Bubbles
chinese preference for sons may have led to the bubble in the US. the theory is that boys’ families have to compete for marriagiable girls w/ high savings b/c of the girl shortage, and the high savings rate led the chinese gov’t to buy US treasury bills and depress interest rates in the US. i speculated years ago that chinese girls would necessarily become a highly valuable commidity. u can’t have a huge artificial shortage of something in demand w/o consequences, but i didn’t think about it leading to a US bubble. i did figure that chinese men would outsource the problem to poorer nations by marrying women of southeast asian origin.
another bubble may be close to popping. the cost of higher ed. has been rising far faster than inflation, but w/ the recession, many potential college students may head to community colleges instead of big name ivy schools. what’s in a name?
so the proposed solution is again to outsource the problem. prestigious colleges are thinking of propping their prices up by opening more spots to rich overseas applicants who don’t mind so much about paying inflated prices. yet.
