Government Pumping Money in (Or Incentivizing It) Creates Excess Demand
- Mortgage debt outstanding as of July 2019: US$15.8trn
- Student loans outstanding as of Jan 2020: US$1.7trn
Why has the cost of education increased?
From the 2008 school year to the 2018 school year, 41 states spent less per student, after adjusting for inflation.
Washington Times reported on Maxine Waters’ questioning of banking chiefs over the student loan crisis. (Maxine Waters is the chairwoman of the House Financial Services)
“What are you guys doing to help us with this student loan debt? Who would like to answer first? Mr. Monahan, big bank.” – Ms. Waters
“We stopped making student loans in 2007 or so.” – Brian Monahan, BofA chairman and CEO
“We exited student lending in 2009.” – Michael Corbat, Citigroup CEO
“When the government took over student lending in 2010 or so, we stopped doing all student lending.” – Jamie Dimon, JPMorgan chairman and CEO
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