The Federal Reserve has authorized banks to create brand new
electronic accounting entry money out of thin air every time
they make a new loan. Banks can create enormous amounts of this
debt-money and pour it into any market. The banks fueled the
real estate bubble with easy mortgage money. They've been doing
the same thing with the education market. But it's far worse,
because there is no house to act as collateral for the loans.
Instead the industry has convinced Congress to make student
loans non-dischargable in bankruptcy court, turning student
borrowers into modern day indentured servants. Tuition will keep
expanding like a sponge, soaking up all this easy bank-created
debt-money. "The higher education bubble is a speculative boom
and bust phenomenon in the field of higher education. According
to the theory, while college tuition payments are rising, the
rate of return of a college degree is decreasing. . . . College
students who fail to find employment at the level needed to pay
back their loans in a re