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re: Student-Loan Delinquencies Now Surpass Credit Cards

Posted on 12/2/12 at 10:40 am to
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423365 posts
Posted on 12/2/12 at 10:40 am to
quote:

Having recently finished reading The Big Short, I am obviously looking for the next big bubble. Anybody know of this can blow up in our faces like the subprime mortgage business? If so how much would the impact on the economy be? Could there be a Michael Burry out there today who has made his play and just waiting to cash in when this student loan bubble bursts? If you wanted to short something, where would you start looking?

i'm no financial guru, but unless you can invest in colleges, i don't see how there is an investment vehicle to short. the universities are already paid. the banks have the loans backed by the federal government. you could short the banks hoping that the feds welch on that bet, but it's not a good gamble

and you can't short the feds, yet

*ETA: i'm not a finance guy so i might be missing something, but with the likely federal bailouts, i don't see it
This post was edited on 12/2/12 at 10:44 am
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