Which bubble will burst next?

fishinshawn · #1 03/24/12, 03:40 PM

As gas prices rise, food stuffs will rise, and ultimately everything else will to. When gas hit $5+ a gallon last time, many people seemed to refuse to change there lifestyle and everything was put on charge cards and eventually when that ran out people were getting home equity lines of credit, then the housing bubble burst. Now gas is going to hit $5 a gallon again, I think most on this site know this and are prepping for it, but what about the vast majority of americans? I reckon that most peoples liens of credit are maxed out, or close to it, the housing market is still low, so how are they going to do it? Or will this be it? Will this be the last nail in coffin for the middle class? Will homelessness, umemployment, and crime rates rise sending us into a soft apocalypse? A place where the rich will live in gated communities and the rest of us barely get by day to day?

pancho · #2 03/24/12, 04:01 PM

People may be forced to live on what they make.

SquashNut · #3 03/24/12, 04:40 PM

Quote:

Originally Posted by pancho

People may be forced to live on what they make.

Or less, the way your supposed to.

kasilofhome · #4 03/25/12, 01:16 PM

I think that the next bubble to burst will be passivity. The word is out that OWS want to ramp up. Just being a pain and in peoples face was not enough. Not, that they (as a whole) being peaceful law abiding people before. I believe that the line will be crossed. Whether it is caused by the increase in frustraition due to money woes, or the insulting of the leadership as to the regulations, restictions, or attack on the basic premise of this country. Threads of meds not on the shelf, mentioning of animal feed becoming an issue, the discussing knowledge that health agenda goverment is infavor of "pink Slime". The bold lies from leadership. The instilling of class and race divide will pressureize the chamber of humanity to the posidable volitale end result.

I am preying that just like a pressure pot that the steam is releases as needed.

jessimeredith · #5 03/25/12, 02:09 PM

Student loans...as two of the few folks in our friend circle that pay their loans, hubs and I are an apparent rarity. Seems far too many have them and can't/won't pay them. I look for that to fall out all over the place.

SquashNut · #6 03/25/12, 02:38 PM

food/fuel inflation

TnAndy · #7 03/25/12, 03:55 PM

Quote:

Originally Posted by jessimeredith

Student loans...as two of the few folks in our friend circle that pay their loans, hubs and I are an apparent rarity. Seems far too many have them and can't/won't pay them. I look for that to fall out all over the place.

From an article at Zero Hedge today:

http://www.zerohedge.com/news/first-...ays-delinquent

Back in late 2006 and early 2007 a few (soon to be very rich) people were warning anyone who cared to listen, about what cracks in the subprime facade meant for the housing sector and the credit bubble in general. They were largely ignored as none other than the Fed chairman promised that all is fine (see here). A few months later New Century collapsed and the rest is history: tens of trillions later we are still picking up the pieces and housing continues to collapse. Yet one bubble which the Federal Government managed to blow in the meantime to staggering proportions in virtually no time, for no other reason than to give the impression of consumer releveraging, was the student debt bubble, which at last check just surpassed $1 trillion, and is growing at $40-50 billion each month. However, just like subprime, the first cracks have now appeared. In a report set to convince borrowers that Student Loan ABS are still safe - of course they are - they are backed by all taxpayers after all in the form of the Family Federal Education Program - Fitch discloses something rather troubling, namely that of the $1 trillion + in student debt outstanding, "as many as 27% of all student loan borrowers are more than 30 days past due." In other words at least $270 billion in student loans are no longer current. That this is happening with interest rates at record lows is quite stunning and a loud wake up call that it is not rates that determine affordability and sustainability: it is general economic conditions, deplorable as they may be, which have made the popping of the student loan bubble inevitable. It also means that if the rise in interest rate continues, then the student loan bubble will pop that much faster, and bring another $1 trillion in unintended consequences on the shoulders of the US taxpayer who once again will be left footing the bill.

Lilbitof4 · #8 03/25/12, 04:19 PM

I work at a state university and agree with Jessi... the next bubble to burst is student loans. The amount of student loans that PARENTS are carrying is at an unbelievable level, not to mention the kids themselves that are going to be hard pressed to find a position in this economy that makes even the min. payment.

ldc · #9 03/25/12, 04:32 PM

About student loans; have 2 friends hoping to collect SS soon (within 2 years), and both have huge student loans outstanding...y'all know soc sec is in cahoots w the loan people, and is already deducting the loan amounts from their eventual ss payments??? If my 2 friends have "magical" thinking on this subject, what about other 60 yr olds???

Ohio dreamer · #10 03/25/12, 04:59 PM

Having never had student loans I don't get how they work (DH had one, but it was only $700 and we paid it off in a few months). Normally to get a loan you need collateral that can be revoked.....what is "put up" for student loans?

With the cost of a college education rising at crazy rates, I'm wondering if getting a college education will soon become a privilege of the wealthy instead of a "god given right for all" as is has been the past 30 yrs. My oldest is finishing 7th this year....how in the world we will put him through college at the current rates I have no idea, and what he could do without that piece of paper I have no idea. He still has no direction in what he wants to do...but I do know that I don't want him relying on student loans to do "it".

Sonshine · #11 03/25/12, 05:27 PM

I don't think it's going to be one bubble, but a total economic breakdown. As gas prices increase, so will everything else. With people out of work, or working for lower incomes we'll see more that will go to the government for assistance, see more abandoning their homes, not able to pay back student loans, or any other type of loan. I also believe it won't be long till we see our major cities in flames as OWS gets in full swing and as racial tensions rise.

ldc · #12 03/25/12, 05:32 PM

Ohio Dreamer: there is no collateral for student loans...just contracts to re-pay, with a stated interest rate. When I was a student 2 decades ago, most loans were backed by the government, or by the institution the student was attending, or by a local bank. These days there are a lot of private banks doing these loans, even with variable interest rates! Very tricky business...

sidepasser · #13 03/25/12, 05:39 PM

No collateral is needed for student loans..they can never be bankrupted against, and the loan agency can always collect if the student gets a job (garnishment of wages if required); if student acquires anything that can be levied against such as a house or car. Student loans are the one loan that must be repaid eventually, I wouldn't be surprised if they don't live on after the student's death..lol..