posted on Apr, 15 2009 @ 06:55 PM
A few years ago, I noticed that tuition increases were consistently outpacing inflation, and this lead to the obvious conclusion that, if this
persisted, then a bubble would form and inevitably burst. Living a block away from a State University, I've noticed that enrollment has completely
plunged in the past six months, and this made me start to think about whether we may be on the brink of the bubble bursting. Later, I found a few
others who felt like it was.
One such forcaster is Gerald Celente, who has predicted a collapse of the college market, along with the housing-market, commercial real estate
market, and credit card market. Another is American Consumers Newsletter, who wrote of the
College Market Bubble
Prices are high and rapidly rising. Millions are clamoring to buy. Many are taking on debt to cover the cost. A stock market bubble? A housing
market bubble? No, the college market bubble.
A speculative bubble occurs when the price of a product or service exceeds its fundamentals, yet excessive numbers of buyers keep driving up the
price. This is happening in the college market today. The fundamentals of a bachelor's degree--greater lifetime earnings, ticket to the middle
class--have long been worth the price. But that era may be ending. Is a college education still worth the cost? Yes, but the returns are diminishing,
and they are no longer guaranteed.
(More at link)
With this in mind, I'd like to start a thread where we can post news, theories, and anecdotal observations that can give us an idea of if/when this
bubble will burst, and how bad it will be. I'll get the ball rolling...
Enrollment drops at Private Colleges, including
And the whopper today: Florida State University may cut 21 programs, lay-off faculty, close
Panama City campus.
(Hat tip to RetinoidReceptor on the FSU news).
[edit on 15-4-2009 by theWCH]