NIA On Why America's College Bubble Is Next To Burst

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Sun, 05/08/2011 - 12:17 | 1252961 TexDenim
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So true. Half the warm bodies in college right now are much too dumb to be there. Who among us believes that everybody was meant to get 16 years of education before starting life? What a crock! What happened to plumbers and carpenters and ditch diggers? They're busy getting Russian Lit degrees so they can do their jobs? I don't think so.

Sun, 05/08/2011 - 12:45 | 1253049 natty light
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"Looks like I might not have enough money to go to college."

"Well, the world needs ditch-diggers, too!"

Sun, 05/08/2011 - 12:55 | 1253066 66Sexy
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Pity that education is worthlesss today. With respect to an economic solution: it provides NONE.

And to actually be in debt for a bachelors degree in history or psychology, or a MBA? Waste.

Sun, 05/08/2011 - 13:21 | 1253136 Id fight Gandhi
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MBAs are a waste. It's by far cheaper though much harder to get your CFA and actually have some useful knowledge.

Sun, 05/08/2011 - 13:34 | 1253157 WeekendAtBernankes
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Hadn't heard of the CFA.  Thanks for the heads-up.

Sun, 05/08/2011 - 14:20 | 1253286 dark pools of soros
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CFA??   Goldman only hires guys working the shell game on the boardwalk

Sun, 05/08/2011 - 18:14 | 1253892 Anonymouse
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A coupld of years ago, some guys at Morgan Stanley said they are consciously de-emphasizing MBAs and preferring to promote analysts from within.  This was all pre-GFC though, so not sure if that still is true

Sun, 05/08/2011 - 14:58 | 1253385 Id fight Gandhi
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Some MBA programs are working in material so you can go through the chartered financial analyst program.

In an MBA you can usually coast thru an get a degree. CFA you need a 4 year degree, 4 years of qualified work experience.

There's 3 exams you take can only take 1 once a year and success for passing is less than 40%.

The problem is much of the work you're doing is on your own. The exams and study guides are useful to gain some knowledge even if you're not going to get the CFA.

Best part is it can be all done for a couple grand and you know way more than any MBA.

Sun, 05/08/2011 - 18:10 | 1253889 Anonymouse
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I have MBA (Chicago) and CFA.  CFA was like year 1 of B-School.  Year 2 went beyond that.  But it is cheaper and more practical.  But for job changers (like I was), MBA got my foot in the door so I could get the work experience required for CFA.

Sun, 05/08/2011 - 21:34 | 1254313 Libertarian777
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interesting that you say this, since my experience (still busy with my CFA studies), is CFA is, as its title states, a 'financial analyst' course.

I find it hard to believe the first year of B-school would equate to the entire CFA curriculum. I haven't done an MBA yet (only have a postgraduate in Accounting/Finance), but the various syallabi I've looked at discuss things like international management, trade, etc. and not as much quantitative analysis as CFA, so not sure how one can compare the two.

Mon, 05/16/2011 - 18:35 | 1280927 Anonymouse
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Well, I went to Chicago which is a quant school.  Also, you design your own curriculum (subject to some topical requirements) so I made mine heavily finance oriented.  So in fairness, mine may not be the typical case

Mon, 05/09/2011 - 09:51 | 1255231 Sausagemaker
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I have an MBA and it has served me well.

I once had an economics professor who said that an education is the most expensive thing that people are willing to pay for but not actually get. He said you would never go into a Honda dealer, give them $25 grand, and leave without your car, but many students will pay for an education that they don't get.

That lecture changed how I looked at education. I graduated top in my class and have been reasonably successful. However, I can tell you there were many people that graduated with me who didn't learn a damn thing.  

Mon, 05/16/2011 - 05:11 | 1278406 alpha60
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great story, hansel.

Sun, 05/08/2011 - 14:11 | 1253262 Beancounter
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Totally agree - a CFA is far more scarce and demanding than any MBA program.

Sun, 05/08/2011 - 19:18 | 1254031 downwiththebanks
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Close all business schools:  they're nothing but factories spewing bad math and dumb propaganda for dead ideas that never worked in the first place.

Mon, 05/09/2011 - 00:22 | 1254642 Freddie
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CFA? So they can tell us how important modern portfolio theory is and how to read balance sheets?  I realize that the CFA program is very good and not easy.  However - do they discuss how it is all manipulated and how to develop a portolio when you have a corporate facist Mussolini state under a usurper?   How did you add alpha under Mugabe II?

Or how does a portfolio manager deal with fat fingers, HFT, insider trading, bear gangs and other manipulation.

