Fantastic job by Mark Cuban in his latest blog post, as he takes college education out to the woodshed. He predicts a meltdown in college education, along with the financing of it, drawing interesting parallels with the housing bubble.
It’s just a matter o time until we see the same meltdown in traditional college education. Like the real estate industry, prices will rise until the market revolts. Then it will be too late. STudents will stop taking out the loans traditional Universities expect them to. And when they do tuition will come down. And when prices come down Universities will have to cut costs beyond what they are able to. They will have so many legacy costs, from tenured professors to construction projects to research they will be saddled with legacy costs and debt in much the same way the newspaper industry was. Which will all lead to a de-levering and a de-stabilization of the University system as we know it.
And it can’t happen fast enough.
Read Mark Cuban’s fantastic rant on traditional college education here.
More on questioning the ROI of higher education:
- Bill Bonner: Misguided by Higher Education
- Peter Thiel on why he’s paying talented students to leave school
Also I recall Jim Rogers mentioning over the past year that he’d short the Ivies or similar elite institutions, but can’t find the exact piece. Rogers went to Yale, but as you can guess is not a fan of those in ivory towers, preferring those that travel and go see the world with their own eyes.
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