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View Full Version : More government created bubbles--the student and student debt bubbles



Mainecoons
04-26-2012, 06:51 AM
http://globaleconomicanalysis.blogspot.mx/2012/04/53-of-new-graduates-are-jobless-or.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+MishsGlobalEconomicTrendAnalysi s+(Mish's+Global+Economic+Trend+Analysis)


About 1.5 million, or 53.6%, of bachelor's degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years. In 2000, the share was at a low of 41%, before the dot-com bust erased job gains for college graduates in the telecommunications and IT fields.


Sadly, there is a trillion dollar student loan bubble, and that debt overhang will negatively impact the economy for years to come.

Yep, another road to hell paved with good intentions from liberal government. With all that easy money being pumped out by government, colleges have seen no reason to be serious about controlling costs and tuition increases, both of which have consistently outstripped inflation. Now we have a bunch of people graduating in hock up to their ears with worthless humanities degrees they can't get decent paying jobs with.

When are liberals going to get it that these programs don't work?

Stoney
04-26-2012, 07:23 AM
More buying votes.

MMC
04-26-2012, 08:47 AM
Did you see what Obama was saying about his and his OL education. He knows he has been losing the youth vote. So he figures hey lets wipe out your debt. Vote for me and I'll set you free.

But you are right.....why are tuition fees that high? Why have they risen faster than anything else. To me it is major Rip off. How do they justify the costs?

Conley
04-26-2012, 08:51 AM
Yep, another road to hell paved with good intentions from liberal government. With all that easy money being pumped out by government, colleges have seen no reason to be serious about controlling costs and tuition increases, both of which have consistently outstripped inflation. Now we have a bunch of people graduating in hock up to their ears with worthless humanities degrees they can't get decent paying jobs with.

Is this the government's fault, the people who took the loan's fault, or a combination of both? It seems like you are blaming the government.

For me it brings to mind the housing crisis as well. It seems some don't understand that a loan will come due one day.

MMC
04-26-2012, 08:57 AM
Is this the government's fault, the people who took the loan's fault, or a combination of both? It seems like you are blaming the government.

For me it brings to mind the housing crisis as well. It seems some don't understand that a loan will come due one day.

But if the government is subsidizing then it is the tax-payers money.

Conley
04-26-2012, 09:01 AM
But if the government is subsidizing then it is the tax-payers money.

True - and I'm not saying the government is blameless. At the end of the day though, personal accountability is a big factor in general and in this case would have prevented an individual from taking on more debt than he or she could carry.

Captain Obvious
04-26-2012, 09:35 AM
http://globaleconomicanalysis.blogspot.mx/2012/04/53-of-new-graduates-are-jobless-or.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+MishsGlobalEconomicTrendAnalysi s+(Mish's+Global+Economic+Trend+Analysis) (http://globaleconomicanalysis.blogspot.mx/2012/04/53-of-new-graduates-are-jobless-or.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+MishsGlobalEconomicTrendAnalysi s+%28Mish%27s+Global+Economic+Trend+Analysis%29)





Yep, another road to hell paved with good intentions from liberal government. With all that easy money being pumped out by government, colleges have seen no reason to be serious about controlling costs and tuition increases, both of which have consistently outstripped inflation. Now we have a bunch of people graduating in hock up to their ears with worthless humanities degrees they can't get decent paying jobs with.

When are liberals going to get it that these programs don't work?

I'm on another forum, I'm a home brewer and this homebrewing forum is kinda gritty. Lots of savory characters there, but someone posted something about student loans in the odds-and-ends section. A lot of the homebrewers on this site are kids, 20-somethings, many of them have student loans and they're all pissing and moaning about getting them forgiven.

They complained that student loans were too easy to get and they stockpiled debt like crazy and now can't pay them off. Many of them also admitted to using student loans for other shit like musical equipment and cars.

Now maybe there is some lack of wisdom in making all this money available to basically kids who don't know shit from shit (I thought student loans paid funds directly to institutions though), but at the end of the day, people have to be responsible and accountable for their actions.

I am infuriated at the suggestion that loans should be forgiven. Why should I have to pay for someone elses bad decisioins? It's just like the whole mortgage thing, sort of. How many people bought houses they couldn't afford by over-leveraging them? I didn't over-leverage my house and I paid off all of my student loans. Now I have to pay for everyone elses mortgage and student loans.

Fuck that.

Conley
04-26-2012, 09:38 AM
In the political arena if it comes down to the banks getting their money back from loans versus a bunch of unemployed twenty somethings, I have no doubt that the bankers will win. Some politicians, in order to get votes, may try to pretend that some substantial breaks will be given to the students but at the end of the day the banks will win.

