The economic crisis that wasn't

While most of the adult world shrieks in terror as the markets plummet by 40 percent, those of us with no investments simply snicker knowing that we will likely come out ahead in all of this mess. 

The absolute worst that the average college student could expect from this collapse would be that when the credit market dries up they will have a hard time getting student loans.  Despite how much has been made of the credit crash, it seems that Congress and the Federal Reserve will not let things get that bad. This leaves us with a market that is kind to students who aren't graduating in the immediate future. 

In part because of the falling gas prices, a blessing in and of themselves, prices of food and other essentials -- read: pizza and beer -- are dropping slowly as well. The last few years have seen an increase in inflation and the cost of living that disproportionately targeted college students (since most of us don't own property, whose value was also increasing and helped to off-set the cost of living increases). Now the talk if of possible deflation and that should please most college students.  

Deflation improves the value of savings, presuming that you have any.  But, more importantly for college students, it increases the buying power of your paycheck.  Large scale deflation will likely mean that when you go out looking for a job that you will be paid less, but you will be able to buy more with that less. The two should, ideally, cancel each other out.  In the here and now you might be able to afford another round of Woodchuck hard cider.

Finally, as an added bonus, by the time you have graduated, found a job and are looking to buy a house, the market will have stabilized, God willing, and you will be able to get more house for less money.  Much less money. In some popular job locations home prices have dropped around 40%.  Great news. Next us college kids can be home owners and face financial ruin alongside the rest of the country/world.