well for-profit education is probably the most popular one. Then perhaps continued increasing defaults on student loans (a different theme of course but in the education realm). Aside from that I havent given it thought.
The fact that students are saddled with debt and can’t find jobs will have a deflationary effect on the economy for decades to come. This will get ugly and Occupy Wall Street was just the start.
People are dumb as fuck. I mean shit, look at how many people gave Peter Schiff $$
People are dumber than you think. I bet Peter Schiff is in the top 50% of money managers out there. Just goes to show you how bad the bottom 50% is.
For profit schools
Sallie Mae
Private lenders
Loan servicers
Home builders
I agree with Higg, but I do think the timing is tricky. The best way play a student loan bubble would be to short a vehicle with exposure to the loans themselves, not a derivative effect. Ideally, you’d want to do this in a levered manner. At least, that’s been the most efficient way to make money from a credit bubble burst historically.
SLARS (student loan auction rate securities) could be a way to get exposure. That means wading through bond docs, like these: http://www.pphea.org/investors/investors-info.php. I’d also be interested to see if stuff like this has been repackaged at all, since the opacity could lead to flawed credit analysis and mispricing.
^ Yeah, timing is everything. The system could come crashing down next spring, or 5 years from now.
bump, just to draw attention to how much…attention Ms. Whitney gets.
This doesn’t include the five threads in the GD forum.
lol