Government enacts more aid to students; colleges raise tuition

From: http://nakedlaw.avvo.com/2010/06/8-reasons-college-tuition-is-the-next-bubble-to-burst/

Tuition has been increasing at such an alarming rate that some say we’re witnessing yet another bubble in America — this time not in the stock market or in housing, but in college tuition.

Stephen Burd, of the Education Policy Program at the New America Foundation, explains in this interview how federal student loans became non dischargeable in bankruptcy in 1998, and then private loans became non dischargeable as well in 2005. Taken together, these laws mean that students who are overpaying for degrees now with borrowed money will suffer the consequences for life.

Here are 8 reasons to believe we’re in the middle of a college tuition bubble (that’s about to burst).

The price of gold is surging; why?

If you believe government reported data, gold should be dropping like a rock.
Let's examine Government reported data:

1) According to the consumer price index (CPI), inflation is under control at 2.3%. What's not disclosed in these data, are that the CPI no longer includes the price of food and energy which is better known as the ‘cost of living.’

2) Housing and real estate data are now showing a recovery. Realty Track just reported the first annual decrease in foreclosures in more than five years.

What's not reported by Realty Track is foreclosure filings are rising, but actual foreclosures are not. Today distressed homeowners have options and plenty of time. Some distressed homeowners stay in their home for up to 2 years without making a single mortgage payment. They can attempt to modify their loan and/or short sell their property, both options take months.

3) Decreased government spending. Treasury secretary Timothy Geithner recently reported promising news. Government bailouts for banks, automakers and other industries will cost tax payers $87 Billion Dollars, that's far less than expected.

What Tim Geithner forgot to state is the $87 Billion Dollars is only the direct and public injections of capital into those failing institutions. The real cost to the American tax payer is almost four times greater.

The fact is, the Federal Reserve is now issuing/creating Treasury Bonds (T-Bonds), out of the air at an alarming rate. They're in desperate need of capital to keep up with interest payments to our creditors, and for all the bailouts.