That Popping Sound You Hear

…may just be the next economic bubble bursting. Fitch is disclosing that of the $1 trillion plus in student loans outstanding, “as many as 27% of all student loan borrowers are more than 30 days past due.” ZeroHedge reports, “In other words at least $270 billion in student loans are no longer current. That this is happening with interest rates at record lows is quite stunning and a loud wake up call that it is not rates that determine affordability and sustainability: it is general economic conditions, deplorable as they may be, which have made the popping of the student loan bubble inevitable. It also means that if the rise in interest rate continues, then the student loan bubble will pop that much faster, and bring another $1 trillion in unintended consequences on the shoulders of the US taxpayer who once again will be left footing the bill.”

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