Why it will be worse than the housing bubble:
Once again government has created the conditions for wholesale failure, and failure is upon us.
From 1976 to 2010, the prices of all commodities rose 280 percent. The price of homes rose 400 percent. Private education? A whopping 1,000 percent.
In the end, this bubble will be worse than the last. Even when homeowners got hopelessly behind on their mortgages, two options helped. First, they could declare bankruptcy and free themselves of their crippling debt; second, they could sell their houses to pay down most of their loans.
Students don’t have either of these options. It’s illegal to absolve student loan debt through bankruptcy, and you can’t sell back an education.
I hope that it has a disproportionate effect on the academic left. In a sane world, the first thing to go would be diversity programs, with “studies” departments hard on their heels.
