I read this article/ blog post, which touched on the cyclical nature of most agriculture. Basically, most farmers and ranchers get all of their income in a fairly small window of time, then need to use it for the rest of the year. There aren’t a lot of jobs or industries where this is such a common occurrence. Coupled with the fact that many of farmer’s costs are incurred during planting, then again as harvest approaches, this results in cyclical debt for farmers. Add in the long-term loans for land and capital, and it all adds up to significant debt. Continue reading Cyclical Debt: Agriculture and Interest Rates
Take a look at this ticker. Student loan debt is increasing by $2700 a second, with over $1.3 trillion American student loan debt (when I last checked). I’ve been wearing my student loan tin foil hat and ranting about a bubble for a couple years now. Think about it: 70% of students are graduating with some amount of debt and college attendance is increasing by about 0.3% a year since 2009. On average students are graduating with $35,000 in loans. The bachelor’s degree is now argued to be the new high school diploma. Being employable now depends heavily on your education, the higher the better – Continue reading Is There a Student Loan Bubble in the Not-So-Distant Future?