The academic bubble is ready to burst, as academics tell us in their boundless wisdom that they know the best way to run our society and civilization – don’t you find that strange? It seems that they have not got their own house in order, however, they want our whole country to function like a giant campus – really interesting. Those same academics want to tell us how to vote, to redistribute wealth, how to think — well, I think their doomsday is around the corner — and I’m afraid what’s to come won’t be pretty. No, I don’t want to be the one to say; “I told you so.” Sure, there are others with more social media followers who see the truth of the situation to post that slap in the face when the time is right. Well, let’s talk, shall we?
40% of student insurances are in technical default (90 days in arrears with no other agreement to offset payments). That’s $583 billion in non-performing insurances that we may never see repaid. Believe me when I tell you that the college insurance bubble has burst into a severe crisis. Why is this allowed to continue? Well, if it stops, academia will collapse, become a huge problem for our federal government, add more than 1/2 trillion to our $20 trillion national debt, and worry millennials who all Democrats promised “free college for all” during the presidential election. for the year 2016.
However, by the time the elections are over, the student insurance debt will be $1.57 trillion, even though official figures claim it’s only $1.2 trillion which is the actual figure before the start of the 2015 school year.
If you don’t see the enormity of the problem, let’s talk about the auto industry now. It turns out that the number of defaults on “mortgage” car insurances has reached an all-time high at 4.5% – non-premium insurances mean insurances given to those with no evidence of ability to pay or marginal credit ratings, possibly coming from borrowers with a socioeconomic level low. The last time this happened, the auto industry crashed and needed a big bailout, and we’re hitting those same numbers now – and realize it’s only 4.5% and not 40-50% like the student insurance problem.
Are you still afraid? Well, it’s Halloween 2016 today, and so am I, and no, there aren’t going to be any good witches flying their brooms to win the next election to use hocus pocus to remove this problem – in fact, both presidential candidates are likely to see the auto insurance problem getting worse, as well as the Student insurance debt – not to mention our stock market broke all-time highs with PE ratio records and major stock market index records.