As an aside to CAR,

Anyone who points their finger at one thing, GSE’s, congress, private lenders, greedy borrowers, Global pool of money sloshing…If you put your finger on one and say, that’s who did it. You are incredibly wrong. The GSE’s clearly played a big role. To insinuate otherwise is shockingly blind. Imagine for a second, that they did not exist, there was no fha, Fannie and Freddie, HUD, etc. would we have had the bubble? Hard to know, but they were clearly a key contributor.

Lets talk about a similar arena in which GSE’s are also prevalent.

Student loans…Arguably a bigger bubble in terms of YOY growth than the housing bubble…only it has yet to pop.

Do you think the infusion of easy debt and loan shark like collections rules has made a college education cheaper/more affordable? Has the infusion of easy debt made the quality of our education better?

further exposition.
http://www.studentloanjustice.org/problem.htm

Now is Sallie Mae solely responsible for the raping of “students?” Of course not. But are they a key contributor and are they “evil?” Probably!

I would contend that the same market dislocations and distortions done by the GSE’s of the education bubble are the same with the housing bubble.

It all comes back to the law of untended consequences. My first link.