[tigerthink]

Since education can't be resold, there isn't going to be the sort of bursting bubble you see in markets for other goods.

Let's say what the article predicts comes to pass and the demand for degrees goes down. If degrees could be resold, then college graduates would start selling theirs. You might get a proverbial "bursting bubble" as more and more graduates started panicking and selling their degrees before they lost all their value.

But since graduates can't resell their degrees, we're more likely to see a gradual decline in their price.

[natrius]

Sounds like a job for a financial engineer.

[krallja]

Yeah, the first question I have after reading this article is "how do I short higher education"?

[anthonyb]

A college saving fund: "Pay us $x/month for the duration of your child's high school education, and we'll fund them throughout their college degree."

You just have to make x low enough that people will sign up, but high enough that you make money. Of course, if the bubble doesn't burst, you get it "in the shorts"...

[adbge]

This post has me convinced that people should be able to buy and sell degrees on the open market.

[joe_the_user]

Those re-selling student-based bonds have been reselling education for a while now... and when one becomes unable to re-sell those, there will be a problem.