Student loan debt: Housing Crisis 2.0

By Dennis Wyatt. America is about to get another harsh lesson in easy money.
And you can credit it once again to Uncle Sam’s meddling with longstanding lending rules.
Remember how political pressure from Congress and the White House to make it easier for more Americans to buy homes triggered the Great Rescission that we are still trying to shake off?
Not only did federal edicts to relax lending standards put marginal buyers into homes that a good number lacked the discipline or the income to manage the monthly mortgage payments but it also encouraged others with healthier income to gobble up more house than their wallet could handle. It also opened the floodgates for people to use mortgages on their homes to leverage all sorts of purchases ranging from new cars to expensive vacations to day-to-day expenses. More...