Saturday, June 05, 2010

Bubblemania: Housing + Student Debt Converge

Surprise! The next generation of potential home buyers labors under massive student debt.
The cost of college has exploded over the last decade, outpacing even the housing bubble. The culprits are the same wolves, just dressed up a little differently: easy credit, greed, and lots of kool-aid to to around. The toxic combination of high student debt levels and a terrible job market is crippling the financial future of recent college grads. From a real estate perspective, this could impact the starter-home markets for the a decade or more as the next generation of first-time homebuyers is already burdened with too much debt.
Remember this too about college debt:
Even worse, government-backed student loan debt cannot be walked-away from or discharged in bankruptcy. Many will be saddled with their debts for decades to come.
HOW MANY TIMES do I have to bang on and on about how government meddling makes things worse in the education sector? Especially where money is involved? I mean, REALLY. Talk about creating a victim class!

And what about us young nerds? Basically, we're screwed, aren't we? I've railed against the housing bubble before, so I won't repeat myself. I've ranted, am ranting, and will keep on ranting about the higher ed bubble, so I'll let it go for now. Just read the whole linked article.


2 comments:

Brian J. Dunn said...

Ranting is good for the soul, if I do say so ...

Mad Minerva said...

Cathartastic!