Friday, April 8, 2011

The purpose of this blog

While associated with the other scam bloggers, SubprimeJD has a broader scope than just the law school scam. As a law graduate and young attorney I have personal experience and knowledge of how the law schools are ripping of their students. Maybe pre crisis they knew they were fudging the data but figured that the majority of their graduates did alright. Post crisis, with the economy going to shit, with law firms laying off thousands of associates, coupled with absurd increases in tuition, without a doubt these schools now know that they are operating a scam for a good portion of their graduates. Throw in the scam blogs, mainstream media articles, ABA statements and the most recent letter from Senator Boxer, the schools are now on at least constructive notice, if not actual notice, that they are operating a scam that is harming thousands of graduates every year.

As a decent person, it is my duty to warn potential law school applicants about the dangers and risks associated with attending law school at the present time. Throw in the student loans and it's a recipe for financial and emotional ruin. For some insidious reason, peonage and slavery have returned to America, this time in the form of student loans. It matters not if it takes you 3 years after graduating to find decent employment. The student loan will grow and grow and can never be defaulted on. If you find the practice of law disgusting and just can't bear life in the field, it matters not, the loan will follow you. If you borrowed over $100,000.00 your situation can turn precarious. With shot credit, you will be charged more interest for all financed purchases. Be prepared to save as much money as possible while paying rent and the loans in order to purchase a car without getting raped with 20% on a car loan. Prepare for a life of less while you find others that don't have a college degree earning the same if not more money than you without having to pay any student loans off. Prepare to be infuriated. This is not time to go to law school, especially if you have to finance your attendance with student loans.

In addition to scam blogging as my regular readers know I also discuss markets, with an emphasis on commodities, debt, and precious metals. This is an extremely important time in American economic history. For the first time perhaps since the civil war we face a grave crisis threatening our nation. For the first time in our history, we face bankruptcy. This is why I post charts about silver, gold, the dollar, crude oil and the debt levels. I'm no economic expert, I'm a personal injury lawyer. I studied political science and got a law degree taking courses in fucking evidence, civil procedure, family law, et al. However, I have spent the last 4 years reading about economics like a mad man. Since I realized something was very wrong with our economic system, I made it a mission to learn as much as I could. Many people will discredit the things I say because I'm not an authorized voice to speak on such matters. I have no masters in economics, I'm no professor at some prestigious university. However, I specifically recall reading article after article from University professors proclaiming in the summer of 2008 that the US would avoid a recession while economic disaster was weeks away. I called bullshit and said the stock market would crash to 6500 with the financial system imploding on itself. Lo and behold I was dead on. So either I'm a genious and these professors/economists are all captured by groupthink, or I got lucky time and time again and they are lying to us. Believe whatever you want, just don't forget my silver and gold calls.

Nevertheless, as I stated before, I'm no expert in this area but I can say with some confidence that I have a good idea of what's going on. I learn from some of the brightest minds out there that don't get much media exposure and willingly share the wealth on this blog. I have had several readers catch on to the ponzi (our cute little reference to the global economic system) and have taken action to prepare for the coming troubles. Perhaps we are wrong to prepare. Oh well. I'd rather be stuck with supplies (water, food, arms, medicine) and precious metals then be caught unprepared in the event of economic dislocations as a result of a failing monetary system. I work nearly everyday and save as much as I can. I have the luxury of living at home even though I can move out tomorrow. I'd rather give up some privacy and independence in exchange for being able to save as much as possible for as long as I can. If you this option I suggest you also use it.

This is the message of this blog. In as simple words as possible our economic system is in trouble and instead of the problems being cyclical this time they are structural in nature. In addition, for the first time in modern economic history, we have an energy crisis even though oil producers are pumping at the max. Our debt backed high powered interest growing money is hitting the wall of limits to growth due to energy issues. We also squandered our wealth as a nation by going into obscene debt to the point where a central bank has to print trillions of dollars just to keep the show going. The list goes on and on. I can't change the future but I can prepare MY future. A nice quote I heard the other day, "no one plans on failing, but people do fail to plan."

Just trying to get as many people on board as fast as possible before its too late. I will continue to provide as many FACTS as possible so you all can make your own independent judgments. The media is doing its job serving their corporate masters. I'm doing my job by giving out the warning. Thanks for all the support.


PS Good job Nando with the ABA panel! That was some good exposure. Keep up the scatological toilet bashing!!


  1. Great Post Subprime:

    I wish I could post a live debt clock for my close to 300K Student Loan Debt that has increased by 6K over the last three months.

    At this rate, and with the fixed interest rate it has, the debt will grow to about 800K before it is "Abated" in 20 to 24 years under the arrangement I have now.

    However, I think the figure will really be over 1 million dollars, because the interest will be compounded.

