Sep 16 2015

How subprime loans keep the bubble going: Subprime auto loans continue to grow as credit worthy customers drop out of the market.

Low interest rates create an environment that encourages debt based spending.  In regards to monetary policy, this is how you grease the wheels to get the economic engine spinning.  As part of your financial arsenal this can be used in moderation but the Fed has been using maximum credit leverage since the economy imploded and […]

Aug 31 2013

Why are so many young Americans living at home? Record number of Americans living at home while student debt reaches another record.

While the unemployment rate continues to fall in large part because people are dropping out of the workforce, we reach another record which highlights a difficult economy for young people.  A record number of young Americans now live at home.  It would be one thing if this was being driven by a desire to stay […]

Jul 21 2013

Arrested development courtesy of student debt: How student debt is putting the lives of many young Americans on hold.

Many young Americans view student debt as a necessary evil in pursuing higher education.  The level of student debt now reaches Himalayan levels as many are falling behind on keeping up with payments.  A double-edged sword has befallen young Americans.  First, the path to middle class jobs no longer runs through a blue collar industry […]

Nov 25 2012

Is College Worth the Price and Debt? Private student loans make up $150 billion of the $1 trillion in outstanding student debt. Private student loans grow hand and hand with for-profit institution growth.

Few will ever argue that getting an education is a worthy goal.  College is seen as the gateway to a better life and mobility into the middle class.  The middle class has been shrinking while the cost of attending college has skyrocketed.  The cost to attend college has far outstripped any sensible economic measure and […]

Apr 12 2012

Educating students to debt – Student loan debt now second largest sector of household debt approaching $1 trillion. 14 percent of consumers have one account in collections.

College debt is fueling the out of control higher education bubble.  The Federal Reserve tracks most household debt sectors very carefully including mortgage debt, auto debt, and credit card debt.  You would think that they would follow student loan debt carefully.  That was not the case until recently.  More disturbing however is that student debt […]

Feb 23 2012

The compression of generations – 25 million adults live at home with parents because they’re unemployed or underemployed. The crushing cost of a college education today.

The thought of moving out on your own and making your individual way in the world is very much an American trait.  Certainly movies and television shows almost always assume every American has moved out on their own once adulthood is reached.  What this recession has taught us is never take anything for what is […]

Jan 31 2012

The law school bubble – At 50 law schools, 20% of the students are either unemployed, flunked out, or are unknown yet data does not show up in national rankings. Many more pass bar exam than actual job openings in legal field. Legal bubble is another tangent of the higher education bubble.

The higher education bubble has gotten a solid amount of press coverage in the last couple of years.  Even with student loan debt lurching towards the $1 trillion mark the higher education bubble train keeps moving along.  Part of this has to do with the odd financialization of higher education where things are so extreme […]

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