Bernanke says student debt no threat to U.S. financial system | Reuters

According to Ben Bernanke, former head of the Fed, student loans are mostly backed by the government while mortgages, which sparked the 2008 financial crisis, were held by publicly traded financial institutions susceptible to panic.

Source: Bernanke says student debt no threat to U.S. financial system | Reuters

This article by Reuters highlights the skyhigh levels of student debt in the US, set against a poor outlook for jobs. Without wealthy parents, ambitious young people are forced to taken on student debt. This situation will no doubt color the views of many young Americans ahead of the US presidential election.

This article highlights the risks for young people in other countries, with high levels of student debt. In Europe for example, it is hard for young people to find proper jobs to utilize effectively their education. Typically, student debt levels in Europe do not yet reach American levels.

Part of the problem is to do with technology changing the outlook for jobs and educational establishments not matching educational services with demand for jobs.

Thoughts?

One response

  1. According to Eric Schmidt of Google 50% of American jobs will have disappeared by 203,3 so many of today’s students will be out of work and unable to repay their student loans.

    Bernanke in this article provided to us courtesy of Dr Alf is therefore propounding more of the nonsense we have come to know him for during and since the financial crisis.

    Educational institutions, politicians and those in local authorities the world over, plus television commentators and economists are all in denial about AI, robotics, nanotechnology, automation and cybernetics. They still imagine that it will come right on the night and deliver “An age of leisure”, a concept I was first introduced to as a schoolboy by an English teacher called ‘Calthrop’ who wore a Harris tweed sports jacket with leather elbow patches.

    The future is neither “Bright nor orange” but it will have to be faced squarely so that the fruits of production are shared more equitably and the concept of what work is for is redefined.

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