If you stand back and look at this....it’s a 2008-like scenario waiting to unfold and crash.
I would agree...a restriction on loans has to be implemented....but it’d trigger a massive gutting of school programs across the US and probably a quarter of all professors would have to be let go. Go and try to explain that to several thousand such professors or their school bosses.
There will be no need.
The laws of economics are as certain and as brutal as the law of gravity.
Think of all those people who rushed into the housing market some years ago. It should have been obvious to anyone that things couldn't continue as they were.
Housing prices were rising at 25% per year in some markets. Realtors had to stay on the phone continuously in order to track which listed homes were still for sale. Morgage underwriters were making money hand over fist just generating loan papers.
When the bubble burst there was plenty of agony to go around.
The same will be true for the student loan bubble. Professors, schools, students, and college communities will all get to participate in a violent shakeout. There will be many survivors in the STEM fields, certainly. But there will be many casualties. Darkened lecture halls. Depressed communities. Lines of people willing to take virtually any job.
The government will print plenty of money but it won't have the impact one might expect.
Some of us have wondered why the liberals don't just raise the minimum wage to $100 per hour so that everyone can be wealthy. They just might end up doing that but it won't have the intended effect.