    True Story. Absolutely True, and enough to drive a person nuts.

    No Bankruptcy option. No way out.

  2. I'd like to learn more about economics, never learned anything about it in my 22 years of schooling. What are some essential books/articles to read?

  3. I do like your take on other topics, but metals are a red herring imo. Just another bubble. Gold and silver have no intrinsic value outside of a worldwide collapse. Bad bet long term.

  4. "Gold and silver have no intrinsic value outside of a worldwide collapse"

    Bullshit. Aside from their aesthetic uses - as a lifelong numismatist I can affirm that nothing looks quite like real silver or gold, except in the eyes of tasteless J---ish American Princesses, in particular bankers' wives - their industrial uses are legion.

    Not everything can be created or simulated digitally or with other kinds of "technology". There is a direct correlation between the Late Modern Age's blind faith in technology and the current financial collapse, the locus of which is the most strictly Modern Age nation in the world.

  5. Dan,

    Whether or not we will have a worldwide collapse, no one knows. But what we DO know is that central banks around the world are printing trillions worth of fiat currency. It's a very simple formula in fact: more fiat in relation to precious metals means fiat will lose value against precious metals. To what extent the devaluation will occur I don't know. But what I do know is that until I see our beloved government spend within its means, I'm keeping my metals.

  6. Subprime:

    Your path and mine are very similar. As a young attorney, I have done a lot of the same study and research-over the same period of years. I have drawn many of the same conclusions you have in this article. Funny, with all the education I have, four years ago the economy was a mystery to me....aside from a few economic classes I had to take as a political science major. You know, the degree "they" said you needed to have in order to apply to law school. I read, studied, read some more. How was I able to see the housing bubble when so many economists did not? Rhetorical-I used common sense.

    Either way, I admire your courage in putting up this information as well as saying it like it is...

  7. Anonymous said...
    I'd like to learn more about economics, never learned anything about it in my 22 years of schooling. What are some essential books/articles to read?
    April 8, 2011 9:04 PM

    A good start is:
    Economics in One Lesson
    Wealth of Nations by Adam Smith - You can find a free audio copy (unabridged) at

    I studied economics in college and really love the topic. If you want higher level economics lessons you can find a lot of free courses online from leading universities. You will not get credit for the course.

    For shorter coverage of specific topics, check out the itunes store. The London School of Economics, among others, has a lot of free podcasts on specific topics in economics.


  9. Stiglitz's work is important, as is Nouriel Roubini's. Obviously, Krugman is one to read, too . . .

  10. Subprime - big fan of your blog/message and think you're a good/smart guy, but what are you saying? We should all start hoarding precious metals and hide out in cement bunkers? Please quit with the doomsday scenarios and stick to the basics.

    Also, at least proof-read your posts one time so there aren't so many typos.

  11. Anon at 1:08 PM

    Thanks for the heads up on the typos. Just corrected seven of them! I'm so damn busy lately I've been working 7 day weeks because I'm picking up weekend shifts at the restaurant. Nonetheless I love this blog and will not neglect it no matter how busy I am.

    With regards to the cement bunkers statement I don't think the world will revert back to the stone age. However, I believe that we as a species will have to adjust our lifestyles as energy supplies will interfere with our economic system. Some Citigroup analyst was saying that world GDP will grow from approx $50 trillion today to approx $500 trillion by 2050. Based on current crude oil production forecasts, I just cannot see the world economy growing 10 times bigger than it is today, at least in real terms. Also, currency failure is not a very radical idea as it has happened time and time again throughout history. Moreover, on a global micro level, the US has it's own severe fiscal problems. This is how I see things taking place. It is still possible to make good money and live a decent life. I know several people that have opened new businesses that are making good coin. Check out Scott Slater at Slaters 50/50. This young guy at the age of 28 opened a restaurant in Anaheim Hills, CA and he is killing it. Poly Sci grad from San Diego State, starting selling hot dogs outside home depos and is now running a super successful restaurant. I know some jackasses selling ADT alarms making 6k a month. It's still possible and if you can find a way then do it.

    Personally, I live a double life. I work super hard (two jobs) trying to make and save as much as I can while keeping an eye on the markets, hoping that things don't go to shit. Hoping for the best outcome, but expecting the worst based on the terrible facts (deficit, debt, currency creation, oil supply deficit). Take care.

  12. Hi SubPrime,

    I am not a law school graduate. But upon graduating from undergraduate, I was under tremendous pressure to find a job or go to graduate school. I, like you, spent the last 4 years reading economics obsessively.

    In my first job, I worked for 55 hours making $600 a week. I was at a crucial stage in my life where I was deciding between graduate school or looking for a better job. From my thorough research online, I chose the latter. After 3 years from my first job, I now make more than 3x in a job that I absolutely love and have passion for. It is also in an industry that is expanding very rapidly internationally.

