4 ms·

I'm betting student loans are going to have something to do with it. https://pbs.twimg.com/media/CkcJGZfVEAEw239.jpg:large https://pbs.twimg.com/media/CkcJGZfV

• artursapek 9y ago
  It seems so obvious that it's too obvious to end up happening... but I agree.
  • liquidki 9y ago
    Kinda like giving home loans to people who have no ability to pay them back?
    • artursapek 9y ago
      That's exactly why it seems obvious!
• jdmichal 9y ago
  Except student loans are going to be worse. You can't exactly have your diploma foreclosed on, and they're difficult to extinguish through bankruptcy.
• adventured 9y ago
  Your chart needs to be updated. It's no longer climbing at the same rate, because that rate of growth was impossible to sustain. The chart will increasingly begin to flat-line in the next decade. Student loans will not be the source of the next financial crisis, that problem is trivial to solve as necessary. It involves a trillion dollars; the financial crisis involved tens of trillions of dollars. 1) The Fed was printing nearly a trillion dollars per year for QE in prior years, one print run like that directed at student loans instantly ends the problem. 2) Option one is a bad premise, as it rewards the student loan borrowers and punishes savers (debasing the dollar). Alternatively, you can drop the interest rate on student loans (which would encourage a greater pile of debt long-term but solve the problem short-term). Or come up with any number of other easy solutions to the payments such as lower caps on monthly payments based on income. 3) The Feds can begin bringing down the cost of college education at any time, by slowly reducing their loan backing. Universities will be forced to unwind their spending bubble.