luni, 13 februarie 2012

Data Visualization Principles: Lessons from Tufte

Data Visualization Principles: Lessons from Tufte


Data Visualization Principles: Lessons from Tufte

Posted: 12 Feb 2012 12:49 PM PST

Posted by MikeCP

When I began to practice SEO 8 years ago, I never would have guessed that I'd be writing a post about data visualization. Perhaps I might have foreseen myself writing about web analytics or information architecture, but data visualization seemed like something for the statistics fans. But today in web marketing, the emphasis on content has never been stronger, and it just so happens that one eminently shareable form of content is the data visualization. And I've come to love the crap out of data viz.

Edward Tufte giving a class

Another person that loves the crap out of data viz is Edward Tufte. 'ET', as he's sometimes referred, has been preaching the merits of quality data visualization since before the world wide web existed, let alone SEO. He has authored 4 books on the topic, is a professor of political science, statistics, and computer science at Yale University, and actually serves on Barack Obama's American Recovery and Reinvestment Act panel in order to provide transparency in the use of recovery funds. I was fortunate enough to catch him when he was in Seattle during his traveling seminar tour. I learned a lot that day, and have since learned quite a bit more through reading his and others' writing on the topic.

David McCandless's Information Is Beautiful Blog is a must-bookmark, and his TED talk below is a great data viz primer.

What's This Gotta Do With SEO?

Alright, enough with the intro. Let me quickly lay out what I hope this post will accomplish for the SEOmoz reader.

  • Understanding of what makes great data viz great.
  • Inspiration to think up and create (great) data viz for your company or your clients.
  • (Maybe slightly self-serving, but…) Influence readers to cast a more discerning eye on data visualizations.

So far I've yet to say it, but there's an elephant in the room. Infographics. The buzz around the word has reached a fever pitch. Yes, infographics are a form of data visualization, but there are so many ways that infographics are being abused that the backlash seems to be rightfully mounting. Are all infographics bad? Of course not. Just the bad ones.

So, Wait. Am I Gonna Get Links or What?

As I stated earlier, and as you've probably seen, data visualization is a super-effective and shareable form of content creation. Now stay with me here: In this post I'm going to detail some of the principles of great data visualization as per Tufte's teachings, with examples that fit the bill. As of the writing of this sentence, I've yet to pull link metrics for any of the examples I've got planned. By the end of this post, I'm hoping to prove to you (and myself, really) that Tufte's principles aren't just highfalutin, hoity-toity, stats nerd stuff, but a checklist for highly effective data visualization link building.

These principles to which I'm referring are discussed in the first chapter of Tufte's Visual Display of Qualitative Information

1. Show The Data

Well, yeah. There have certainly been successful "infographics" that don't actually display any real data, but that's not really a piece of data visualization, is it? The Trustworthiness of Beards by Matt McInerney comes to mind. Regardless, it's funny as hell and was viewed by everyone and their mom.

The Trustworthiness of Beards

No matter what the rest of this post says about data visualizations for attracting links, the bottom line is that if you've got a good idea that would be best be shared in graphic form, roll with it. Because this graphic was originally hosted on imgur.com, the link metrics behind it are a bit fragmented. The .jpg file itself has over 200 linking root domains in OSE, and according to the designer it was, "Viewed over 1,000,000 times and featured #1 on the reddit homepage, LaughingSquid, FHM, and the LATimes".

2. Provoke Thought about the Subject at Hand

Tufte's full thought on this:

Induce the viewer to think about the substance rather than about methodology, graphic design, the tech of graphic production, or something else.

Tufte wrote this originally in 1983, and while the spirit still holds, I think it should be revised for today's times, especially framed in the context of link building: Our data visualization should provoke thought AND influence the reader to share.

Data visualizations built around economic and social matters are surefire ways to get your audience thinking and also have an inherent shareability (a product of the times and the human condition, I suppose). David McCandless's The Billion Dollar Gram is a visualization that provides context to the incomprehensibly large monetary figures we hear in the media.

