Saturday, June 7, 2014

Student Loans: Cannibalizing The Mortgage Market

"Economists Are Worried"
I've been talking about this for ten years now.  Kids coming out of college these days already have a mortgage on their education … and no house to show for it. Asset bubble inflation and ever-growing personal debt is not a sustainable economic policy.
"But in 2012, the New York Fed reported that for the first time in at least a decade, 30-year-old student borrowers were less likely to take out home mortgages than other young people. Among people around 30 years old, homeownership was plunging fastest for student debtors. Economists are worried. Last month, former Treasury Secretary Lawrence Summers said that student loan debt was taking the life out of the housing recovery, and the Nobel laureate Joseph Stiglitz called the rising debt "an educational crisis" that is "affecting our potential future growth.""

Forty years of policy choices to transfer every nickel of wealth in our society upwards to the 0.01% will do that.

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