An Airline Pilot Bubble?

Stephen Pope

Wednesday, April 13, 2011 at 07:54 AM ET

Verified

Key Takeaways:

Peter Thiel, a seasoned predictor of economic busts, asserts that higher education is the next major bubble poised to burst, attributing this to its overvaluation, intense societal belief, and the struggles graduates face with debt and job prospects.
Thiel actively challenges the traditional college path through his "20 Under 20" fellowship, which offers $100,000 grants for young individuals to drop out of school and start businesses.
The author extends Thiel's "bubble" concept to the professional pilot industry, questioning if the high cost of flight training still yields a sufficient payoff for aspiring pilots given current market conditions and debt burdens.
Despite the current challenges in higher education and the pilot industry, the article concludes on an optimistic note, highlighting that economic bubbles are cyclical and industries will eventually recover from their down cycles.

See a mistake? Contact us.

Peter Thiel, the hedge fund manager and PayPal co-founder, correctly foresaw the dot-com and subprime busts, so when he makes a prediction about the next big bubble that’s likely about to burst, people would be wise to at least listen to what the man has to say.

So where does Thiel think the next spectacular fizzle is apt to occur? Hang onto your hats: It’s that most sancrosanct of American Pie ideas, the notion that puting in your time to earn a four-year college degree will actually land you a decent job.