The Billion Dollar Gram

Despite not offering an embed code or dead-simple social sharing buttons, this visualization was a success: 2,801 tweets, 4,677 Facebook Shares and Likes, and 298 linking root domains.

Regarding the focus on substance rather than methodology, Tufte explains that the map makes a fantastic visualization medium because we've no reason to question methodology. A map is recognizable, allows us to put a lot of data in a small space, and displaying the data within allows us to easily understand and compare as needed. We'll see a map before this post is done.

3. Avoid Distorting the Data

It should go without saying that a great piece of data visualization should tell the story honestly. Pie graphs, and especially exploded 3D pie charts, are the favorite whipping boy of data viz geeks, often because of their distortion and lack of clarity ("chart-junk").

3D Exploded Pie Graph
Bad 3D Exploding Pie Chart

I can't believe I'm putting this in a blog post, but 'with great power, comes great responsibility'. Yikes, quick shower, hold on.

But, it is true. If you've got great data, do it justice by presenting it honestly.

NPR did a visualization about the makeup of the US military that took a ton of interesting data, and represented it in a variety of formats.

NPR military visualization

Did it work? Well, it didn't exactly kill it according to OSE (12 linking root domains, handful of tweets, and 700+ Facebook shares/likes), but I don't suspect a news organization like NPR makes much of a link building outreach effort.

4. Present Many Numbers in a Small Space

Charles Joseph Minard was a French civil engineer that created what Tufte calls, "The greatest statistical graphic ever drawn": A map of the Napoleon's Grande Armée's advance and retreat into Russia.

Minard Map of Napoleon's March

The graphic impressively manages to depict 6 different sets of data: latitude, longitude, direction of movement, time, temperature, and size of the army.

Obviously, because this is a graphic made in the 1800s, looking up link metrics would be a bit silly.

5. Make Large Datasets Coherent

Distilling down a big chunk of data is not easy, and the onus often falls on the designer. Tufte laments that the "lack of quantitative skills of professional artists" is what makes designing a great data visualization difficult. The best designed visualizations exist as a symbiosis between smart quantification and beautiful and elegant design.

David McCandless and Lee Byron made a graphic of Facebook post-break-up status messages by the time of year. Over 10,000 status updates in this pretty little graph:

Peak Break-Up Times

Some fun data, for sure, and people loved it. Open Site Explorer shows 92 linking root domains, 3,000+ Facebook shares/likes, and nearly 1,000 tweets.

6. Encourage Eyes to Compare Data

Though not necessary, interactivity makes comparing data in a visualization particularly fun and engaging. Sometimes the best use of a dataset is to present the viewer with the controls, letting them uncover things on their own.

Hotspots Superbowl Visualization

I had a lot of fun playing around with Hotspots' interactive display of Twitter buzz for this year's Superbowl ads. It's too new for link metrics, but I'm honestly surprised at the lack of social mentions: Only 29 shares/likes and 96 tweets?

7. Reveal Data at Several Levels of Detail

Many ambitious datasets call for a visualization that gracefully handles the large, 30,000 foot figures way down to the super granular, all while maintaining the proper spatial relations. This allows the viewer to explore the data; he or she understands the big figures quickly, but has the opportunity to pick out some of the more minute details.

This infographic by the Technology Review details the space launches by country. It's a two horse race between the US and the USSR/Russia, but it's pretty fun to see how other countries have done space launches as well.

Space Launches

Its links were split between the PDF infographic and the post announcing the infographic. All told, it's still one of the least linked-to (roughly 30 LRD) and socially mentioned visualizations (~300 likes/shares, 29 tweets) in this post, but as with the NPR visualization, there likely wasn't much link building outreach done.

8. Serve a Reasonably Clear Purpose

What's the hook? After brainstorming ideas for clients at Distilled, this is how we narrow down our options. If you're not telling a story to an audience that will care, you're destined for a piece of linkbait that'll fall flat. I could expend the effort to visualize, say, the number of fast food restaurants in Bergenfield, New Jersey (my home town - I cried when Roy Rogers was closed) over time, but who would really care?

We put together an interactive visualization for Food Service Warehouse that compared the average calories consumed per day with the percent of income spent on food broken down by country.

A visualization of the 20 highest and lowest calorie consuming countries compared with those same countries’ percent of income spent on food. Built by Food Service Warehouse.

The result was a successful infographic (still a bit new for link metrics, but 26 LRD including newyorker.com, one.org and heifer.org, to go with 2,000+ likes/shares, and 1,200+ tweets) that highlighted the food consumption and economic disparity throughout the world.

9. Be Closely Integrated with Statistical and Verbal Descriptions of the Dataset

While your data visualization should be able to speak for itself, every release should include a link off to the raw data, and some explanation of the how and why. Your writeup provides you with an opportunity to explain why your findings are important, as well as highlight other interesting findings. Sometimes your visualization warrants further explanation, but doesn't fit within the graphic itself.

Thomson Travel's How Music Travels - The History of Western Dance Music was a one-page interactive graphic, with further explanation and sources in the announcement blog post.

This data visualization was arguably the most successful of the ones in this post, with almost 250 LRD, 24,000+ shares/likes, and 5,000+ tweets.

In Conclusion

So if you follow each of these principles will you definitely succeed in getting links for your data visualization? Of course not.

It's important to remember that the data visualization is still just a medium for presenting (hopefully) interesting content, in the same way that the a blog might be home for a link bait blog post. Sure it helps to have a beautiful visualization or a crazy-awesome design for your blog, but it's still just a frame around what matters most.

Still, in the same way that your blog should follow some best practices for allowing maximum exposure like proper keyword research, social buttons, comments, etc., I'm hoping some of Edward Tufte's principles help improve the quality of your next great data visualization.


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Announcing the Budget, Answering Your Questions

The White House

Your Daily Snapshot for
Monday, February 13, 2012

 

Announcing the Budget, Answering Your Questions  

Today, President Obama will unveil his 2013 budget at Northern Virginia Community College in Annandale. You can watch the remarks on WhiteHouse.gov/Live at 11:00 a.m. EST.

Later in the day, Deputy Director of the Office of Management and Budget Heather Higginbottom will answer your questions about the President's budget during a session of the White House Office Hours on Twitter.

Watch the President's remarks and ask your questions about the budget.

Photo of the Day

Photo of the Day 0201312

President Barack Obama and Vice President Joe Biden talk with former Representative Gabrielle Giffords and her husband, Mark Kelly, after the President signed H.R. 3801, the Ultralight Aircraft Smuggling Prevention Act of 2012, in the Oval Office, Feb. 10, 2012. This bill is the last piece of legislation that Giffords sponsored and voted on in the U.S. House of Representatives. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog:

What They Are Saying: Preventive Health Care and Religious Institutions
On Friday, President Obama announced that his Administration will implement a policy that accommodates religious liberty while protecting the health of women.

Weekly Address: Extending the Payroll Tax Cut for the Middle Class
President Obama urges Congress to extend the payroll tax cut to prevent a tax hike on 160 million hardworking Americans.

President Obama Signs Rep. Gabby Giffords' Final Bill
The new law is designed to clamp down on ultralight planes that are used to smuggle drugs into the United States.

Today's Schedule

All times are Eastern Standard Time (EST).

9:45 AM: The President receives the Presidential Daily Briefing

11:00 AM: The President delivers remarks on his FY 2013 Budget to students at Northern Virginia Community College WhiteHouse.gov/live

1:45 PM: The President awards the 2011 National Medal of Arts and National Humanities Medal in the East Room; the First Lady also attends WhiteHouse.gov/live

WhiteHouse.gov/live Indicates that the event will be live-streamed on WhiteHouse.gov/Live

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Seth's Blog : Spout and scout

Spout and scout

Social media has amplified two basic human needs so much that they have been transformed into entirely new behaviors.

