Several years ago, libertarian charlatans and Wall Street apologists like Peter Schiff were blaming government-subsidized loans as the reason for soaring college costs.
As usual, Mike Stathis debunked Schiff's misguided rhetoric.
In short, he explained that the real reason for escalating college costs was due to a pattern of predatory capitalism by Wall Street firms.
A little more than a couple of decades ago, Wall Street entered college campuses as investors, financing the construction of lavish projects, many of which were not needed. But these sharks convinced naive university officials that they could better compete with other universities by "updating" their facilities.
Even prior to that time, many universities had already begun to capitalize on their sports teams by selling out to big media firms. While these big media deals brought in more revenues to universities, it led to a greater emphasis on and thus higher spending for sports facilities.
Now read the following articles below which reiterate Mike's claims without specifically concluding that the private markets have caused much of the inflation in college costs.
Texas Luxury Student Dorm Financed by Bonds Falls Deeper Into Distress
"Colleges have privatized student housing projects to avoid taking on debt for new facilities, which represent one of the riskier corners of the municipal bond market. Such projects have come under pressure in recent years by the pandemic, which emptied campuses.
Ajay Thomas, the Austin-based head of public finance at FHN Financial Capital Markets, said colleges broadly are “struggling with the elevated needs to have facilities.”
'There is real competition for this increased enrollment or steady enrollment of students that are coming in.'"
Texas College Housing Complex With Rooftop Pool to Default
Mike goes over this discussion in the following videos.
In the first video below Mike focuses on the primary reason for excessive inflation seen in college costs over the past several years.
This article continues.
To continue viewing this entry please sign in to your Client or Member account.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.