Every 5 years or so, out of the blue, I would get a call from a money manager. He mainly managed his own dough. He had come to the same conclusion that I did.  General Electric is a ponzi fraud and is bankrupt.   I am not sure if he was a CFA but he could run circles around most of them.  About 18 months ago the Kenyan backstopped their worthless commercial paper before they were about to be fed to the CDS sharks.

I have seen reports from CFAs,who with a straight face,said GE was a solid company.  The point is most CFAs are whores and liars like everyone else now.  The value of a CFA has also been watered down.

Loads of Democrat idiots here blame Bernake and the not-so-secret banking cartel/Fed while they never mention their golfer, serial liar and most likely CIA cut out.


Sun, 05/08/2011 - 13:08 | 1253103 PolishHammer
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1000 bucks you miss that putt!

Sun, 05/08/2011 - 22:52 | 1254467 Old Poor Richard
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Gambling is illegal at Bushwood, sir.

Sun, 05/08/2011 - 15:56 | 1253563 chubbar
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+100 for the Caddyshack reference.

Sun, 05/08/2011 - 13:30 | 1253155 WeekendAtBernankes
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Great insight Tex.  Tyler's "college-industrial complex" is an apt description -- although the "college-government complex" may be more accurate.  They aren't encouraging kids to go to trade-schools.  Trade-schools are for losers and idiots, or so the myth goes.  This myth will likely self-correct as the result of a combination of boomers retiring from the manufacturing sector and young adults with  useless Liberal Arts degrees.

There seems to be a correlation between the establishment of this bubble, the decline in trade-school educations, the decline in quality public K-12 education, monstrous and ever-increasing education budgets with no or negative returns in value, and the establishment of the Federal Dept. of Education in 1979.

Like military spending, the notion of education spending as a sacred cow is a dangerous and unsustainable precedent to set.  The hagiographication of educators and especially the government and union (education) bureaucrats has not helped the situation in the slightest.  The myth that public servants are immune to greed is a dangerous one indeed.  As the bubbles continue to burst and the economy continues to decline, more and more Americans will be forced to awaken to the reality of our situation.

Sun, 05/08/2011 - 13:53 | 1253206 oddjob
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As a ticketed plumber, I laugh at the losers that waste money on a useless education that will end up leaving them in the poverty before they even get a job.


Sun, 05/08/2011 - 14:05 | 1253241 topcallingtroll
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All the kids who dont go to the university want to be a mechanic.

I keep telling all of my kid clients to consider plumbing. It can be much more lucrative.

Sun, 05/08/2011 - 14:09 | 1253253 oddjob
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A career as an Electrician or Pipefitter is equally as lucrative.

Sun, 05/08/2011 - 14:25 | 1253288 dark pools of soros
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Strippers do even better

Sun, 05/08/2011 - 14:32 | 1253315 oddjob
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That's cuz all the plumbers are there after work!

Sun, 05/08/2011 - 16:09 | 1253588 dark pools of soros
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until they marry one!!

Sun, 05/08/2011 - 17:56 | 1253842 tmosley
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Who says you can't do both?

Sun, 05/08/2011 - 14:53 | 1253358 tickhound
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"Soon I'll be on fries; then the grill. And pretty soon, I'll make assistant manager, and that's when the big bucks start rolling in."

j/k... But had to do it.

Actually agree, there's nothing impractical about well paying "practical skills"

vs "fancy financial product creation" or jobs servicing it or some off-shoot symptom.

Looking forward to government backed loans for "technical college"... in its continued efforts to "help" 

..could be a trade in there somewhere

Sun, 05/08/2011 - 14:29 | 1253301 Slartebartfast
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I work for this industry and have been looking for objective evidence of this bubble bursting for years - with no success.  Every year the college loan industry makes it easier and easier, and the boomers are so completely brainwashed into believing they MUST provide a college education for their kids at ANY cost, that more kids show up every year no matter how bad the resulting education and how high the price.  It continues to amaze me.  

Sun, 05/08/2011 - 15:34 | 1253500 litoralkey
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Here is your first sign that the college-industrial complex is retrenching:,dc

Washington Post profit down 67 percent

(excerpt) The Post Co. said education division revenue fell 10 percent to $640.6 million on lower student enrollment at its Kaplan schools.


Sun, 05/08/2011 - 15:34 | 1253502 newworldorder
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Its not just the parents fault. Most guidance counselors at most High Schools have become shills for the college bound industry. The game starts as early as freshman year in HS. Its one big funnel designed to dump 75%+ percent of HS graduates into college campuses. All endorsed by every politician who ever approved a single dollar for education. This after all is another in a long line of American success stories. Why ruin a good thing by looking too hard at it?

