Rampant Education Bubble

not that you couldn’t have figured this out if you were deaf and blind and under the influence of half of the amount of crack charlie sheen burns for himself daily, but… Harvard’s Feldstein Says U.S. Economy Has Slowed as Consumers Cut Spending “Higher- and middle-income people felt pretty good” because of higher stock prices, Feldstein said. “They went and spent more money. But that doesn’t mean they will keep doing it.” The Harvard economist also said that congressional cuts in the U.S. budget won’t have much of an effect on economic growth. The debate centers around “plus or minus $30 billion or $40 billion,” he said. “That is not going to have a very substantial impact on aggregate demand and on GDP growth.” http://www.bloomberg.com/news/2011-03-01/harvard-s-feldstein-says-u-s-economy-has-slowed-as-consumers-cut-spending.html

@mar350, How is this related to an education bubble?

Zesty Wrote: ------------------------------------------------------- its obvious, its old, and its from harvard.

Obvious? Both Moody’s and GS beg to differ: http://www.washingtonpost.com/wp-dyn/content/article/2011/02/28/AR2011022802634.html http://blogs.abcnews.com/thenote/2011/02/goldman-sachs-house-spending-cuts-will-hurt-economic-growth.html

@mar350, I think there is a bubble on education bubble posts!

Zesty Wrote: ------------------------------------------------------- > @mar350, I think there is a bubble on education > bubble posts! agreed - since there have been regular posts i thought i’d parlay the concept and try for some subtle humor. NakedPuts Wrote: ------------------------------------------------------- $40 billion out of a $15 trillion economy is <3% and this is just the beginning discussion. whatever bill makes it to the floor will be tagged with earmarks and grants for states so the end game won’t resemble this preamble. Feldstein’s comment about people feeling rich because their stock prices are up is called the ‘wealth effect’ which is when people spend money because their percieved wealth has increased, its taught in econ 101. since that only lasted for two months, i don’t think it should take a prestigious degree to see that the economy is slowing (hence the lame post).

“Subtle” being the key word I guess.