Just as markets over-built housing, mispriced mortgages and bid up prices beyond the real financial capacity of homebuyers, America's colleges and universities have over-expanded and over-priced their product. We are getting an education bubble with dynamics similar to the late housing bubble. As more and more students find themselves with debts that exceed the salaries offered by the current job market, colleges have expanded beyond the capacity of their markets. Some kind of shakeout is coming. The question is: what kind. Clearly, our society cannot afford the current rate of expansion of higher education costs. We've reached the limits of piling these expenses onto students. But as resources become more scarce, as the consequences of over-expansion hit, the social risk is that the shoe will pinch even more intensely in the wrong places.