Is College Education The Next Bubble Set To Burst?

When I saw this I said to my roommate, “Holy crap, you have to see this graph.”  For the record, never start a sentence to your roommate beginning with “you’ve got to see this graph”, it will follow you around.

Via Clusterstock

The price of a college education, compared to the CPI, has risen dramatically since 1980. It has outpaced the housing bubble, and has many of the same characteristics, including a government sponsored credit bubble.

And with competitive quality now in question compared to emerging economies like China, the value per dollar spent for that American college tuition may be even lower.

Chart from Carpe Diem (via Humble Student of the Markets.)

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2 Responses

  1. I realize there have been pretty well covered reports of colleges losing large amounts of money due to investments, etc. Any reports to speak of colleges walking away from mortgages on properties?

  2. damn, that graph is amazing. i have been wondering about that very thing.

    so many people are paying 30-40 grand a year for an education that cost half that 15 years ago.

    this will not end well.

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