Archive for the 'college debt' Category

The twin bubbles of housing and higher education – housing bubble expanded from 1997 to 2007 and imploded. Since 2000 tuition costs have been soaring but graduate pay has been falling. What happens when you price out a generation looking for starter homes?


Bubble university. Student loan accounts now match up with the number of auto loan accounts in the U.S. Future American home buyers will be hampered by massive student loan obligations and growth of for-profit education.


The lost generation and merging of credit bubbles – College graduates go into massive debt and enter a low wage job market. Median starting salary for the class of 2010 is $27,000. Student loan debt soaring while wages decline and delay a generation from buying homes.


Subprime colleges – Student loan debt now equivalent to 7 percent of U.S. GDP. For-profits claim Harvard bragging rights and that barbers can make $150,000 to $250,000 a year to lure students.


Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.


3 economics trends stifling wages and pushing home prices lower: 1,000,000 people apply for 60,000 McDonald’s jobs, the college tuition bubble, and long-term shadow inventory.


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