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Unintended consequence!

Or something. Yeah, sure. What do you ask am I talking about? Well, the left’s recent realization that carrying a shit-ton of student debt will prevent you from buying a home. Now the left limits it to first time home buyers, but it applies to any homebuyer at all: if you have a student debt that is as big as a mortgage you have shown you are not a reliable debtor to most sane lending entities. From the article:

The growing student loan burden carried by millions of Americans threatens to undermine the housing recovery’s momentum by discouraging, or even blocking, a generation of potential buyers from purchasing their first homes.

Recent improvements in the housing market have been fueled largely by investors who snapped up homes in the past few years. But that demand is waning as prices climb and mortgage rates rise. An analysis by the Mortgage Bankers Association found that loan applications for home purchases have slipped nearly 20 percent in the past four months compared with the same period a year earlier.

First-time buyers, the bedrock of the housing market, are not stepping up to fill the void. They have accounted for nearly a third of home purchases over the past year, well below the historical norm, industry figures show. The trend has alarmed some housing experts, who suspect that student loan debt is partly to blame. That debt has tripled from a decade earlier, to more than $1 trillion, while wages for young college graduates have dropped.

The fear is that many young adults can no longer save for a down payment or qualify for a mortgage, impeding the housing market and the overall economy, which relies heavily on the housing sector for growth, regulators and mortgage industry experts said.

And if only the poor shlobs had the debt to deal with. But most are also hampered with useless degrees, lack of jobs and job opportunities, living in momma’s basement, and the whole culture of entitlement that tells them they should demand everything yesterday.

Of course, nobody foresaw this. Oh, shit I can’t keep the pretense up. We pointed this out a decade ago, and got told we where trying to deny the young a better future. And yet, we are back to doing more of the same. We keep telling them to rack up the debt. We keep putting policies in place that destroy the job market. We keep undermining education and turning it into liberal dogma school instead of teaching them something of value. And most important of all, we keep pretending the failed shit the left believes in can be made to work regardless of what over a century of proof has shown us. Hey, but they are promising you free shit that will cost you and arm and a leg.

I am sure the left’s answer will be more of the same shit that caused the problem though, because the right people or laws are not in place to defy human nature or the laws of economics, yet again. Say, what’s the definition of insanity again?

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  1. Seattle Outcast says:

    If they are extremely lucky, they could get a PhD in classical history with three or four undergraduate degrees in extremely hot subjects like “French”, and then be qualified to teach high school Latin like my sister is doing.

    I know her graduate degrees were free rides from UC Boulder, and she got a lot of free cash to go to the University of Montana, but most of that was due to her age (went back to school in her 40′s after she was bored with being a corporate bankruptcy accountant) and the fact that she has a GPA that turned heads.

    So, while she’s churning away toward retirement in a few years, she has her summers off, her house is paid for, and she spends her time ruining movies for people by telling how wrong they got the history. For real, don’t let her watch anything that involves events that happened 2000+ years ago.

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