Debt Bubble: Will the Market Crash Because of College Costs?
Re: last night’s convo w/ my friend Mike.
Interesting timing.
I like the thesis on the surface, but I don’t agree with the conclusion (that the debt incurred due to inflated cost of college education is going to be more damaging than the housing market).
It is true that government-backed student loans inflates costs in ways similar to why health care costs are inflated. Also, universities (especially for-profit ones) aren’t incentivized to churn out great graduates, but instead to maximize government loan dollars received, which is horrible.
The key difference here is that with houses, people saw it as an investment that could be flipped for cash in 5-10 years. You can’t liquidate a college education. You can be successful without a $60k degree, but you can’t live without a roof over your head.
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caterpillarcowboy reblogged this from anoemi and added:
I like the thesis on the surface, but I don’t agree with the conclusion (that the debt incurred due to inflated cost of...
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