by Pater Tenebrarum, Acting-Man.com:
A Number of Sectoral Credit Bubbles Become Evident
We have previously argued that the current inflationary echo boom (a boom with clear ‘depression undertones’ it should be added) is more diffuse than the previous two bubbles were, which were clearly concentrated in specific industries (namely technology and housing). This is still the case; the current echo boom is somewhat broader. Nevertheless, there are several areas in which the effects of the credit expansion have become decidedly manifest. One such area is the boom in student loans, a topic which Ramsey has discussed in some detail previously.
To the student loans debate we would add that the education sector is one in which the effects of the Fed’s massive money supply inflation are most clearly visible. Prices are rising at breathtaking speed and have done so for some time. It is no wonder therefore that student loans are skyrocketing, as average real incomes have declined over the same period.
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