MARK CUBAN: 'The Student Loan Bubble Is Going To Burst'

[tpstulane]

http://www.businessinsider.com/mark-cub ... ble-2014-6

[jonathanjoseph]

Probably useful to include the second half of his statement "...and colleges are going to go out of business".

Also should include, as I've said repeatedly, that the burst will cause downward pricing pressure on tuition, which means that Cowen's doubling of tuition is the next piece of his brilliant strategy that will have to be aggressively reversed, after getting rid of athletics and engineering/CS.

[Green Wave]

[jonathanjoseph]

Very typical coming out of the Wilson Center. Just ignore reality and roll your eyes at it as if that will make it go away. Everyone else judges by wins and losses.

[Green Wave]

Very typical coming out of the Wilson Center. Just ignore reality and roll your eyes at it as if that will make it go away. Everyone else judges by wins and losses.

I am not in the Wilson Center.

[jonathanjoseph]

I am not in the Wilson Center.

[jonathanjoseph]

Meanwhile, WSJ columnist makes a clear case that paying for a private school education does not make economic sense via a series of Tweets. The basic premise is that if you take the cost of private school tuition and just earn stock market average returns for 40 years, you'll make more money than with having to repay any debt incurred while acquiring a degree.

https://twitter.com/carney

[Green Wave]

Meanwhile, WSJ columnist makes a clear case that paying for a private school education does not make economic sense via a series of Tweets. The basic premise is that if you take the cost of private school tuition and just earn stock market average returns for 40 years, you'll make more money than with having to repay any debt incurred while acquiring a degree.

https://twitter.com/carney

Where is an 18 year old going to get 100k free and clear to invest in the stock market?

What a load of crap!

How much is higher education worth in cold hard money? A college master's degree is worth $1.3 million more in lifetime earnings than a high school diploma, according to a recent report from the U.S.

That's straight dollars JJ what it does not factor in is the investment power you have in the last 30 years as opposed to a HS grad.

There are a bunch of dumb asses on the internet JJ try and not be one of them.

[jonathanjoseph]

Where is an 18 year old going to get 100k free and clear to invest in the stock market?

What a load of crap!

How much is higher education worth in cold hard money? A college master's degree is worth $1.3 million more in lifetime earnings than a high school diploma, according to a recent report from the U.S.

That's straight dollars JJ what it does not factor in is the investment power you have in the last 30 years as opposed to a HS grad.

There are a bunch of dumb asses on the internet JJ try and not be one of them.

You are so dumb its painful. Are you aware that an 18 year old needs $250K to obtain a Tulane degree? Where does the 18 year old get that?

Meanwhile, you are arguing against math and facts. You aren't fooling anyone.

[Green Wave]

Where is an 18 year old going to get 100k free and clear to invest in the stock market?

What a load of crap!

How much is higher education worth in cold hard money? A college master's degree is worth $1.3 million more in lifetime earnings than a high school diploma, according to a recent report from the U.S.

That's straight dollars JJ what it does not factor in is the investment power you have in the last 30 years as opposed to a HS grad.

There are a bunch of dumb asses on the internet JJ try and not be one of them.

You are so dumb its painful. Are you aware that an 18 year old needs $250K to obtain a Tulane degree? Where does the 18 year old get that?

Meanwhile, you are arguing against math and facts. You aren't fooling anyone.

Show me where the kid not going to school is going to be given 100k free of charge idiot. Not going to happen. Dumb ass scenario that makes no sense.

Tulane's tuition is 48k a year. Now how many people do you know walk into Tulane without any grant or aid packages?

Dumbest shit I have seen you post to date.

BTW. I make 6 figures and have so for 20 years. I would have never done that without my education. Translating Tulane's cost now to when I went to school paid for itself over and over again.

[Fred Dowler]

BTW. I make 6 figures and have so for 20 years. I would have never done that without my education. Translating Tulane's cost now to when I went to school paid for itself over and over again.

Are you making that money because of and directly because of what TU has done for you or more because of your own skills and abilities and career experience?

[OGSB]

There Are Now 50 Colleges That Charge More Than $60,000 Per Year

[OGSB]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

[jonathanjoseph]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

[Fred Dowler]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

[Green Wave]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

So you are pro AAUP?

[jonathanjoseph]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

What? He doubled the tuition, and unless Tulane has doubled it's annual operating margin than he has only cut areas of the budget in order to increase other areas of the budget.

[Green Wave]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

What? He doubled the tuition, and unless Tulane has doubled it's annual operating margin than he has only cut areas of the budget in order to increase other areas of the budget.

Oh no a rift in the dynamic duo? You had better call WaveDat to arbitrate.

[Fred Dowler]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

What? He doubled the tuition, and unless Tulane has doubled it's annual operating margin than he has only cut areas of the budget in order to increase other areas of the budget.

I am fairly certain that Cowen's marching orders from the Board circa 1998 were to cut costs and I have heard very much along those lines that indeed he went at it with a gusto from the beginning and especially during the earlier years of the regime.

Then, certainly the unfortunate events of 2005 and the restructuring in the wake of that had to have much to do with his ardent desire for cost-cutting -- he had the opportunity to carry everything out that he had reportedly been wanting to and could also claim special emergency powers with a declared financial exigency. Then...when you step back and take a good look at the effect of it (and don't forget that the AAUP had censured TU for how they were going about things circa 2006) what you see is that Cowen was able to have the more senior (more highly paid) faculty
essentially weeded out and probably replaced with more junior faculty who weren't making as much.

