NY FED FINDS 15% OF AMERICANS HAVE NEGATIVE NET WORTH; STUDENT LOANS CONTRIBUTE TO RECORD US WEALTH INEQUALITY
Two weeks ago, the White House released a report that led to loud heckles among the more pragmatic economic community. As the WSJ described its conclusion: “the growing stack of $1.3 trillion in student debt is helping, not hurting, the U.S. economy” (there was much more in the full report which to many was nothing short of propaganda seeking to spin a $1.3 trillion debt bubble into a good thing).
Today, none other than the NY Fed took the White House to task with a surprisingly accurate (to an extent) analysis, based on a Survey of Consumer Finances, according to which not only do student loans contribute substantially to an emerging problem in US society, namely rising negative household net worth, but is also a key driver behind wealth inequality. – READ MORE