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Day after day stocks have been falling. And day after day hasbrought more bad news. Greece was on the verge of collapse. US growth figures revised downward. Consumer sentiment fell. Houseprices are still going down. Unemployment is going up. The whole world is turning Japanese. And then, oil closed at $83 on Friday. The Dow fell 274 points. The10-year T-note must have thought it was already in Tokyo ; the yield dropped to an unbelievable 1.45%. Was that a typo onthe Bloomberg line? And get this, gold rose $57. Whew! What s happening? The Great Correction is getting greater. And the odds that the fedswill panic in the US or in Euroland are increasing. Remember, the Fed works for the banks. And the bankers know who their ultimatemaster is. They ll play it cool. But if stocks fall below 10,000on the Dow and unemployment gets worse before the Novemberelection they ll come in with more QE. That s why gold is up sostrongly. Investors are running scared. They know they can t trustthe euro. As for the dollar , they re not so sure We can hardly wait to find out what happens today! What s the next industry to bubble up pop and collapse? Student loans, said our new friend, Barry Dyke. From the far north well, from New Hampshire Barry has beenfollowing the money. And he sees a lot of it going to theeducation. Why? It worked just like subprime, he explained. The feds bankrolled it. Guaranteed it. Regulated it. Andconveniently didn t notice as it got to monstrous proportions And then, when it blows up they ll be there again, pointingfingers and promising to regulate more heavily. When you pay for something, you get more of it, sayspresidential candidate Ron Paul. The feds paid for one heckuva a lot of education subsidizingstudents and colleges with trillions of dollars. They pay for GIsto go to school. They give grants to the schools themselves. Andthey hand out hundreds of billions in loans, at low teaser rates(just like subprime!) to students often to students who areunqualified and unlikely to get much out of it. Here s the Washington Post story: As the nation amasses more than $1 trillion in student loans,education experts say a vexing new problem has emerged: A growingnumber of young people have a mountain of debt but no degree toshow for it. Nearly 30 percent of college students who took out loans droppedout of school, up from fewer than a quarter of students a decadeago, according to a recent analysis of government data by thinktank Education Sector. College dropouts are also among the mostlikely to default on their loans, falling behind at a rate fourtimes that of graduates. They have the economic burden of the debt but they do not get thebenefit of higher income and higher levels of employment that onegets with a college degree, said Jack Remondi, chief operatingofficer at Sallie Mae , the nation s largest private student lender. Access andsuccess are not linking up. The plight of non-completers has grown in magnitude asstudent debt tops $1 trillion, according to the Consumer Financial Protection Bureau. In addition, the sputtering economy has forced a growing numberof students to make difficult choices between the benefits of adegree and the burden of paying for it. More students are balancingtheir studies with full- or part-time jobs or signing up for areduced course load to save money, increasing the likelihood thatthey will not graduate. Colleague, Justice Litle is on the case too: We have all heard it said: You can t put a price on a goodeducation. But this is silly of course you can. It was the thoughtless peddling of such a mantra that allowedinstitutions of higher learning to raise prices with impunity year after year, at a faster rate than inflation, as costs spiraledout of control with government-sponsored loan programs fuelingthe whole thing. Sound familiar? Echoing subprime, the college bubble even has its own version ofthe principal-agent problem, in which the financial interestsof the college (which profits from the loan money) have noalignment with the students (who voluntarily drown themselves indebt). Soon these (literally) poor, debt-burdened waiters and waitressesof the future may realize they were snookered, and wake up angry not unlike the legions of starry-eyed home buyers who, caught up inthe rush of the American dream, chained themselves to a grosslyinflated asset at a price impossible to pay. Geez. It looks like college students have been the chumps in thisstory flimflammed by the feds and the universities. But, remember, we are grateful to the patsies. They re the oneswho keep the whole scammy economy going. Imagine what would happen if young people decided to learnsomething instead of going to college? They could get a joblearning from a plumber or a machinist or apprenticing to afurniture maker or just sitting in the library with a big stack ofbooks and a notepad. No tuition payments no beer parties noorientation programs (No means no!) no graduation programs (Youcan make a change!) no research labs no football stadiums imagine if a group of them got together, hired a teacher andlearned the classics or theoretical physics or quantummechanics or linguistics the old fashioned way? Let s see, paythe teacher $80,000 split it among 7 students Goodteacher/student ratio much better than sitting in a lecture hallwith 150 other students. And $8,000 each. A lot better than the $40,000 we spent to send our five children tocollege. Yes we spent about $40,000 for each of them, per year.You can do the math. It adds up to $800,000. And we ve got onemore to go! That s why we re still writing these Daily Reckonings we can t afford to stop. And it s kinda fun, frankly as long as you don t take itseriously. But let s not talk about us. Let s talk about them. Those pooryoung people leaving school with $25,000 in debt (approximateaverage) and a punky job market. If they got a degree in math or science, they can probably get ajob. But what if they got a degree in the social sciences? Or thearts? Or no degree at all? How many baristas can Starbucks hire? What can they do? Go to work for the government! Or at least go to work inZombieTown. You don t need to know anything to work for the feds.No kidding. Regards, Bill Bonner for The Daily Reckoning. I am an expert from mobilesecuritydvr.com, while we provides the quality product, such as SD PTZ Camera , Vehicle Surveillance Camera Manufacturer, Sd Mobile DVR,and more.
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