One area of lending that is looking particularly risky right now is student lending. The costs of education have increased dramatically, and students are bearing the brunt of these huge debt loads in an economy that is not flush with high paying jobs for recent graduates. Just as healthcare costs are a concern for our economy, I believe that education costs should be evaluated on the same level. There are a number of schools that have tuition costs that are simply unwarranted when one looks at the salaries that graduating students are obtaining. While the focus has been on the for profit sector, I'd be surprised if the success rate from private schools is that much better given the weak economic environment. Lenders should really buckle down in this area, and students should carefully consider whether or not they really can afford that college tuition.
Disclosure: I am long JPM.