Streams

Episode #1

Money Talking: Should We Be Scared of $1 Trillion in Student Loans?

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Friday, April 27, 2012

May 1 is the deadline for millions of high school seniors to choose where they will go to college in the fall.  To pay for it, many will take out thousands of dollars in student loans, only adding to the country’s more than $1 trillion in existing student debt. All this debt is having enormous consequences on economic growth.  Could student loans be the next financial bubble?

Plus: as Facebook faces its $100 billion IPO, we wonder if the social network has peaked -- its mobile strategy is lagging, its founder has resisted going public, and its profits have declined.

And Joe Nocera and Rana Foroohar run down the events they’re watching to make news in the week ahead -- China's political scene and Robert Caro's new book.

Hosted by:

Jeff Greenfield

Contributors:

Rana Foroohar and Joe Nocera

Comments [2]

Granpa Danl from Man

Loan-financed Education IS a bubble. My professors were proud to be teachers, and paid less than their brothers with bigger cars. NYU's destructive expansion plans should be considered part of that bubble ... and resisted!

Apr. 28 2012 01:50 AM

As usual Joe Nocera botches one.

The bubble since Ron Reagan is that we have securitized/monetized real & ephemeral assets and then speculated their values upward.

The asset of the student loans is the loan itself & its FED guarantee!!!!!

From the co-op/condoing of Manhattan through the S&L bailout, tech bubbles, etc. to the current commodity & gold bubbles we've built up a massive asset bubble & haven't taken any effective action.

Toss in the fact that the FED has hampered its bank support by directing the $$$ to the banks directly instead of to the homeowners, thus forcing the money that goes in the back door to the bank can only leave by the back door with the employees & we're left with the lack of consumer demand that keeps employment down.

It's a pleasure to have Jeff Greenfield on the air.

Apr. 27 2012 08:08 AM

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