Thursday, August 7, 2014
Subprime Mortgages, as American as Apple Pie?
Marc Faber : I ask you all to ponder this because recently student loan debt has become the new subprime mortgage, and has become part of the American national agenda. Student debt has crossed the $1.2 trillion marker, becoming the second highest form of consumer debt after housing mortgages, with 2/3rd of students with an average of USD $26,000 debt after graduation.
Until 2008 people were acquiring mortgages that they couldn’t pay, and in 2014 we move to the same beat but to a different drummer. Nowadays, students are getting loans to pay for college but there’s a degree of uncertainty as to whether they can afford that debt or not and also how much debt can they take on.
So far there are many who graduate staring down a tough job market, with a large debt to service. As such, policies to fix this issues has been taken into debate, and many ideas have surfaced due to this. Ideas run the gamut, from slashing students' interest rates by half, fixing the interest rate at a 10% cap of a student's income for the next 20 years in the U.S., to forgiveness/bankruptcy innovations and even house arrest in Mexico. Progress as it may appear, the problem yet remains without a feasible solution- students can’t find decent paying, full time jobs, and interest rates are increasing, and the economy remains on a downturn.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Dr. Marc Faber Tomorrow's Gold
Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.