No, I didn’t say bubble butt, I said burst. And I am talking about the bubble created by the massive amount of student loan debt, which now surpasses even credit card debt in the US. The news that delinquencies are up drastically, is frightening.
Late last year, total student debt outstanding surpassed $1 trillion for the first time. Now, the problem of student loan delinquency is generating its own eye-popping numbers.
New data released today shows 11% of student loans were 90 days or more past due in the third quarter, up from 8.9% in the previous quarter and 8.8% a year prior, according to the Federal Reserve Bank of New York. It’s also the highest since at least 2003, when the bank first started tracking student loan delinquencies. “It’s a red flag and a warning sign that more Americans are struggling to repay their student loans — things are bad, really bad, and getting worse,” says Rich Williams, higher-education advocate at the U.S. Public Interest Research Group, a nonprofit based in Washington.
The latest data comes at a time when delinquencies on many other consumer debts, including credit cards and mortgages, are dropping. Overall, delinquency rates on outstanding consumer debt fell to 8.9% in the third quarter, from 10% a year prior, according to the FRBNY.
Anyone that doesn’t get their economic news from the usual DNC outlets in the LSM knows that contrary to the lies the economy is in dire shape, and the political shenanigans of the elitist class warrior cadre are sure to make thing even worse. It is no surprise that so many indoctrinate young minds that bought the liberal propaganda about college have racked a ton of debt pursuing their dreams, only to find out that in the real world, employers not only value skills, but shy away from people with crazy ideas that would hurt their businesses. Hence a lot of these youths are now sucking hard on the lemon life has shoved down their mouths.
I expect the number of delinquencies to go up, and go up drastically, as the US starts mirroring European levels of unemployment amongst the young. With way too many of these poor shlobs that were sold a false dream unable to shake the shackles of their student loan debt, they will all suffer a sever degradation of their living standards. But it will not stop with them. We will soon need to bail out the student loan industry as that comes crashing down.
The whole house of cards will then come tumbling down. A whole generation to see their futures not only be dimmer than those of their parents, but maybe even lost, in what I suspect historians of the future will describe as the age where because so many were duped by people pretending to mean well, humanity was plunged yet again into a dark age as the modern world’s economies imploded.
Don’t worry. I am sure they will come up with new taxes and cuts in the far away future that will magically fix this dilemma too. Social engineering sucks, but I am sure they will find a way to blame Boosh!