    To think that I had almost enrolled in law school 16 months ago scares the shit out of me. Now I can go on to pursue my lifelong dreams.

    Haigui Biopreneur

  13. Subprime,
    Awesome work, and btw me and my buddy went to Slater 50/50 not too long ago, we loved the place.

    One thing I'd like you to mention in your blog is even if you do not have student loans, attending law school can be a loss. You lose 3 years of income, building title at a job if you had one before law school (I did), and you age 3.5 years from entering law school to getting your bar results. This makes you much less marketable in and outside the law for a decent paying job. Plus the money you use to pay off your loans, it could have been used for other things, like investments, or starting the next Slater 50/50!

    Employers do not want older entry-level candidates in their late 20s, they want younger, 22 year olds.

  14. @ Caryn.... Did you really just list Paul Krugman as a economist people should actually read... the guy who was Enron's advisor prior to their collapse... o voy...

    @ Subprime. Love the blog. Don't listen to what the naysayser say. Your economic posts and your law school school posts go hand in hand and both messages are just as vital.

    Also, do you still speculate silver going towards 80+ by year end?

  15. Anyone who claims to know what price a asset class will hit and by when is either a liar or a lunatic. That being said, I have no idea WHEN silver will hit the triple digits but based on the actions of central banks and governments around the world it is very likely that silver will eventually reach those lofty levels. Keep in mind that silver is a very small market thus being susceptible to rapid flashes AND crashes. So buyer beware.

    Thanks for the support and I will continue to post information that I believe is extemely important for all of us to know and understand.


  16. 40 yr old LSAT takerApril 14, 2011 at 7:59 AM

    I was seriously considering law school until a couple of days ago. Now I don't know what to think. I understand about the horrible debt load and the poor prospects for earning enough to pay them down...Subprime, what would you say to someone who could pay most of the tuition bills as they came in? Would the JD then be worth it? This person (yeah, me) would rather work for herself and is 40 now, and not to sound egotistical, very smart. I wouldn't want to work for a firm that controlled my life and all my waking hours. I have kids and I have to send them to college and other job prospects (I used to teach) seem dim right now. Getting a law degree and working for myself seems the best option. Am I crazy? Feel free to tell me. Thanks for the very interesting blog, and I wish you well (although I am concerned about your economy doomsday prognostications).

  17. Given that you're 40 years old by the time you graduated and pass the bar you will be 44-45. Throw in a good 100k depending where you attend plus 3 yrs of lost income (depending on how much you make) lets assume 50k per year, you will be out a good 250k in the span of 4 years. Lets assume you go to a tier 2/3/4, your starting salary MAAYYYYY be 40-60k per year. What if it takes you a year to get work? You stated that you would want to work for yourself. Not going to happen at least not right out of law school. You will need a good 1-3 yrs of working under someone else to learn the ropes before you start taking on your own clients. And then you need to figure out how you will find said clients. What practice area? Bankruptcy? Family law? Criminal? Personal injury? Get in line as there are thousands of established firms with big marketing budgets which more or less dominate the decent leads. Thus, the solo option goes out the window, at least for a few years.

    Bottom line is that at your age its not worth it. Biglaw and midlaw will never hire you. I'm not even sure small law will hire you as this job requires major hustle and stress. And going out on your own is a extremely risky move.

    And then there is the risk that you fail the bar a few times. In the event of that happening you will go possibly 5-6 years without income. Not worth it. Go look into a expanding field, not a overly saturated and SHRINKING field.

    With regards to doomsaying, I hope I'm wrong.

    Good luck

  18. 40 yr old LSAT taker (not anymore)April 14, 2011 at 1:40 PM

    Well, I appreciate the honesty...if it could save me $$, it's worth knowing.

    Speaking of $$, I can't get my money back from the LSAT...which I signed up for June and obviously have not yet taken. They don't do full refunds.
    Frankly, I think that's, they tried to talk me back into it, saying there are plenty of middle-aged and newly-minted lawyers.

    It's hard to know what to believe, but I will err on the side of believing you.


  19. People need to do their due diligence before plunging into a 4 year plan. Most young people that attend law school have never worked full time before and don't know what it means to manage their finances. Hence why you see some grads out there with 200k in debt. As you have been in the workforce for some time you have a better understanding of dollars and cents. If law school was a 2 yr stint for 40k out the door with a license then sure it wouldnt be a terrible move. 4 yrs is too much time considering the cost and the risk of working for 30k a year in a chopshop firm. Keep doing what you're doing and seek a job/career in a field where entry costs are low as opposed to the law school money machine.


  20. gee subprime you spend a lot of time reading about shit when you can be watching The Hills and Dancing with the Stars... Stay in school!

  21. eToro is the #1 forex trading platform for rookie and advanced traders.


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