Sarah Mulholland at Bloomberg sat in on a conference call hosted by Albert Lord, the CEO of Sallie Mae. He’s sure there’s no bubble, he said. We’re just conditioned to see such things because of past experience. Normally, experience leads to wisdom and wisdom produces useful insight. But I think he just distrusts the kind of wisdom that comes from personal experience. All of the Americans burned by the stock and real estate bubbles didn’t get that knowledge from an officially accredited member of the college industrial complex and so that knowledge is suspect. In other words, we shouldn’t trust our own eyes but should wait until we pay outrageous tuition to learn officially vetted facts from an officially vetted knowledge source.
And what does the college industrial complex conclude? “We don’t see anything of any evidence close to a bubble,” he said.
But later in the article, he’s quoted as saying “I confess to being a bit wide-eyed myself at the $200 billion number.” That’s just the last two years of borrowing by the way. The bubble is growing ever faster.