The Wall Street Journal has a story about a Medical Student who now owes over $555,000 in student loan debt. Michelle Bisutti originally borrowed $250,000 to cover medical school, but her balance quickly ballooned as she deffered loan payments and defaulted during her residency.
While student loan debt of $500K is rare, balances of $100K+ are becoming more and more common.
A few key points Mankiw makes:
Here is the full article in the NY Times.
Statistics students are aware of the bias that wording has on poll results. Here is an example of such an effect.
Note that majorities in both wordings support the right of gays to serve; the biggest difference is in the “strongly support” number.
Hat Tip to Marginal Revolution.
CengageBrain.com has launched a textbook rental service with over 1,200 titles available. Hat Tip to my favorite economist on this one. And yes, his textbook is also available for rental.
A study conducted by CEOs for Cities suggest that neighborhoods that are accessible to amenities, services, and public transportation by foot, command higher housing prices than those that are not. The website Walkscore.com actually rates neighborhoods from a scale of 1-100 based on their walk-ability.
Conway has an average score of 43 and my apartment has a disapointing score of 5. Meanwhile a friends apartment in Burbank, CA scores an impressive 75.
This NY Times article makes a case that people who owe significantly more on their mortgage than their home is worth might be better off to walk away, even if they can afford the payments. The Wall Street Journal ran a similar article a few weeks ago.
The idea is that many people who bought homes with little or no down payment during the market’s peak could walk away and rent a similar home for a fraction of the price. The additional savings could significantly increase their financial well-being by sacrificing their credit.
John Courson, the president of the Mortgage Bankers Association disagrees and questions what kind of “message” homeowners who voluntarily walk away will send to family, kids, and friends. He correctly cites that foreclosures futher depress surrounding home prices.
I have often told my friends and colleagues that the I disagree with the idea of home ownership being the American Dream or a path to personal wealth. I have cited that even in the best markets, the actual rate of the return in too low. Home ownership also makes the workforce less mobile which causes other problems for our economy. Brett Arends of the Wall Street Journal agrees.
Story courtesy of Yahoo.
Francesca Di Meglio at Business Week thinks it is possible.
Philip Delves Broughton, who received an MBA from Harvard… calls the three-letter acronym “scarlet letters of shame,” and suggests they stand for “Masters of the Business Apocalypse.”
Ouch! Is it too late for me to switch to the MAC program.