Sites have encouraged and rewarded us to spout, to talk about what we're up to and what we care about.

And they've mirrored that by making it easy to scout, to see what others are spouting about.

Please understand that just a decade ago, both were private, non-commercial activities. Now, they represent the future of media, and thus the future of what we do all day.

You're probably doing one, the other or both. Are you making it easy for your peers and customers to do it about and for you?

 

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duminică, 12 februarie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Athens Burning: Tens of Banks in Flames After Athens Passes Austerity Bill

Posted: 12 Feb 2012 05:30 PM PST

The Financial Times reports Athens passes demanded austerity bill.
Greek lawmakers on Thursday approved a tough austerity package aimed at averting a default, but the vote was overshadowed by violent street protests in central Athens and dozens of arson attacks against shops and banks.



The legislation passed by 199 votes in favour to 74 against, a convincing majority for Lucas Papademos, the caretaker prime minister who has been given the job of pushing through painful reforms demanded by the European Union and the International Monetary Fund in return for a second €130bn bail-out.
Athens Burning: Tens of Banks in Flames

From the Greek Streets reports Athens, the long night of February 12: "burning and looting tonight"
Tens of banks and other buildings are burning across Athens after today's demonstrations. There are huge riots in Thessaloniki and Patra as well. The situation seems to be spiralling out of control. We will try to summarise key developments through the night, below: .....



23.10 GMT+2 It is entirely impossible to estimate the number of people who have taken to the streets in Athens tonight. They are definitely in the hundreds of thousands – there are simply people everywhere.

23.07 GMT+2 The building of Marfin bank (the same building where three bank workers died on May 5, 2010) has been burnt to the ground.

23.05 GMT+2 A gun shop in Omonoia, Athens, has been looted.

23.02 GMT+2 Information about the alleged occupation of the town hall is confirmed: a group of people entered the building, only to be evicted and arrested by riot police a few minutes later.

22.42 GMT+2 The town hall of Athens has allegedly been occupied.

22.40 GMT+2 Police attack and cut off people in the Law school. At least 200 people are trapped inside.

22.30 GMT+2 At least 20 demonstrators and another 30 police have been injured during the day's clashes.
Promises No Longer Suffice

Earlier today Schaeuble warns Greek promises no longer suffice
Greek promises on austerity measures are no longer good enough because so many vows have been broken and the country that has been a "bottomless pit" has to dramatically change its ways, German Finance Minister Wolfgang Schaeuble said.

In a hard-hitting interview with the Welt am Sonntag newspaper, Schaeuble also said it is up to Greece whether the country can stay in the euro zone as part of its efforts to restore its competitiveness.

"The promises from Greece aren't enough for us anymore," Schaeuble said. "With a new austerity programme they are going to first have to implement parts of the old programme and save."

Schaeuble said there was quite a difference between Greece and other euro zone strugglers.

"The Greeks are a special case...The Portuguese government is doing a decent job," he said, adding that Portugal's problem is that the country needs more economic growth.
Greece a "Special Case"?

Give it time and Portugal and Spain will follow. Greece is in an economic depression (as are Spain and Portugal), and things are about to get much worse.

Greece's technocrat Prime Minister Lucas Papademos does not have the support of the people. His support has dwindled to nothing. Moreover, the political parties that passed this bill will not be in power after the next elections (assuming of course there is a next election).

Recall that Papademos is a puppet not voted into office by Greek citizens, but rather an unelected politician forced onto Greeks because he would do what the EMU and IMF want.

