"We have $1 trillion worth of
student loans out there, and recent studies show that only about 40% of
them are actually being paid right now," he warns. "We think this is a
huge problem area because as students graduate, there aren't the jobs or
the wages to sustain themselves to pay off these loans."
Add in defaults in Europe (Ireland, Greece, Portugal, Spain and
Cyprus), record low yields on junk bonds and borrowing costs for
emerging markets, and the stars are lining up for another huge crash. In
fact, he says the "blastoff in bond yields" in the municipal market
following Detroit's bankruptcy filing and Chicago's triple downgrade of
its credit rating as proof that it's already starting here.
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