Saturday, April 9, 2016

College debt trap spells trouble for the future of housing prices

Apparently 43% of the kids with college loans are in some way behind or in default on their loan payments according to this recent article.  Those kids, having been talked into taking on massive debt for "college" (rough translation: living expenses like room and board and beer and parties) now have the lifelong hangover of un-payable debt.  Maybe Obama will forgive all their debt before he leaves office but even this is going to backfire as the industry will never destroy those credit records.  Good luck to the deadbeat kid living in mom's basement after getting a useless shit degree in some no name college when he should have been learning stuff (and I mean anything you want to know) by watching YouTube or by taking online free courses.  Want to learn programming??  Download a an Android tree and free compilers and have a ball.  Afraid there will be nobody to answer questions?  Think again.  The Internet knows everything.  And if it hasn't already been written up, there are many forums with smart, experienced people generously donating their time to answer questions including sample code in many cases.

The government needed economic stimulus and it went after our kids to find it.  It made it easy for kids to go into debt and it encouraged corporations to stop all mentoring programs and instead rely on the college system to turn out ready to work young people.  Of course, all this is about to change.  There are so many loser kids out there who have become wards of the state because they just don't have the will to go out and kick ass and take names in whatever way their God given skills will allow.  I feel so sorry for the hopeless state that many of them must be in at this point.  There is just such a lack of real leadership because everyone is too busy chasing the Mammon Money.

Well, I just want to know how all these kids with bad credit and no job and high debt are going to get big loans to buy overpriced shelter that we call "homes".  The boomers will now begin to keel over at an exponentially rising rate and in many cases their otherwise homeless kids will just move in.  They won't take out loans and they won't be buying homes.  Housing is going to slip greatly as an asset class in the next 10 years and many will be surprised by it.

1 comment:

Augustine said...

Millions of young men with nothing to lose... What could go wrong?

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