Mike Stathis Revealed the Real Reason for Excessive College Costs Many Years Ago. The Media Proves Mike Was Right.

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.