In 2008, we had the housing bubble and the banking crisis both contributing heavily to our last recession. On the horizon, there are two new crises, student loans and government pensions.
The amount of student loans that are owed to the government has now exceeded $1 trillion; that leaves me speechless. If we had every individual who had borrowed money attend college and graduate, then we would be the envy of every industrialized nation. Unfortunately, that isn't the case. The majority have borrowed the money, attended college, but never graduated. Many never made it past their first semester and have no means to pay the borrowed money back. These individuals have defaulted on their student loans; truly, a crisis.
As for government pensions, the most recent estimate for unfunded pension liabilities for state and local governments exceeds $3.4 trillion dollars. On top of that, state and local government retirees have been promised health care in their retirement at an amount that exceeds $1.2 trillion dollars. Again, both are promised, but not funded at this point. I just read that in the state of California, it takes over 75% of their tax revenues just to pay for the salaries and benefits of state workers. Where is the funding going to come from to pay and support these retirees?
Ah wait, is that another hand I feel in my pocket? Bottom line is that both are unbelievable and they say health care is screwed up.