3 years after the crisis; will it happen again?
Its been 3 years since the crisis occured in late 2008. The Dow Jones had reached a low point of about 9,000 in 2008. The economy seems to be improving and prospering; the Dow Jones has blown past 12,000 in recent weeks. Unemployment levels are lower than before. Will something like this ever happen again? It probably will, according to Peter Thiel, Paypal’s co-founder and hedge fund manager. This time its not going to be related to your house, your car, or your private jet. Thiel is predicting that the next “bubble” will be in the area of education; as kids we have always been told that if we work hard and excel in school and then you will get into Harvard. Essentially, its been said that your set for life after graduation from college. But are you really? Investing in a college education has been always been one of the best investments that anyone could make, despite the fact that you may need to get loans. It has been getting easier and easier to get loans for a college education, simply because you have to pay it up no matter what happens. To me this looks exactly like the mortgage crisis; cheap and easy credit. American students have to now compete with candidates from other countries for the same jobs. What will happen if Ms. Sally cannot pay her $100,000 college loan because she can’t get a job at a financial firm? Defaults will occur and another panic will happen. Lets just hope its not any time soon ( I would say 5 to 6 years would be a good time, personally).