Sun, 05/08/2011 - 18:37 | 1253940 New_Meat
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Don't forget the game of the teachers, police, etc. (at least here in the people's Commonwealth) where e.g. an elementary school principal who has earned her "Doctorate" (and commands all to be addressed as "Dr. Smithers") has a) contributed to the ponzi while b) done rote work that results in c) an increased number of feathers in her nest.

wrt police viz:

fraud and default widely noted among the "for-profit" "Universities" [that research is left to the motivated student].

But Sallie has to be fed too, because "education" is an "INVESTMENT" that we can't defer.

- Ned

{I almost wish I hadn't read Lackoff's pink elephant book--I retch every time I hear "Investment".}


Mon, 05/09/2011 - 17:03 | 1256897 LaLiLuLeLo
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My year, the US HS graduating class in 2006 was the largest in history and the universities knew that the gravy train was at its peak. now they are simply trying to get more out of the dwindling reserves of brainwashed kids. Hopefully this report will end this sick SICK cycle.

Sun, 05/08/2011 - 14:31 | 1253313 Hulk
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Agreed TexDenim, 16 years of education before starting life is complete bullshit and THE most boring thing I have ever done...what a fucking waste of a young life...

Sun, 05/08/2011 - 17:27 | 1253787 legal eagle
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BUT, today with an effective 20 percent unemployment rate, only 4.5 percent for college grads and less than 1 percent fir folks with advanced degrees.

Sun, 05/08/2011 - 18:20 | 1253911 Huckleberry Finn
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I agree. I am currently in college, and I would say 50% of college students should not be in college. Yet, this is partly the high school education system fault too. They push and push students to go to college just so their numbers look good. I remember my high school days, they made it seem if you weren't going to college you were a failure in life. Neither of my parents went to college, and they are doing better than 95% of Americans.

Sun, 05/08/2011 - 12:25 | 1252982 JulianTrader
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Fraternity Conspiracy, BitcheZ!


Sun, 05/08/2011 - 12:29 | 1252994 cosmictrainwreck
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yesh.... it's the "college experience" that ish so important in developing a "well-rounded" life. besides, how else ya gonna pay for maintenance on all those old brick buildings and salaries for the prof's & admin? talk about a mo-mo situation... 

Sun, 05/08/2011 - 13:35 | 1253168 WeekendAtBernankes
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lol ikr

The only reason half the L.A. degrees exist at all is to make the professors employable.  At my University I'm forced to take 3 credits in an "approved" gender-diversity curriculum.  Some would say this is due to political correctness.  I say it's due to a useless department that would collapse under the weight of its own sheer irrelevancy if we weren't forced to pay for their classes.

So yeah, "Economics of Race and Gender" it is, for me.  Whoopie.  Thank goodness I'm learning marketable skills.


Sun, 05/08/2011 - 14:27 | 1253295 dark pools of soros
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but what about college football and basketball and cheerleaders??  you all hate america!!

Sun, 05/08/2011 - 16:22 | 1253610 jeffgroove102
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You have probably heard it a buzzillion times, but that avatar and name is hilarious.

Sun, 05/08/2011 - 19:35 | 1254061 AurorusBorealus
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These "gender" wars are actually the crux of what goes on in the university.  Many of the women professors on university campuses teach no useable subject.   The only purpose of their "studies" in history, sociology, "gender" studies, anthropology, english, and so forth is to persuade everyone that women have been repressed for 6000 years of human history and therefore the university should hire more women (and pay women more).  In effect, most women professors get paid only to tell everyone that they should get paid. 

Sun, 05/08/2011 - 12:25 | 1252989 raya123
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NIA is a pump and dump scam.

Sun, 05/08/2011 - 12:45 | 1253042 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I can see your lack of edcycation hasn't hurt ya none sock puppet!


Tuco Benedicto Pacifico Juan Ramirez

Sun, 05/08/2011 - 13:40 | 1253172 WeekendAtBernankes
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Nice alias.  Tuco's the best.  Although having a cord tied to your revolver that could prevent the hammer from striking the cartridge at a critical moment may not be the savviest tactical decision.

Sun, 05/08/2011 - 18:21 | 1253914 raya123
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I'm actually an attorney.

Sun, 05/08/2011 - 12:56 | 1253078 LowProfile
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Unfortunately, your overweening douchebaggery thoroughly negates your asinine allegation.

Sun, 05/08/2011 - 18:23 | 1253922 raya123
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Sun, 05/08/2011 - 19:57 | 1254111 OldTrooper
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Is that some kind of legal term?

Sun, 05/08/2011 - 18:49 | 1253973 Bendromeda Strain
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You may think the allegation is asinine, but it isn't baseless. But in case you are Lebed's mother, Happy Mother's Day.

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