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Young Hollywood: Lights, Camera – Debt

A lot of people are burdened by student debt, including many of those who are just starting a Hollywood career.

Read this excerpt from a Nov. 5 Hollywood Reporter article:

"I owe $104,530 in student loans," says ...[a 33-year old] aspiring screenwriter who also works as a production assistant on a variety of film sets and as a bartender. "And it will be higher by the end of this call." ...

[This aspiring screenwriter] is a part of a growing contingent of young professionals trying to make their way in the entertainment industry while contending with six figures' worth of debt, illuminating Hollywood's increasingly high barrier to entry. More than one-third of the American population between ages 25 and 34 carry student loans, which in the U.S. now total $1.6 trillion. The graduating class of 2016 owed an average of $29,650, up 132 percent from the average debt of the graduates 20 years ago (according to an inflation-adjusted analysis of a federal study). Meanwhile, entry-level Hollywood assistant positions commonly pay $12.50 an hour (California minimum wage currently sits at $12), with pretax weekly take-home pay landing in the $650 to $700 range. While these wages have remained relatively flat for the past decade, monthly rent costs have increased 34 percent from 2011 to 2018 (the median cost of rent in L.A. is about $1,370; New York is $2,150). ....

David, 27, a Los Angeles-based assistant for an A-list writer-director who asked not to use his real name, owes about $250,000 in undergraduate and graduate school loans. "It's a scary thing, just sort of realizing there's not going to be a big income change in the near future based on how the way that system out here functions for assistant-level people," he explains. His backup plan is to move back to his parents' home in New Jersey and teach.

A key excerpt from Robert Prechter's Conquer the Crash 2018 provides insight into the ballooning student loan bubble:

The ultimate result of swollen lending is misery. A current example--which hasn't even imploded yet--is student debt. In February 2006, USA Today ran an article titled, "Students Suffocate Under Tens of Thousands in Loans." In May 2008, as the debt crisis and Great Recession were just getting started, the government force-fed its student loan program by ordering the Treasury to buy up student loans from private investors so they could go back out and lend that money all over again. Three years later, in May 2009, the same paper ran essentially the same article: "Student Loans Are Crushing New Grads." Versions of this report have appeared every few months until the present day, because the government won't stop spreading the poison of credit that jacks up the price of education beyond all other costs (except medicine, which state and the federal government intimately dictate) and saddles students with the difference.

Elliott Wave International's analysts expect the student loan bubble to eventually implode as part of a broad deflationary trend.

Now is the time to prepare by reading the free report, "What You Need to Know Now About Protecting Yourself from Deflation."

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