Monday, February 22, 2010

Are College Degrees a "Bubble" Asset?

Debt Makes A Bubble

Two acknowledged bubbles have occurred within the past 10 years, the Technology/Nasdaq/.com bubble, and the housing bubble.

While each had different characteristics, they both had a common feature; an extra-ordinary growth of credit. Credit growth within a narrow asset class practically define bubbles.

Another defining feature is the growth of asset prices beyond rises in income.

So, Do We See This?

Yes. We do.

Valutarian's View:

My view is that since about 2001-2002, a college degree has cost too much, and delivered too little to qualify it as a "value" asset.

This is a very broad statement and caution should be applied to those who are pursuing degrees in professional and hard science fields.