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| quote: | Originally posted by Shakka
For your reading pleasure, here is a copy of Steve Eisman's speech at last week's Ira Sohn conference (this is an annual meeting where smart fund managers pitch their best ideas). If you don't know who Steve Eisman is, you should. He is featured prominently in Michael Lewis' latest book, The Big Short. |
A good article from what I had time to read (hope to get back to it later).
I read a study about Canadian post-secondary schooling which had similar conclusions. It had a list of the schools where loan defaults were highest and all of them were 'non-traditional' types of schools that weren't associated with the government (aka, near unregulated).
It's not surprising that these problems have come up. Culturally 'education' has been sold as the way to climb the social and economic ladder. This has been sold to those who aren't really in a position to be able to deterimen that 'education' doesn't just mean going to a random school, it means working hard to improve your intelectual capabilities ... or reading, writing and doing math.
Learning a trade is ok, but one really needs to first evaluate the supply and demand for people with the skills being taught. All kinds of these 'trades' which are being taught in non-government institutions seem to be hitting labour markets that are way way over supplied.
Getting back to the US, here's a map from the NY Fed which covers, county by county, where delinquient student loans are concentrated:
http://data.newyorkfed.org/creditconditionsmap/
(it also has mortgage, credit card, and car payment deliquency rates)
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