It seems our lives are an endless string of bubbles followed by bubble burst. Why is that? I'm asking. Let me know.
Well you heard it from me first. The next bubble is going to be Higher education. A recent article in US News & World Report pointed to big increases in MBA school applications. In the 24%+ range. A lot of this is expected to continue with the latest bubble bursts as out of work people and undergrads with no job prospects want to find a place to park. Not discussed was how do you pay for this. Can we continue to rely on the easy availability of college loans? Can middle class parents pull equity from their homes to send junior to grad school? Will US colleges reduce the tuition/fees that go up year to year at a rate way above inflation? Is it really worth the $'s?
You tell me. Personally I see the whole value proposition coming into sharp focus and we will see a bubble burst. The grant money that pays for tenured professors to travel to conferences world wide and study all kinds of meaningless stuff is going to dry up significantly or least have reasonable "bang for the buck" justification. Hell, we might even see professors teaching again when they can't hire armies of teaching assistants.