Comments On The Upcoming Bursting Of The College Debt Bubble

[Joanne98]

From the NIA

The National Inflation Association believes that the United States has a college education bubble that is set to burst beginning in mid-2011. This bursting bubble will have effects that are even more far-reaching than the bursting of the Real Estate bubble in 2006. College education could possibly be the largest scam in U.S. history.

NIA's advice to the youth of America today is to think for yourselves. Don't get suckered into overpaying for a college degree that is worthless because everyone else has one. College is only worth attending if you plan on actually learning something there. If you are only going to college because you think a piece of paper is going to help you find a job, you would be much better off skipping college and entering the workforce right now at any entry level job. Your experience will benefit you more than any piece of paper.

The median U.S. home price is currently $170,600, down 26% from its peak of $230,200 in July of 2006. The Dow Jones is currently 11,672, down 18% from its peak of 14,198 in October of 2007. Oil is currently $91 per barrel, down 38% from its peak of $147 per barrel in July of 2008. After the financial panic of 2008, the U.S. saw a collapse in the prices of just about all assets, goods, services, and commodities. Between lost stock market and home equity wealth, Americans lost $10.2 trillion in paper wealth in 2008, and have only recouped a fraction of it since then.

College is the only thing in America that never declined in price during the panic of 2008. It actually rose in price substantially. The annual tuition for a private four-year college was $21,235 in the 2005-2006 school year. Despite Real Estate beginning to collapse in late-2006, college tuition rose by 4.6% in the 2006-2007 school year to $22,218. Despite the stock market beginning to collapse in late-2007, college tuition rose by 6.7% in the 2007-2008 school year to $23,712. Despite oil and other commodities collapsing in late-2008, college tuition rose by 6.2% in the 2008-2009 school year to $25,177. Even after the Dow Jones crashed to a low in early-2009 of 6,469, college tuition still rose by 4.4% in the 2009-2010 school year to $26,273.

http://www.zerohedge.com/article/nia-comments-upcoming-bursting-bankruptcy-non-dischargeable-college-debt-bubble

[90-percent]

1. Bubbles

My gut tells me that the economic landscape of the world is littered with bubbles waiting to explode in the future.

I'm sure the Nobel Laureates that invented derivatives and default credit swaps and all those other turn-debt-into-investment schemes invented many other bubbles that the public will only learn about when they explode and ruin yet some other portion of the world economy.

Not to mention American Wall Street and Bank overhauls tiptoed past the systemic problems that are still there to wreak future economic suffering on the bottom 98%.

-90% Jimmy

[TwixVoy]

2. WTF

Why is this allowed here on DU?

"NIA" is a scam penny stock organization run by right wingers. It is absolute BS.

[Systematic Chaos]

3. So those figures on the rising costs of tuition are all lies?

:shrug: