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I do not think anyone predicted the 2007 crash besides whoever is in the business of predicting crashes. The Prime Minister of the United Kingdom then declared

by Ardit20 16y ago

I do not think anyone predicted the 2007 crash besides whoever is in the business of predicting crashes. The Prime Minister of the United Kingdom then declared that he had eradicated the cycle of boom and bust. We all felt that it could only get better. Now if some guy is so smart, then perhaps there is something very wrong with our system of selecting the top banker, which is the governor of the Bank of England in this country. I would like however to suggest that higher education is very different from estate or technology. Higher education is slightly more like electricity or clean water. It is a necessity. The universities may charge however much they like, as may companies which provide electricity, because people simply have to bear it. Someone who is interested in exploring the world, even if that may be through such a low field as you suggest of sociology or psychology or indeed philosophy, will still be willing to take the grants that states provide in order to fulfil such desire. They think and so they may be right that they will indeed die and the aim as long as they live is to explore the reality of the life that they do choose to live. What is the nature of people, how could we be governed better.... What I am suggesting is simply that there is no bubble in education nor can there be. Whatever the number of people that are educated so the better it is. Education you see is very different to an eighteen year old than to someone who has gone through life so well perhaps and has the freedom to provide us his wisdom through the internet. That eighteen year old perhaps your have forgotten does not actually quite know yet who he is or the nature of reality. Higher education provides him a good grasp of that. What I would be much more worried of is the hierarchy in education, the only place where it is feasible and desirable for a communist system to be implemented in as far as providing all with the same standard of teaching and holding them all to the same standard. As for bubbles, there are no bubbles here. Nor will there ever be. Bubbles happen in the for profit sector. Not in the most basic service besides food and water that humans require.

byrneseyeview 16y ago
No, there were lots of people who don't explicitly predict crashes, who still called this one. Michael Lewis' The Big Short is a fun overview. The Greatest Trade Ever is also good; the protagonist of that one is a merger arb, not a doom-sayer. And of course, countless people sold when they found prices too high. It seems very obvious to me that the establishment has to buy into it for a bubble to exist. Prices peak when optimism peaks, so you'll necessarily be able to point to people in authority who were too optimistic. The only alternative to that is a) for prices to undershoot rhetoric (arbitrage opportunity!) or b) for prices to never go down (result: buying is a safe bet, causing a bubble, leading to a crash). What I am suggesting is simply that there is no bubble in education nor can there be. Whatever the number of people that are educated so the better it is. This is what we call a "Bubble mentality". No P/E too high; it's the Internet! No collateral too poor; it's the ownership society! You clearly don't believe that; you would not be happy if, e.g., we were starving because every farmer decided to finish his Masters in English lit. There is a right amount of education, and it is not an arbitrarily large amount. What I'm pointing out is that by every measurable quantity, we're paying more and more for something of less and less value. Education you see is very different to an eighteen year old than to someone who has gone through life so well perhaps and has the freedom to provide us his wisdom through the internet. That eighteen year old perhaps your have forgotten does not actually quite know yet who he is or the nature of reality. Higher education provides him a good grasp of that. Not sure what you're trying to say. I'm 23. Education is beneficial. That doesn't mean it's worth trading anything of value for any extra amount of it. It is precisely this kind of thinking that leads to other bubbles.

by Ardit20 16y ago

byrneseyeview 16y ago

No, there were lots of people who don't explicitly predict crashes, who still called this one. Michael Lewis' The Big Short is a fun overview. The Greatest Trade Ever is also good; the protagonist of that one is a merger arb, not a doom-sayer. And of course, countless people sold when they found prices too high. It seems very obvious to me that the establishment has to buy into it for a bubble to exist. Prices peak when optimism peaks, so you'll necessarily be able to point to people in authority who were too optimistic. The only alternative to that is a) for prices to undershoot rhetoric (arbitrage opportunity!) or b) for prices to never go down (result: buying is a safe bet, causing a bubble, leading to a crash). What I am suggesting is simply that there is no bubble in education nor can there be. Whatever the number of people that are educated so the better it is. This is what we call a "Bubble mentality". No P/E too high; it's the Internet! No collateral too poor; it's the ownership society! You clearly don't believe that; you would not be happy if, e.g., we were starving because every farmer decided to finish his Masters in English lit. There is a right amount of education, and it is not an arbitrarily large amount. What I'm pointing out is that by every measurable quantity, we're paying more and more for something of less and less value. Education you see is very different to an eighteen year old than to someone who has gone through life so well perhaps and has the freedom to provide us his wisdom through the internet. That eighteen year old perhaps your have forgotten does not actually quite know yet who he is or the nature of reality. Higher education provides him a good grasp of that. Not sure what you're trying to say. I'm 23. Education is beneficial. That doesn't mean it's worth trading anything of value for any extra amount of it. It is precisely this kind of thinking that leads to other bubbles.