Greece is burning in every sense of the word. It is both politically and economically bankrupt yet Europe attempts to extract blood from a dried up turnip.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


China Instructs Banks to Roll Over $1.7 Trillion in Debt to Avoid Mass Default

Posted: 12 Feb 2012 09:59 AM PST

A few years ago local Chinese municipalities had little debt. Today they have a $1.7 trillion mountain of it, nearly all of it financing economically non-viable projects in the name of "stimulus".

The proposed "solution" of course is to roll the debt over, while adding still more to the debt mountain, hoping things will get better.

Please consider China tells banks to roll over loans
China's stimulus response to the global financial crisis saddled its provinces and cities with Rmb10.7tn ($1.7tn) in debts – about a quarter of the country's GDP – and more than half those loans are scheduled to come due over the next three years.

Since the principal on many of the loans is not repayable, banks have started extending maturities for local governments to avoid a wave of defaults, bankers and analysts familiar with the matter told the Financial Times. One person briefed on the plan said in some cases the maturities would be extended by as much as four years.
Extending Maturities to Avoid Default

A few more details emerge in China extends loans to avoid mass default
A mountain of debt is coming due and the principal is unpayable, so governments have agreed to extend maturities. This could be a description of a bail-out package for Greece. Instead, it is what China is doing to prevent scores of provinces and cities from defaulting on bank loans.

The flaws in China's fiscal system were savagely exposed during the global financial crisis when Beijing introduced a stimulus package that was largely implemented by local governments.

Lacking sufficient funding and prohibited from even borrowing money because of past excesses, provinces and cities created thousands of financing vehicles to get around the rules and raise capital in the quickest way possible. They tapped state-owned banks which, encouraged by Beijing, were happy to oblige with enormous loans.

From relatively little debt at the start of 2008, local governments finished 2010 owing Rmb10.7tn ($1.7tn). The national auditor has reported that more than a third of that debt will have matured by the end of this year.

"We are not talking about a cash flow problem. We are talking about a big cash shortfall problem," said Zhu Ning, deputy director of the Shanghai Advanced Institute of Finance.

Critics have pointed to dangers in the loan rollover plan. Repayment delays will hinder banks' lending abilities. Some bad loans will simply be prolonged instead of recognized. Problems will remain concealed.

Standard & Poor's has warned the extension would be a "backward step" for the Chinese banking sector that could "shake investors' confidence".
Eventually China Will Print to Cover the Losses

Most of these loans will never be paid back. Eventually China will just print money to make the banks solvent.

For more on the folly of loans to State Owned Enterprises (SOEs) from a Michael Pettis email, please see China Financial Markets: When Will China Emerge From the Global Crisis?

Pettis is working on getting his site back up at another service provider. The outage may be provider related rather than state related as I first suspected.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Obama Seeks to Prove He is More Like Romney; Obama vs. Romney - What's the Difference?

Posted: 12 Feb 2012 12:54 AM PST

Inquiring minds are reading Obama budget seeks to boost trade enforcement, ratchet pressure on China
President Barack Obama's new budget proposal will ask Congress to devote millions of dollars for a new trade enforcement center and more U.S. inspectors in China as the administration takes aim at unfair trade practices abroad, a senior administration official said Saturday.

It's all part of Obama's focus on boosting U.S. manufacturing and exports as he tries to win over voters and improve the economy in this election year.
Romney talks tough on China

CNN reports Romney talks tough on China
Calling the country a "cheater," Romney promised to impose a variety of trade restrictions if China doesn't comply with intellectual property laws and allow its currency to float freely in foreign exchange markets.

"I'll clamp down on the cheaters, and China is the worst example of that," he said as he presented his top ideas for job creation in Las Vegas.

"If they cheat, there is a price to pay," he added. "I don't want a trade war, but I don't want a trade surrender either."
Obama vs. Romney - What's the Difference?

If you like Obamacare, then vote for Romney or vote for Obama. It really does not matter. If you support war-mongering then vote for Obama or vote for Romney, it really does not matter. On Mideast policies,  it does not matter. On trade, it does not matter.

