moneypitboss

Is a college degree worth it? Since the debt bubble burst spectacularly in 2007 many more prospective students are questioning the worth of a college degree. For so many decades it was simply taken at face value that getting a college degree, any college degree would be worth it. Slowly this perception has morphed when annual tuition is running at $20,000 or more at for-profit institutions and $50,000 for private institutions. More to the point, most of the recent educational growth has been financed with large wallet crushing student loans.

The Federal Reserve is the ultimate magician in concealing bad bets for the flawed banking system. Few in the history of the Federal Reserve have called them out on their shadow bailouts but people are starting to wakeup no thanks to the mainstream controlled media. Think about how insane it is to have a central bank that does not even report to the people of the country it serves and is able to destroy the currency by bailing out bosom buddy bankers at the expense of the population. How is that even possible?

The Federal Reserve has been going back and forth with reporting from Bloomberg regarding the massive bailouts and loans made to the financial sector during the crisis. What is rather astonishing is the ability to discuss trillions of dollars of loans made to largely irresponsible financial institutions with absolutely no oversight. Like an angry couple on Maury Povich, only an objective outsider can see how dysfunctional the relationship has become. All of this happened in the shadows. What is more astonishing is a large amount of questionable assets that were shifted from bank balance sheets are still sitting comfortably in the balance sheet of the Federal Reserve.

We have a serious economic crisis on our hands and the media simply fails to acknowledge it. You might be waking up to the first of the month thinking the wheels of the economy are fine. Yet silently, millions of Americans drive into mega supercenters like Wal-Mart only to wait for their monthly allotments of food assistance so they can pay for basic groceries. This trend is so prevalent that certain Wal-Mart centers are fully staffed at midnight since a large part of our society is waiting for that first day of the month to purchase food for their family. 46 million Americans are now receiving food assistance. How is this issue swept under the rug?

Italy is now facing the spillover effects from the European debt crisis brought on by Greece. Greece was merely a tiny domino in the bigger scheme of things and Italy is now being put into the spotlight. Tragically the hope was being misplace in the idea that somehow Greece would be solved and no further contagion would be spreading throughout Europe. That is now apparent not the case and it is likely that some major haircuts are going to be coming down the pipeline.

From the page: "The United States has over 4,000 college institutions many which have been raising tuition and fees far faster than the overall rate of inflation. Combine this with a younger and poorer population and you have a recipe for massive debt serfdom. As the recession drags painfully on, being the deepest and longest economic contraction since the Great Depression many people are questioning once deeply held mantras of economic prophesy. A home never goes down in value. You canâ€t go wrong with a college education. Of course these hollow statements mean little without further examination of the details."

The higher education bubble only continues to spiral out of control because the profits are so good for the massive banking industry that is pushing student loan debt to the trillion dollar level. At the same time the return on investment in education has been slowly diluted as more for-profit degrees enter the market place and water down what it once meant to have a bachelor's degree. If you can get what is the equivalent to a piece of paper and claim you have an education then the marketplace is going to add more scrutiny to those that graduate.

It can be argued that the world is suffering from an epidemic of chronic debt. The financial sector loves to play on words and would rather call certain debt issues as a credit crisis as if it were a temporary thing like a mid-life crisis. This is also similar to renaming junk bonds to something more user friendly like a household pet, high yield bonds. There seems to be a naïve euphoria that the problems in Europe are now resolved. Nothing has been resolved aside from forcefully cramming down write-downs and creating more debt to bailout more financial institutions.