Part of the student loan mess that is now a big bubble searching for a spot to go snap, crackle and pop should show anyone who cares to check: A good thing gone too far can become a bad thing.
A recent article in a major journal noted an increase during the recession of people of all ages applying for and receiving student loans to live off not attend school. Some might call it fraud. We just call it hopeless, jobless and broke, three attributes one needs today to qualify for a student loan.
Like water easy money will find its own level and that level is not always a good or an intended one. Massive liquidity and zero interest rates, sound familiar?
MSM and the other apologists aside, growth is slowing despite the huge money infusion as evidenced by a flattening yield curve. The S word as in spreads becomes critical here. The real estate market's drop in new mortgages and new housing starts, among numerous other indicators, should tell you something.
As economist David Stockman recently noted, "It don't snow in San Jose." So forget all the Wall Street warbling about winter. It's the line with least resistance. And forget, too, crack cocaine and the big H, this is a global economy high on easy money and low interest rates.
It's a party hardly anyone wants to end. Show me someone who loathes retrenchment and I'll show you an elected official. Cold Turkey Day when it arrives is much like karma--a beach!
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