College education bubble ready to pop - Bryan Eastman, Central Florida Future

Peter Thiel has many impressive points on his résumé: Yale law graduate, co-founder of PayPal, venture capitalist and hedge fund manager. A bubble occurs when a product is valued at many times higher a rate than what it is actually worth. "A true bubble is when something is overvalued and intensely believed," Thiel said. This was true of Internet stocks: investors believed the price could never fall since the Internet was such a new and hot commodity. Investors continued to throw money at it, until eventually the whole system fell apart and left the economy reeling for years to come. The same was true of the housing bubble; investors believed that house prices could never fall, so they gave more and more mortgages to worse and worse creditors until that sham also fell into ruins. Thiel believes this is true of college education as well — way overvalued and overrated.