[jonathanjoseph]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

What? He doubled the tuition, and unless Tulane has doubled it's annual operating margin than he has only cut areas of the budget in order to increase other areas of the budget.

I am fairly certain that Cowen's marching orders from the Board circa 1998 were to cut costs and I have heard very much along those lines that indeed he went at it with a gusto from the beginning and especially during the earlier years of the regime.

Then, certainly the unfortunate events of 2005 and the restructuring in the wake of that had to have much to do with his ardent desire for cost-cutting -- he had the opportunity to carry everything out that he had reportedly been wanting to and could also claim special emergency powers with a declared financial exigency. Then...when you step back and take a good look at the effect of it (and don't forget that the AAUP had censured TU for how they were going about things circa 2006) what you see is that Cowen was able to have the more senior (more highly paid) faculty
essentially weeded out and probably replaced with more junior faculty who weren't making as much.

I don't know anything about that, but the financial statements show that the University's budget, on the whole, has gone up significantly under Cowen. If Cowen had spent the last 15 years cutting unnecessary, then Tulane would be well positioned to battle the education bubble as it needs to significantly cut tuition. If Cowen both doubled tuition and cut major expenses, then Tulane would be swimming in cash as a result. Of course, that's not the case.

[Fred Dowler]

After the Titanic struck the iceberg, the ship’s captain and senior executives were said to be unworried. How could their mighty ship sink? The hubris and arrogance of the ship’s captain and senior officers was astonishing. They seemed to believe that because they were handsomely recompensed, resplendent in their uniforms and saluted by their toadies, their little world would never end. While the passengers and lowly crew members were beginning to panic, the officers urged them to remain calm. They were confident that the ship was unsinkable and on course. The dining rooms remained open and the ship’s orchestra played on to soothe the foolish passengers and crew who prattled about an utterly impossible impending disaster. Unfortunately, more than a century later, the good ship Titanic remains at the bottom of the ocean. Some of her passengers survived but 1500 did not, victims of the captain’s decision to maintain course and steam full speed ahead despite numerous warnings from experienced crew members that there were icebergs in the vicinity.

College Presidents—New Captains of the Titanic

Clay Christensen always compares leaders in a dying industry to frogs boiling in the pot, not realizing what has happened until its too late. Cowen is way too self absorbed to realize the damage he's done.

That article talked somewhat about the need for cost-cutting on a lot of campuses, and one thing is for sure -- if Scott Cowen has been nothing else he's been the swinger of the budget axe at TU since the day that he walked in the door.

What's in question is the wisdom of where specifically the cost-cutting has been at TU and also what, since that article had some things to say about having a university's faculty have a lot of say in running things, TU's faculty might be saying. Remember that with the post-2005 Bold University Restructuring Plan TU ended up being censured by the AAUP.

What? He doubled the tuition, and unless Tulane has doubled it's annual operating margin than he has only cut areas of the budget in order to increase other areas of the budget.

I am fairly certain that Cowen's marching orders from the Board circa 1998 were to cut costs and I have heard very much along those lines that indeed he went at it with a gusto from the beginning and especially during the earlier years of the regime.

Then, certainly the unfortunate events of 2005 and the restructuring in the wake of that had to have much to do with his ardent desire for cost-cutting -- he had the opportunity to carry everything out that he had reportedly been wanting to and could also claim special emergency powers with a declared financial exigency. Then...when you step back and take a good look at the effect of it (and don't forget that the AAUP had censured TU for how they were going about things circa 2006) what you see is that Cowen was able to have the more senior (more highly paid) faculty
essentially weeded out and probably replaced with more junior faculty who weren't making as much.

I don't know anything about that, but the financial statements show that the University's budget, on the whole, has gone up significantly under Cowen. If Cowen had spent the last 15 years cutting unnecessary, then Tulane would be well positioned to battle the education bubble as it needs to significantly cut tuition. If Cowen both doubled tuition and cut major expenses, then Tulane would be swimming in cash as a result. Of course, that's not the case.

So apparently, after the settling of the dust, the highly controversial ending of Newcomb College did not translate to a great cost saving, after all, then?

Also, as regards the tuition, what may not be clear is exactly how much discounting TU is doing, although certainly they do a great deal of discounting -- no doubt that only a very few students' families pay full price -- and that's got to impact on the bottom line. I don't like how that is, i.e. that the true price information with college tuition is very often very obscured, but colleges have their reasons for wanting to have things be that way.

[Green Wave]

Has the bubble burst yet?

[Green Wave]

http://harvardmagazine.com/2011/11/bull ... e-colleges

http://harvardmagazine.com/2011/07/colleges-in-crisis

Tuition. Published tuition at private four-year colleges, the most maligned and misconstrued metric, escalated 50 percent, inflation adjusted, between 1990 and 2008. (By comparison, Standard & Poor’s reported that corporate executives enjoyed a 300 percent pay increase between 1992 and 2010, and a Duke economist calculated that salaries of football coaches at 44 public and private universities increased 650 percent in constant dollars during the past 24 years, while presidential salaries climbed 90 percent.)

Has the bubble burst yet?