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FBN’s Lou Dobbs on the impact on the economy of the mounting student loan debt crisis.
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-- a new report out today from the New York Federal Reserve funds the student loan debt.
We knew it was huge but that it's jumping.
That's a while consumers are actually reducing mortgage debt and credit card balances Lou Dobbs host of Lou Dobbs tonight is here with his reaction -- I have to ask you about the breaking news John Edwards essentially going to walk -- -- think.
I think that the prosecutors were.
More ironic in -- making a decision for prosecute.
The former senator.
This is a waste of taxpayer money there are terrorists out there who deserve their attention there are so many issues in this country.
And this kind of political grandstanding by federal prosecutors is unforgivable.
And they by the way cannot be held accountable it's your responsibility -- at its worst.
A waste of everybody's time and money -- let's let's get to the issue here that does matter.
-- -- it really comes down to what its economy people are worried about not all of this political backbiting but.
The of course the student loan issue we knew it was close to a trillion but it is jumping exponentially.
And in the numbers we know -- going to continue to rise particularly given the fact that so few people can afford.
Higher education right now.
If it is -- -- maddening to think.
That you know we we keep reporting on these numbers and people will not say the people we interview the people we're as we report the sources that we've got.
The statistics the empirical evidence we got.
Here's the deal.
A little lose this thing it's going to go to adopt a five shirts and -- audiences well.
But people will just simply not acknowledge what we're facing here.
This is a higher education bubble.
Universities and colleges are spending too much money they're bringing in too much money.
The federal government just it's -- it's doing without Medicare.
Is inflating and inflating -- medical cost is inflating educational cost it's got to stop.
The economics are false it is a bubble and it's gotta be recognized as such or write down on your show.
This very moment for the first time we're declaring -- a bubble and people particular policy makers are lawmakers are got to recognize that and deal with it.
Because the inefficiencies the lack of productivity.
And frankly the wanton waste -- money and time of arm pressure -- people.
Is being wasted and this they are this country's future.
And we are -- look -- Wasting your time and those and those monies that could be so much better and more efficiently.
-- bubbles usually coincide with government subsidies or government backing up somehow I mean -- government the Fed printing a lot of moderate keeping interest rates low grade in the bubble in housing.
In this case the bubble was created by the government guaranteeing.
To those colleges that no matter how much they raise their tuition they're gonna be paid either by rich parents or by the government by taxpayers.
That's certainly give them the majority of the issue.
But let's not forget those federal grants that are going to universities and other art colleges.
In in support of quote and quote higher education.
And then think about when we go to the through -- social sciences rather be economic sociology.
Broader.
Broader disciplines.
Including public health.
We have so much money being pumped into those universities for research grants we can tell you about how a -- on an elephant's posterior is thinking about gay sex and Argentina.
It's in singing and some of the projects that are being funded by the federal government.
In the pursuit of higher education this is nonsense and it's time for grown up educated men and women in this country.
Whether we're in the national media where there were in government or are there -- just simply going to go on and vote in November to say enough.
We know that there will be consequences and many of them painful for -- to bring down the hammer on this ball well but it's got to stop.
They say that if you were to pull out and pull away student loans then you might see universities drop their prices my -- we wish it but that we have to ask another question.
How many people should be going to college why aren't we emphasizing trade.
And skills and in this country vocational training.
We have a bunch of fools are who have made a decision.
That we can -- put in college and university education.
Folks who really don't first -- -- in my judgment of belong there that there is no basis in history for the number of people are worsening off to college.
And if you look at the prices of the late and that we're paying for their labor and their skills and their education right now.
That reflects the true reality it's a different world and our policy makers ago come to -- -- If you're looking for answers about fleas in the posterior of elephants you should I go to Lou Dobbs website it's not there correct it is not okay are Lou Dobbs thank you very much you can -- flu every -- night 7 PM eastern right here on Fox Business we.
