What College Bubble?

An interesting factoid:

The number of PhD recipients on food stamps and other forms of welfare more than tripled between 2007 and 2010 to 33,655, according to an Urban Institute analysis cited by the Chronicle of Higher Education. The number of master’s degree holders on food stamps and other forms of welfare nearly tripled . . . → Read More: What College Bubble?

It's Definitely a Bubble

Source That jump in the lower line is pretty much all student loans.  And whenever the government is loaning out money, you can bet that the direct recipients are in the middle of a big ol’ bubble.

The Emperor is Naked: David Stockman

A “paralyzed” Federal Reserve Bank, in its “final days,” held hostage by Wall Street “robots” trading in markets that are “artificially medicated” are just a few of the bleak observations shared by David Stockman, former Republican U.S. Congressman and director of the Office of Management and Budget. He is also a founding partner . . . → Read More: The Emperor is Naked: David Stockman

The Denial on Housing in Spain

I am sure many of my readers will have caught this Bloomberg piece earlier this week, but if you haven’t it is a brilliant piece of journalism by Bloomberg reporters Sharon Smyth, Neil Callanan and Dara Doyle. The story takes us to Spain and Ireland and the former’s denial with regards its housing market.

. . . → Read More: The Denial on Housing in Spain

Education Inflation

Paul Krugman is aghast at this chart, which shows how the Pell Grant has declined in relative cost coverage:

This is pretty much how inflation works. In the early stages, its effects are not very noticeable because an incentive has not yet taken place. As the incentive shift takes place—marking the beginning of a . . . → Read More: Education Inflation

A Third Option

Karl Denninger:

In many ways the monetary policy issue is even more important, simply because we are running out of rope on our national debt-addiction rappelling adventure and the floor is still 100′ down.  That’s a serious problem — and “gold standards” do not (in fact cannot!) fix it.  The only fix that works is to demand and enforce a . . . → Read More: A Third Option

Compelling Proof of the College Bubble

From the New York Review of Books:

In Academically Adrift, Arum and Roksa paint a chilling portrait of what the university curriculum has become. The central evidence that the authors deploy comes from the performance of 2,322 students on the Collegiate Learning Assessment, a standardized test administered to students in their first semester at . . . → Read More: Compelling Proof of the College Bubble

Uncomfortable times in real estate in store?

Patrick Chovanec has a fascinating article in Foreign Affairs, titled China’s Real Estate Bubble May Have Just Popped. This is interesting and important from two points of view.

First, bad news for China is bad news for the world economy. We are already in a bleak environment, with difficulties in Europe, Japan, the US, . . . → Read More: Uncomfortable times in real estate in store?

Signaling and the College Bubble

From Bryan Caplan:

Many educators sooth their consciences by insisting that “I teach my students how to think, not what to think.” But this platitude goes against a hundred years of educational psychology. Education is very narrow; students learn the material you specifically teach them… if you’re lucky.

Other educators claim they’re teaching . . . → Read More: Signaling and the College Bubble

Can the Perceptions of Participants Influence Market Fundamentals?

“Reflexivity can be interpreted as a circularity, or two way feedback loop, between the participants’ views and the actual state of affairs. People base their decisions not on the actual situation that confronts them but on their perception or interpretation of that situation. Their decisions make an impact on the situation … and changes . . . → Read More: Can the Perceptions of Participants Influence Market Fundamentals?