The NEXT Sub-Prime CRISIS

One out of SEVEN who took out student loans are defaulting on them...of course!  They get an education, then graduate with skills in an area, and guess what?...the JOBS for their skills aren't anywhere to be found!  Now there is a TRILLION DOLLAR crisis! ...Dennis

This Is The Next Sub-Prime Crisis: Jim Rickards

The staggering cost of student loan debt is daunting -- it tops $1 trillion.

Now there is new data showing that students are increasingly faltering under the weight of this debt.

The U.S. Department of Education says figures reveal one in seven borrowers defaulted on their federal student loans. The default rate also rose to 14.7% from 13.4% the year before, the highest level since 1995 based on a related measure, according to Bloomberg News. (The report is for the three years to Sept. 30, 2012.)

In this video, Jim Rickards, senior managing director at Tangent Capital and author of Currency Wars: The Making of the Next Global Crisis and the upcoming Death of Money, calls the student loan debt load the “next sub-prime crisis.”

Rickards makes his case based in part on the size of the debt and the nature of its underwriting.

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