Posted on 02/27/2012 11:29:52 AM PST by RightGeek
As the title suggests, please name the latest bubble: (see picture - answer below)
(Excerpt) Read more at zerohedge.com ...
If you said student loans, you were correct. What is curious is that while virtually everyone has known about the student loan bubble in recent quarters, it is only for the past 3 that the Fed has actually started to disclose this data in its consumer loan excel spreadsheet (link - page 3). For historical data prior to 2011 we had to pull Bloomberg data (TDBCSTUD Index) going back to 1999. Perhaps the recent astronomical jump is why the Fed has been keeping a tight lip on this data...
And for those to whom this is news, here are some thoughts on the matter from before.
I guess we don't have to worry about a shortage of Art History and Womyn's Studies majors.
I guess I should put on my glasses. When I read the headline, I saw “Name the Bubbie” and thought: “Pictures of Jewish grandmothers?”
Back in the old days, 1960 for me. You either had your parents pay for your college ,or you found work so you could pay for your own, or you got a job and just didn’t go.I wouldn’t have thought about going $12,000 dollars in debt to go to college.I was taught you got what you paid for and if you couldn’t afford it, you did without.
Today the parents live high on the hog on credit cards and teach their kids to do the same. Borrowing other peoples money doesnt have the connotations it used to have.
Then on the otherside College was half way affordable, it didn’t cost 50 or 60 thousand dollars a semester.
College costs have ballooned because they hire professors to teach horse crap instead of teaching the basics.
The kids I feel sorry for are the kids in school to become Doctors. My Neice owes 120 thousand dollars forher schooling, Now she is an intern in a hospital and starting to pay it back.
But what happens when Obamacare comes into play and they start paying all doctors at the same rate? When they decide what that rate is? When they cut the rates to save the program?
It all comes down to the ability of the FED to print money and the US Gov’t to borrow endlessly, as the US Dollar is the world’s reserve currency - AND we have the US military to keep the present global structure in place.
Those are the USA’s two main advantages.
How long it is until that is destroyed, is anyone’s guess. But when its gone, it is not coming back.
You are a clear and present danger to the Obama dependency state. Report to your neighborhood block commander or nearest SEIU or reborn ACORN office for transportation to a reeducation center. It is for the greater good.
You forgot to mention that the ballooning education costs are the direct result of government subsidies. Government has made it so that people can no longer pay to go to college. And then took over student loans. Not to mention the licenses and accredidations required now for many jobs, and the ever increasing levels of education required to get them. Don’t think it’s not on purpose.
I dare say that the U.S. is no longer the world’s reserve currency, we just don’t realize it yet. When China and Russia, and China and Iran, and India and I-forget-who are all ending their trade among one another in U.S. dollar, I dare say we are n o longer the “reserve currency.” Now, we may have the most investment in us, but it’s falling. It’s like saying you have a lot of money in one bank that’s going to go under. And you start putting new savings into another bank, while slowly drawing down that first account. Now, which is your reserve, or “your” savings plan (what you’re reserving your future in)? I suppose you could say both, or the one that has the most. But in effect it’s the one you’re moving towards, not the one you used to be with. I know it can be looked at a lot of ways, but that’s the way I see it.
“How long it is until that is destroyed, is anyone’s guess. But when its gone, it is not coming back.”
Probably months. I imagine it will be quite sudden, and abrupt. But you’re right, who knows.
No, they've ballooned because of all the easy money available to pay the ever increasing tuition bills. Like Pell Grants, Sallie Mae loans, etc. etc. Colleges have found there's no problem in hiking up the fees -- there are ready suckers ready to pay-up and with the dollars (via student loans and grants) to do so.
And of course, universities have been driving up their overhead (how many administrators were around when you went to college in the 1960's or 1970's?) to spread all of that money around. Where I went to college: I'd guess administration and overhead has been growing at around 10% per year since 1970 when I graduated. Do the math and shake your head.
And here's a prediction: besides there being a major default on all of this debt sometime in the next 10 years or so, online education is going to start taking a huge share (and much cost) out of the traditional education establishment.
Name the Bubble contest....
My entry: “Snake”.....looks like one and is about to bite someone on the rear end.
Oh, it already has a name? Nevermind....
I believe your answer has a lot of Credibility.
The old story of Supply and demand. When the supply of money is there they demand more of it.
I never went to college, went in the military 10 days after graduation.
Didn’t have the money to go to college and didn’t want to wait to get drafted. Joined the National Guard spent 6 months got a job at a missile base near home after completion of basic.Worked at the missile base until I joined the DC Fire Department.
Could have been Barbie.............
Or a horse named Buck.................
Not as much as you might think. I was appalled at the price of taking courses online with the University of Phoenix. But they do have those stadium naming rights to pay for.
I nominate ‘Obubble’ as the name.
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