Debt | - Part 4

The Student Loan Hockey Sticks

Via this Bloomberg story on Friday by Noah Smith come the two charts below that help to explain why the nation’s student loan mess (that continues to slowly spiral out of control despite pleas from indebted students) will not likely see any substantive reform efforts.

Granted, the lower chart is a bit misleading because it doesn’t include Federal Reserve assets (another even more impressive hockey stick) or land owned by the federal government. Nonetheless, this is the sort of thing where it is sure to end very badly and whoever touches it between now and then is likely to be blamed for that outcome.

Tagged with:  

From Bloomberg comes word that credit managers for American companies are getting a little worried about debts going unpaid somewhere down the line, that is, when things might not be so hunky dory in the U.S. and global economy and the Fed is raising rates.

A few more dates on the x-axis would have been helpful for the main graphic, as would a little clarification about the end data point on the far right (given how the chart appears on the left, the composite index appears to still be above 50, but that’s in conflict with the two smaller graphics). In any case, it’s not good.

Tagged with:  

Best Job at the ECB

Who says monetary policy is boring?

Greece may be careening toward default amid growing concern that the global financial system is again ripe for a crisis, but spirits were lifted yesterday when activist Josephine Witt paid a visit to the European Central Bank policy committee as they gathered in Frankfurt.

See here, here, and here for more on this important development, highlighted by some amusing photos of an understandably alarmed ECB chief Mario Draghi after Ms. Witt (with her low rise jeans and thong underwear) jumped up on top of the conference table where Draghi was sitting, about to explain the policy committee’s latest thinking.

Tagged with:  

Secular Stagnation in Economic Theory

Starting at about the 3:40 mark, Kingston University Economist Steve Keen details how the recent Ben Bernanke/Larry Summers debate over secular stagnation is all kind of a waste of time since one of the most important drivers of economic activity – private sector credit creation – is routinely omitted from the discussion.

Future historians are not likely to be kind to the current crop of world-renowned economists who, in the aftermath of the worst financial crisis in 80 years, seem to have made little progress improving the tools of their trade in a manner that might help us all avert another financial crisis in the not-too-distant future.

Like a Ball and Chain

Someday, these post-financial crisis years will be looked back upon as being one of the most damaging periods to the American psyche with soaring wealth/income inequality topping the list of ills due, in large part, to monetary/fiscal policies enacted by TPTB.

Not far down said list is the burgeoning student loan problem that is transforming an entire generation and this CNN/Money story provides a view of things from recent graduates.

Interestingly, I have some first hand experience with this issue recently where a surprising number of ski instructors I’ve worked with over the winter are 20-something recent graduates who, you’d think, should be doing something different at this time.

A common refrain is that the four-year degree is the new high-school diploma and they all dread the student loan bills coming due.

Page 4 of 72« First...23456102030...Last »
© 2010-2011 The Mess That Greenspan Made