Tuesday, October 13, 2015

Ben's At It Again - Bernanke Downplays Student Loan Debt

As Reuters reports, Ben Bernanke is downplaying the massive student loan debt problem, and its potential impact on the financial system.

While speaking to the Greater Boston Chamber of Commerce, Bernanke said the following:

"The student loan situation is a risk, but a different kind of risk. It is not going to destabilize the financial system."

We're a bit skeptical, as the situation seems to be getting worse out there, and even if he's right about the ownership of the debt, ~$50 billion is a lot at risk to commercial banks we suspect. We also would assume that the unintended consequences have a much deeper reach than just kids trying to buy cars and newly released banker books.

But hey, at least he was right the last time he wanted everyone to know the financial system wasn't at risk...

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