We look back now in hindsight and say “Of course there was a massive housing bubble back in 2008 that had to burst at some point” — because with hindsight, the bubble was clearly visible.
We are in the middle of an even bigger “higher education bubble” right now. Students are borrowing tens of thousands of dollars for degrees (with the exception of the ‘hard sciences’ like engineering and chemistry and some business degrees) that are worthless. That only qualify them to work the counter at the Enterprise Rent-A-Car desk at the airport.
This bubble is going to burst in the near future….and the fallout will be very ugly. Because the total outstanding student loan debt is currently $1.3 Trillion….higher than all the outstanding credit card debt in America.
Let that fact sink in for just a moment. And not everybody with a student loan gets their degree in the first place — almost half drop out of college with nothing to show for their attendance but those outstanding student loans.
Do you think parents and the students themselves will continue to incur the massive debt required to get a worthless college degree? I don’t — and when that day comes….the bubble will burst.