ARE STUDENT LOANS THE NEXT HOUSING BUBBLE?


We’ve seen the unpropitious goods of the housing marketplace bubble; will we see the same formula with the tyro debt crisis? In this video Professor Antony Da…

{ 25 comments }

rheechashaipu December 5, 2013 at 1:42 pm

Bubbles happening on their own is one issue and a natural fault of markets.
Bubbles happening because of subsidies is a fault of the government.

Zauberin Miss Edith December 5, 2013 at 1:52 pm

Not everything that has value can be quantified in money. You can learn
something of enormous value to you but you might never be able to make
money out of it.

david December 5, 2013 at 2:44 pm

Yeah, all the time. That’s why you didn’t give any examples.

jim cognition December 5, 2013 at 2:53 pm

I predict that the Govt will lean on the student debt issue during any
possible military conflict, because of the public distaste for
conscription. “Join up, get your debt waved after (x) years of service”.
You could keep them in their own battalions and send them straight to the
front line. Because you know, the Govt really cares about you

Alec D. December 5, 2013 at 3:10 pm

He said bubbles in housing and education were propagated in large part by
government and both times those bubbles occurred, that is what happened.
He’s not a liar; you just didn’t listen properly.

Jeff Launiere December 5, 2013 at 3:52 pm

Of course our government caused the housing bubble, and they will cause the
next bubble, which will be student loans. The economist in this video
explains why this bubble when it crashes will be much worse than the
housing bubble debacle.

Shawn Protsman December 5, 2013 at 4:09 pm

They have the same ingredients.

Christopher DH December 5, 2013 at 4:18 pm

Great talk about the detrimental effects of student-loans….

James Sullivan December 5, 2013 at 5:13 pm

Student Loans *are* the Next Housing Bubble

Joe Wallace December 5, 2013 at 5:21 pm

Oh Look, What I’ve been saying for YEARS.

Antony Davies December 5, 2013 at 5:47 pm

The built in incentives to use our resources well are profit and loss.
Someone who uses resources to create value earns a profit. Someone who uses
resources to destroy value earns a loss. The profit motive encourages
people to wring the maximum value out of resources.

Mablak December 5, 2013 at 5:50 pm

Student loans are almost definitely coming next. I really can’t stand this
dogmatic 100% free market brainwashing though. Education needs to be cheap
and available to everyone, the idea that freely made choices will result in
the best outcome here is lunacy, our choices also need to be rational,
well-informed, and directed towards building a better society. Poor
students deserve an education as well.

Gina Degraphenreid December 5, 2013 at 6:11 pm

There were people saying the same thing in regards to the housing bubble.
Hence why so many people on wall street got rich off the crash, they were
betting against it the whole time.

chitownsuperfan December 5, 2013 at 6:21 pm

i know all about it. Pretty much the only degree that’s really necessary is
in the health sciences field, to make sure doctors and nurses and whatnot
actually know what they’re doing

Jaben Carter December 5, 2013 at 6:30 pm

I’m going to assume you are saying this in a sarcastic fashion. If so, this
is pretty humorous. If not, then I seriously question your IQ count. haha

Neville Lamberti December 5, 2013 at 7:29 pm

Amen.

gracilism December 5, 2013 at 7:30 pm

That is incorrect. He saw the bubble because he understood the intervention
of the government in housing loans causes distortions of the marketplace.
But we’re fighting the same fight.

MSimky December 5, 2013 at 8:03 pm

This video is transparently based on an article called “Risk Based Student
Loans”, but completely butchers that study’s findings. More than half of
the “facts” in this video are incorrect. If you want to see a nuanced, fact
based, and scholarly take on higher education and student loans, go to SSRN
and search “Risk based student loans.” The government makes a *profit* on
its student loans–lending benefits taxpayers. And students still get
better rates than they would with private lenders.

GroovyNickyLee December 5, 2013 at 8:58 pm

You do realize that there is no economic reason that anyone should have to
pay for post secondary education, right? All that we need is for the
government to start taxing corporations and so on, which they already
SHOULD be doing, and suddenly we’d have shitloads of money for things like
that. Oh, and for those trillions and trillions of dollars that the US owes.

ar mukherjee December 5, 2013 at 9:04 pm

i am an indian i used to fantasise about usa …but now i see its full of
shit….our country is lot better ,,,as an indian citizen one can complete
graduation free of cost ,,,,and completeting phd wold require only 500$ in
us terms (multiply by 54 in indian currency)after wacthing this video i am
proud to an indian,,,’

canibus19 December 5, 2013 at 9:07 pm

Phew, thankfully I can say my student debt for undergraduate is around
$30k. That’s very payable..esp in 10-20 years. Haven’t decided if the
Masters program is worth the risk. I’ll probably take it slowly and just
take a 3-4 classes a year to keep debt down. The cost would be covered by
military benefits, financial aid, scholarships, etc.

DanteWolfwood December 5, 2013 at 9:19 pm

ROFL BURN!

Trueconservative16 December 5, 2013 at 9:24 pm

by the way what are you studying in college?

dethninja5 December 5, 2013 at 10:03 pm

the housing bubble was predicted by many economists that are now a bit more
prevalent because of it. see peter schiff

Christopher Foose December 5, 2013 at 10:31 pm

Full Sail University

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