Student Loan Debt Clock Is Ticking Away At 1.57 Trillion Dollars On Election Day 2016
The academic bubble is ready to burst, all the while academics in their infinite wisdom tell us they know best how to run our society and civilization – don’t you find that strange? It seems they haven’t gotten their own house in order, and however, want our complete country to run like a giant college campus – interesting indeed. These same academics want to tell us how to vote, re-spread wealth, and how to think – well, I think their day of reckoning is right around the corner – and I fear what’s to come will not be pretty. No, I don’t want to be the one to say; “I told you so.” Surely, there are others with more social media followers who see the reality of the situation to spread that in-your-confront slap when the time comes. Okay so, let’s talk shall we?
40% of the student loans are in technical default (90-days in the rears with no further agreement to catch up on payments). That is 583 Billion Dollars in defaulted loans that we may never see payment of. Trust me when I tell you that the College Loan Bubble has burst and is extreme crisis. Why is this allowed to continue? Well, if it stops it will collapse academia, become a huge problem for our Federal Government, add over 1/2 Trillion to our $20 Trillion National Debt, and cause the angst of millennials who the Democrats have all but promised “Free College For All” during the 2016 Presidential Election.
nevertheless, by the time the election is over the Student Loan debt will be 1.57 Trillion Dollars, already though the official figures claim it only 1.2 Trillion which was truly the figure before the start of the 2015 Academic Year.
If you don’t see the enormity of the problem, let’s talk about the auto industry right now. It turns out that the number of “Subprime” auto loan defaults are at another all-time high of 4.5% – Subprime meaning loans made to those without proof of ability to pay or marginal credit ratings, perhaps coming from low-socioeconomic borrowers. Last time this happened the auto industry crashed and needed a big bailout, and we are reaching those same numbers now – and realize this is only 4.5% not 40-50% like the student loan problem.
Scared however? Well, it is Halloween 2016 today, and I am, and no, there won’t be any good witches flying in on their brooms to win the next election to use hocus pocus to make this problem go away – indeed, both presidential candidates are likely to see the auto loan problem get worse, in addition as the student loan debt problem – not to mention our stock market breaking all-time highs with PE Ratios and major stock market indices records.