In 2008 the problem stemmed largely from liar loans for buying houses. Not so now. 10 years ago US rents tended downwards because new owner-occupiers were desperate to have renters to help with the mortgage. So, house prices rose while rents fell. After 2008 a large % of the 10m foreclosures were bought for cash by hedge funds (HFs). With ZIRP the HFs decided that it was more profitable to buy foreclosed properties and let them out at high rents than it was to write mortgages or flip the properties. Mortgages are hard to get and HFs have monopolised the rental market in many areas - so renting is also hard. So the banks are looking for more NINJAs to whom they can lend. Answer - government guaranteed student loans, which create spiv universities.

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