Other than a small number of social issues like abortion, it simply does not matter.

If you want a change, then vote for Ron Paul. Otherwise, let birth control and abortion be your guide because otherwise (as I have said repeatedly) President Obama and Mitt Romney are Nearly One and the Same!

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Seth's Blog : The sad irony of selfishness

The sad irony of selfishness

More often than not, the selfish person is insecure, fearful and filled with doubt. The selfishness springs from his belief that this is his only good idea, his last dollar, his one and only chance to avoid failure. "I need this, not you," he says, because he truly believes he's got nothing else going on, no other chance, no hope.

The irony, of course, is that selflessness (not selfishness, its opposite) is precisely the posture that leads to more success. The person with the confidence to support others and to share is repaid by getting more in return than his selfish counterpart.

The connection economy multiplies the value of what is contributed to it. It's based on abundance, not scarcity, and those that opt out, fall behind.

Sharing your money, your ideas, your insights, your confidence... all of these things return to you. Perhaps not in the way you expected, and certainly not with a guarantee, but again and again the miser falls behind.

(This is part of what Sasha's generosity day experiment is about.)

 

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sâmbătă, 11 februarie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


“Student Loan ‘Debt Bomb"; Obama's Misguided Proposal and Mish's Two-Point Alternative Proposal

Posted: 11 Feb 2012 11:11 AM PST

It's interesting to watch some of the terms bandied about in headline news. For example, the LA Times headline reads S&P says student loan debt could be next financial bubble.

Next? Could Be?

What with the word "next"? Also what's with the words "could be"? Without a doubt student loans are in a bubble and have been for many years. The source of the problem, as it always is with financial bubbles, is cheap money, loans to nearly anyone, and in the case of student loans, no way to discharge the debt, even in bankruptcy.

From the article ...
"Student-loan debt has ballooned and may turn into a bubble," S&P said. "There are more defaults and downgrades for some student loan asset-backed securities."

Federal and private student-loan debt is approaching $1 trillion and surpassed credit-card debt for the first time in 2010, according to Mark Kantrowitz, publisher of FinAid.org, a college grant and loan website. Under U.S. law, student-loan debt -- unlike credit-card borrowings -- can rarely be discharged in bankruptcy court.

President Barack Obama last month proposed linking federal aid to a college's ability to control tuition costs. The plan calls for increasing campus-based aid only for schools that limit tuition-cost increases and penalizing those that don't.
The Next "Debt Bomb"

The Huffington Post says Student Loans Could Be America's Next "Debt Bomb"
Growing numbers of Americans are finding themselves bankrupt, with their college diplomas partially to blame.

Slightly more than 80 percent of bankruptcy attorneys say the number of their potential clients with student loan debt have increased "significantly" or "somewhat" in the past three to four years, according to a survey by the National Association of Consumer Bankruptcy Attorneys. And there's little hope those debtors will get out of their obligations; 95 percent of bankruptcy attorneys surveyed said that very few student loan debtors will be discharged from their loan as a result of undue hardship.

"Take it from those of us on the frontline of economic distress in America: This could very well be the next debt bomb for the U.S. economy," William E. Brewer, Jr., president of the NACBA said in a statement accompanying the survey.

With so many college graduates burdened with so much debt, the potential for bankruptcies is huge. Nearly 25 percent of bankruptcy attorneys said they've seen potential student loan client cases surge by 50 to more than 100 percent, according to the NACBA survey. That despite the number of Americans that filed for bankruptcy overall falling last year, according to The New York Times.

Americans that graduated college with loans in 2010 owe an average of about $25,000 -- a five percent boost from the year before, according to The Project on Student Debt. In addition, because they faced an unemployment rate of 9.1 percent upon graduation they're at a disadvantage when it comes to paying back the loans. 
4 of 5 Bankruptcy Attorneys Report Major Jump in Student Loan Debtors Seeking Help

Inquiring minds may be interested in a link to Student Loan Survey taken by the National Association of Consumer Bankruptcy Attorneys (NACBA).

