Morgan Housel

You still go to J.P.

Morgan and get a student loan, but it's priced differently and they want to know what degree you're getting.

But there's no federal student debt.

What would happen is tuition at private universities wouldn't be 75 grand today.

It'd be 35 grand or whatever it would be.

When you stimulate demand, but you don't increase supply, prices go up.

It's always going to be the case.

And what an unbelievable business model for schools.

You'd be like, we have 18-year-olds who can barely tie their shoes.

They're still technically, effectively children.

And they can sign a document and get 200 grand that they just funnel to us.

And we can raise the price by 20% next year and they won't even care.

They don't even, amazing business model.

So of course they did that and they build towers and sports centers and whatnot.

I think they're all well, by and large, well-meaning people, but the incentives of it were just so unbelievably broken.

Now I can give you the other side of the story.

If you look at debt interest payments and debt overall as a percentage of income, it's very low right now.

It's very low right now.

It peaked just during the financial crisis, 2008, 9, 10, where it was very high.

And it's been being chewed down ever since.