STUDENT LOANS the next bomb to stifle the economy !

[Joel Owens]

Interesting read here.

http://xfinity.comcast.net/articles/news-national/20120403/US.Student.Loan.Bubble/?cid=hero_media

[Nathan Emmert]

Mike, what you're missing is what the Government can do to get the money owed. This isn't normal debt you can erase with a foreclosure. They can put liens on homes, they can pull money out of bank accounts, they can rape and pillage almost at will if you were ever to even think about defaulting.

Most people prioritize their bills. Feed the family, make sure we keep the house, make sure we keep the car, keep the lights and heat on... okay, now cell phones, cable tv, credit cards, other loans. If we can't make ends meet, typically something like a college loan payment would be towards the bottom of the list. With the Government elevating that payment to the top of the list, suddenly everything else is at risk. The auto industry, real estate, credit cards, etc. It can have a HUGE trickle down effect. Not to mention that again with damaged credit, another buyer is removed from the pool further decreasing demand.

The education problem in this country is huge. Too many people getting stupid degrees. Colleges charging WAY too much. Employers demanding college educations but barely compensating employees beyond a HS degree. The ROI on a degree now is terrible for most people.