The NACBA survey of 860 bankruptcy attorneys nationwide found that:
  • More than four out of five bankruptcy attorneys (81 percent) say that potential clients with student loan debt have increased "significantly" or "somewhat" in the last three-four years. Overall, about half (48 percent) of bankruptcy attorneys reported significant increases in such potential clients.
  • Nearly two out of five of bankruptcy attorneys (39 percent) have seen potential student loan client cases jump 25-50 percent in the last three-four years. An additional quarter (23 percent) of bankruptcy attorneys have seen such cases jump by 50 percent to more than 100 percent.
  • Most bankruptcy attorneys (95 percent) report that few student loan debtors are seen as having any chance of obtaining a discharge as a result of undue hardship.

Titled "Student Loan 'Debt Bomb': America's Next Mortgage-Style Economic Crisis," the companion NACBA paper published today points out:

  • College seniors who graduated with student loans in 2010 owed an average of $25,250, up five percent from the previous year. Borrowing has grown far more quickly for those in the 35-49 age group, with school debt burden increasing by a staggering 47 percent.
  • Students are not alone in borrowing at record rates, so too are their parents. Loans to parents for the college education of children have jumped 75 percent since the 2005-2006 academic year. Parents have an average of $34,000 in student loans and that figure rises to about $50,000 over a standard 10-year loan repayment period. An estimated 17 percent of parents whose children graduated in 2010 took out loans, up from 5.6 percent in 1992-1993.
  • Of the Class of 2005 borrowers who began repayments the year they graduated, one analysis found 25 percent became delinquent at some point and 15 percent defaulted. The Chronicle of Education puts the default rate on government loans at 20 percent.

Obama's Misguided Plan to Fix the Problem

President Obama proposes to "fix" the problem by throwing more money at it. Instead, I propose the problem and solution is two-fold.

Two-Point Problem

  1. Guaranteed loans of any kind are a huge problem. An even bigger problem is guaranteed loans that cannot be discharged in bankruptcy. Schools have every incentive to drive up costs and to make loans to kids who simply do not belong in school at all,  as well as to kids whose benefit of education is far less than the cost of education.
  2. Lack of competition. We need more accredited universities that can offer online programs, at far cheaper prices.

Two-Point Solution

  1. Cancel the student loan program in entirety for new students and phase out student loans over the next three years for anyone already in such programs. 
  2.  Accrediting some online education programs say from India, would certainly go a long way towards massively increasing competition and reducing costs. Obviously some classes need to be hands-on type (lab work), but I am sure that can easily be arranged in conjunction with local colleges.

My proposal would get government out of the student loan business where it does not belong, while increasing free-market competition to dramatically drive down prices.

Obama's solution is to throw more money at the problem.

Recent Rise in Non-Revolving Loans

By the way, the recent reported rise in non-revolving loans was entirely due to a huge rise in student loans, further increasing the size of the problem.

Please take a look at Consumer Credit "Demolishes Expectations" Really? No Not Really! The "Non-Bounce" in Non-Revolving Credit for some very interesting graphs and comments on the rise in student loans.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Damn Cool Pics

Damn Cool Pics


Sneak Peak at the Greatest Toy in the Universe

Posted: 10 Feb 2012 09:13 PM PST



Jaimie Mantzel is heralding this prototype robot as the "greatest toy in the universe." After watching the video below, you may actually agree with him.

Not only is this 6-legged robot remote control, it's central area can be fitted with several different projectile-shooting modules. The two shown are capable of firing discs great distances, or ping pong balls at varying angles. There also seems to be a dart module that isn't demonstrated.

The only problem is the six legged robot does not have a name, Jamie has reached out to the internet and is asking for suggestions. If he picks your name for the toy he will send you a free one.