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?

Replacing Bernanke: Nine Top Contenders for the Next Fed Chair – Businessweek

English: President Barack Obama confers with F...

English: President Barack Obama confers with Federal Reserve Chairman Ben Bernanke following their meeting at the White House. (Photo credit: Wikipedia)

This is an excellent HIGHLY RECOMMENDED article from Peter Coy, Bloomberg Businessweek Economics Editor, published in Businessweek. Check it out!

Replacing Bernanke: Nine Top Contenders for the Next Fed Chair – Businessweek.

Any thoughts on who might become the next chairman of the Fed?

Enhanced by Zemanta