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>"Both the subprime-mortgage business and for-profit colleges are built on giving loans to people who can’t pay them back." I think they're missing the slight
by makmanalp 16y ago
>"Both the subprime-mortgage business and for-profit colleges are built on giving loans to people who can’t pay them back."
I think they're missing the slight point that a college graduate will hopefully turn into a person who has a constant and decent inflow of income.
- joe_the_user 16y agoNo, they simply aren't missing that point. Yes, a college graduate is likely to have a higher income. That doesn't mean they can't barrow more than they are able to pay back. In the subprime days, the line was "a house has intrinsic value". Yes, it has intrinsic value but not unlimited value - especially when the market starts to experience a glut.