We have several other bubbles out there similar to the housing market that are just waiting to burst. Some should be burst on purpose in my opinion. Several examples I can think of off the top of my head:
Health Care Costs
Insurance Premiums and deductables (including medical, home owners, malpractice etc.)
Higher Education
All of these industries are way over priced and their high costs are causing pressure on the market in general. When there is no clear justification for extreme prices then eventually something gives and a correction occurs. Some if these industries are feeding on each other the same way the housing market was feeding off of lenders. A good example is medical costs and insurance. Each keeps raising because the other will support it - and a bubble occurs.
When insurance companies won't pay the high medical costs - the bubble will burst.
When students can't get student loans to cover the high cost of education - the bubble will burst.
Anybody got a pin?
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1 comment:
Looks like one of my predictions is about to come true.
http://www.usatoday.com/money/perfi/college/story/2012-02-08/student-debt-looming-economic-bomb/53010440/1
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