MMC
04-26-2012, 11:18 AM
Moreover Obama was talking about the Stafford loans.....which with small banks are more apt to approve with a Community college. As opposed to Some University or out of state one.

I am with Cap on this too. Why should the Tax-payers have to foot the bill due to people not being responsible for themselves.

OFBUACMKA
04-26-2012, 11:22 AM
I am with Cap on this too. Why should the Tax-payers have to foot the bill due to people not being responsible for themselves.

It's the "something for nothing" mentality that's so rampant these days. OCCUPY EVERYTHING!

Captain Obvious
04-26-2012, 12:17 PM
It's the "something for nothing" mentality that's so rampant these days. OCCUPY EVERYTHING!

Abso-fucking-lutely

Conley
04-26-2012, 04:19 PM
I somewhat agree with the slagging on America's youth, but speaking of taking responsibility, we have to remember who the parents were for these individuals some are maligning. Maybe the problem started with the parenting and kids never being told "no"? :wink:

MMC
04-26-2012, 04:32 PM
Still doesnt excuse the Universities from Charging so much.. Granted there are going to be many that want to go to the top schools around. Well sometimes one has to face reality and go to that community college.

Conley
04-26-2012, 04:35 PM
Shouldn't private universities be able to charge whatever they want? Public universities, in order to keep faculty, have raised tuition to match as best they can. So how do you put an end to that?

Mister D
04-26-2012, 04:39 PM
And for what? Few undergrads can be described as "well educated".

Conley
04-26-2012, 04:42 PM
And for what? Few undergrads can be described as "well educated".

Well, I don't know what you mean by well educated. I agree they're generally not well rounded but at least those who study the right subjects can improve their chances of getting a job. I think our society has become more specialized and I'm not sure well rounded educations are necessary, especially when much of liberal arts can be learned and experienced outside of a college curriculum.

Mister D
04-26-2012, 04:56 PM
Good observation. Modern intellectuals are highly specialized and our educational system is designed for specialization. IMO, being well educated is to be "well rounded", as you say. "Education" in the modern world is essentially job training.

Right. It's all about getting a job and improving one's economic status. That's what our society values most. We tend to see everything else as somewhat pointless.

Conley
04-26-2012, 05:03 PM
Right, and you know my own feelings on that aspect of society - I reject it for myself. I wish the world were more well rounded, but I'm a dinosaur and as you say education now is job training. Even looking back I think I was at my strongest, educationally speaking, upon graduating from high school. After that in college it was more a case of studying for a test, crams, brain dumps, and so forth.

Mister D
04-26-2012, 05:45 PM
No doubt I approach education like an aristocrat of yesteryear but I believe we send far too many young people to college.

The funny thing about college is that so many kids treat what they learn there as the unassailable truth.

Conley
04-26-2012, 05:48 PM
Yeah, we're aristocrats. Suck on that, specialized bitches. :grin:

It's true what you say about college but I think a lot of people that age think they have it all figured out. I know I did...sometimes it takes life knocking you on your ass a couple of times before you realize you're wrong.

Mister D
04-26-2012, 05:54 PM
Yeah, we're aristocrats. Suck on that, specialized bitches. :grin:

It's true what you say about college but I think a lot of people that age think they have it all figured out. I know I did...sometimes it takes life knocking you on your ass a couple of times before you realize you're wrong.

Some fields are extremely technical and require many years of study and practice. A biologist, for example, has devoted the majority of his studies and most of his more intense studies to his particular field. These are typically highly intelligent individuals but I'm just not sure if I'd call them well educated.

True that.

MMC
04-26-2012, 05:56 PM
No doubt I approach education like an aristocrat of yesteryear but I believe we send far too many young people to college.

The funny thing about college is that so many kids treat what they learn there as the unassailable truth.

I noticed that.....whatever was in the book. Like that was the only truth. When I was taking US History 101. I couldnt believe that people didnt try to research stuff and ask questions. Or try to debunk shit or even prove the instructor was wrong about something. Many never read anything but the American Version of things. Same with jumping into Eastern Civilizations and always having guys bring shit up about what the US says.

I don't have a problem with College Universities Conducting Any buisness. But I also dont think they should be charging high tuitions wherein people cannot afford to be educated.

Also how much is driven by Sports and their scholarships. Sure today they may be more up on academics. But back in the day.....you know that was not the case. Wasnt it always shown in this area long before now?