Monday, July 2, 2012

Greenspan's Body Count goes to college: Jason Yoder

When we think about Greenspan's Body Count, we usually think of homedebtors and real estate speculators.

But many of the unsung victims of Alan Greenspan's bubbles are education speculators instead. And they are largely young and naive:
One evening in 2007, Jan Yoder of Normal, Illinois noticed that her son Jason seemed more despondent than usual. Yoder had been a graduate student in organic chemistry at Illinois State University but after incurring $100,000 in student loan debt, he struggled to find a job in his field. Later that night, Jason, 35, left the family's mobile home. Concerned about her son's mood, Jan Yoder decided in the early morning hours to go look for him on campus, where a professor she ran into joined her in the search. The two of them discovered his body in one of the labs on campus and called campus police at 8:30AM. 32 minutes later, Jason was declared dead due to nitrogen asphyxiation.
Student loan debt is far more deadly than housing, consumer, or business debt because you can't go bankrupt on it. It will haunt you until your dying day. If you must use debt to pay for education, put it on your credit cards so you can go bankrupt immediately after graduation.

Greenspan's Body Count stands at 225.


Friends of the Coffee Bible Club said...

I think it is lame to put Greenspan's name on this. Just say it is the recession's / depression's body count. Greenspan warned of irrational exuberance. Really, in this democracy, everyone is responsible for the state of the nation's economy. Demonizing Greenspan is ugly and unproductive.

W.C. Varones said...

Greenspan was pushing easy money and intentionally blowing up the housing bubble to bail out his NASDAQ bubble a decade after his "irrational exuberance" comment.

When central planners claim they can manage the economy, they get responsibility for the disasters they create.