Friday, August 6, 2010

For Profit College Going DOWN

A dire prediction about the for-profit education industry being the next big bubble in this article about Steve Eisman who made 2-3 boatloads of money shorting the market before the big collapse.

"Until recently, I thought that there would never again be an opportunity to be involved with an industry as socially destructive and morally bankrupt as the subprime mortgage industry. I was wrong," Eisman said. "The for-profit education industry has proven equal to the task."

With a quote like that, and the recent GAO For Profit College Video it seems our industry is really going to tank and Steve will be right. Then American Military University / American Public University reports quarterly earnings and says that they could be off 25% on the revenue forecast this year.

WOW - Steve is looking to be right again. The industry is in serious trouble and not doing a damn thing to clean it up.