wages hurt its bottom line. [Unilever]( (Ben & Jerry’s, Dove soap) is taking a hit on transportation costs. The Fed wants to rein in prices with at least three interest-rate hikes this year. Regardless, shipping giant [Maersk]( says supply shortages aren’t easing up anytime soon. Events Coming up this week... Rainy in the metaverse… Shares of tween-favorite gaming platform [Roblox]( (47M users) and chip maker [Nvidia]( soared last year as they invested in building out their meta-visions. But despite booming interest in an immersive internet of the future, many meta-focused stocks are now struggling. Nvidia and Roblox have sagged amid a broader tech slump, and [Meta’s]( stock is down 35% on [stalled]( user growth and profit-hitting metaverse investments. We’ll get a pixelated portrait of the metaverse industry when Roblox and Nvidia report Wednesday. Piña coladas & conference calls... Extended stays are taking the travel industry by storm as WFH turns into work from hotel. Last year, 37% of [Marriott’s]( room [sign-ups]( in the US and Canada were for extended-stay trips. Meanwhile, [Airbnb]( saw [half]( its customers book for at least seven days. Now real-estate developers like [Starwood]( are paying [billions]( to scoop up longer-stay hotel chains that create twice as much profit margin as regular hotels. We’ll see how the “bleisure” economy is faring when [Hilton]( [Hyatt]( Marriott, and Airbnb report this week. ICYMI Last week's highlights... - [Versace]( The DOJ seized a record $3.6B worth of [Bitcoin]( and arrested a millennial couple (feat. a “financial rapper”) in connection with the 2016 Bitfinex hack, as regulators crack down on crypto crimes. - [Burst]( A key pipeline that carries gas from Russia to Germany is at the center of escalating Russia-Ukraine tensions — but a trade war with Russia could hurt more than just Europe’s gas supply. - [Fees]( Discount airlines [Frontier]( and [Spirit]( agreed to a $6.6B merger that would create the fifth-largest US airline (#FrontSpirit). But Biden’s “big is bad” regulatory stance could keep the deal from taking off. What else we're Snackin' - [Icy]( Beijing used 800 Olympic-size pools’ worth of water for this year’s Winter Games (hint: not for swimming). Critics say artificial snow isn't sustainable. - [Oink]( Normally activist investors demand changes that boost profits. But Carl Icahn’s vegetarian daughter inspired him to push [McDonald’s]( to treat pigs better, which underscores the scope of activist influence. - [Heirs]( Trust funds are causing trouble. Half of all wealth passed down in the next 25 years will come from the richest 1.5% of families, which could worsen inequality. Inheritance-tax loopholes are playing a role. 🍪 Want to start Snacking daily? Sign up [here]( for our daily market newsletter. The Snacks Daily Podcast From Nicolas Cage to greasy potatoes… ConstitutionDAO was the org that tried and [failed]( to buy the Constitution. Now a new viral DAO is [going]( after fast food. [Tune in]( to hear why FriesDAO could kick off an era where blockchain-based communities buy coffee chains, films, and even pro sports teams. Snack Fact Of the Day [In 1986 Oprah Winfrey became the first Black American woman to host a nationally syndicated talk show]( This Week - Monday: Valentine’s Day. Earnings expected from: Advance Auto Parts and Avis Budget Group - Tuesday: Earnings expected from: Airbnb, Marriott, ViacomCBS, and Ecolab - Wednesday: Earnings expected from: Roblox, Nvidia, Cisco, Shopify, Kraft Heinz, and Hilton - Thursday: Weekly jobless claims. Earnings expected from: Walmart, Hyatt, Barclays, Dropbox, Planet Fitness, Shake Shack, and Fiverr - Friday: Earnings expected from: Deere & Company and DraftKings - The weekend: Beijing Winter Olympics closing ceremony on Sunday. Authors of this Snacks own: Bitcoin, and shares of Moderna, Shopify, and Walmart ID: 2037062 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk including the loss of principal and past performance does not guarantee future results. 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