There are some interesting, but misleading charts on the student debt problem in Experian's report: Student Loan Debt Climbs to $1.4 Trillion in 2019.

By misleading, I do not mean purposely so, nor do I mean inaccurate. I simply mean that on the surface one is likely to draw the wrong conclusions.

Please reflect on the above chart. I added the highlight in yellow and the comment.

While pondering, here are some additional charts.

Consumer Debt Balances by Credit Product

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Student loans represent the second-largest credit debt for Americans, trailing only mortgage loans. Nationwide, there are more than 148 million outstanding student loan accounts.

There is nothing misleading about the highlight. I simply thought it was noteworthy.

Dubious Congratulations to North Carolina

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What's Misleading?

I hope you gave this some thought.

14.4% of the population with student debt does not seem overwhelming.

But those under the age of 18 don't have much or any student debt. Those over the age of 40 don't have much or any student debt.

Concentration

  • Student debt is concentrated in age groups that have few assets.
  • Student debt is concentrated in age groups also struggling with credit card debt.
  • Finally, and most importantly, student debt mostly impacts those in age groups who may want to buy a home, get married, or start a family.

Housing Starts

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On Tuesday I commented: Housing Starts Down Slightly: Single-Family Very Weak, Down 12.5% Year-Over-Year

Mortgage News Daily managed to spin the report as positive. It was really pathetic as the the above chart shows.

Single-family starts are well below where they were in 1959. And that is without accounting for rising population.

Piss Poor Monetary Policy

Fed policy bailed out the banks by creating another asset bubble.

That bubble is to the benefit of the banks, the already wealthy, the asset holders, and the baby boomers, in that order.

Millennials, the Screwed Generation

I commented on the prospects in Millennials, the Screwed Generation, Blame Boomers For Making Their Lives Worse

Clearly Fed policy is directed at keeping assets prices high and boomers spending.

There are just two problems. The approach is amoral. There ought not be a Fed in the first place.

Piss Poor Fiscal Policy

On Tuesday, Trump Lashed Out at ECB president Mario Draghi in a Tweetstorm.

Strange Bedfellows

Curiously, Elizabeth Warren in Bed With Trump: Both Want to Sink the Dollar.

Trump sided with progressive illiterates who believe a weak dollar is good.

Please explain that to struggling millennials stuck in student loans but otherwise wanting to get married, buy a home, and start a family.

Deflationary Outcome

The outcome of piss poor monetary policy coupled with inept fiscal policy is easy to see: A massive debt deflationary collapse in asset prices looms.

Meanwhile Economic Stupidity is Still Well Anchored as illiterates at the Fed debate the entirely useless Phillips Curve.

Bubbles B. Goode

Let's wrap things up with my video tribute to this mess: Bubbles B. Goode

Mike "Mish" Shedlock

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