Bubble #8: Cattle and beef futures: Cattle
futures are at an all-time high since November 1984, to $1.34 per pound from
slightly over a dollar a pound at the beginning of the year. Prices have spiked
because - over the past few years - farmers trimmed their herds due to droughts
and high feed costs that made cattle farming unsustainable. Now, supply lags
demand, but rising beef prices may slow beef consumption in favor of cheaper
alternatives such as chicken and pork. With feed prices dropping in 2013,
ranchers may start to build herds and stabilize supply and demand by the end of
2015 - so, again, a crash is unlikely.
Bubble #9: Student loan debt: Over the past
ten years, federal student debt has tripled to over $1 trillion in June 2013,
with default rates rising sharply since the financial crisis in 2007 with jobs
hard to come by for new grads. Default rates are up from about 5% in 2007 to
over 10% in 2012 and rising and even Ivy League grads are part of the growing
default trend.
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