History of IDEA
Jeannie Oakes, Founder and Former Director
Youth Voice in School Finance
NEW REPORT: Los Angeles' road to A-G for all
Without Dollars and Sense Powerpoint
Past Educational Opportunity Reports
When will the testing bubble burst?
- 04-28-2011
-
Blog by Anthony Cody/Education Week
In the mid-1920s our economy boomed. The stock market, then relatively new, soared to amazing heights, as the middle class invested their money and saw their wealth grow. But there was a problem. The stock market prices had inflated beyond the intrinsic worth of the companies they were based upon. This came to be known as a stock market bubble, because when the inflation of value stopped, the bubble burst and the economy collapsed. The nation experienced another bubble recently with the rising value of real estate, which blew up in our faces a few years ago, and is still costing many of our communities dearly. Take a look at the dynamics of these bubbles. In each case we had something with some intrinsic value, which people began obsessing over. The future value was projected to be far greater than the current value, and investors started pouring money into the market, bidding up the prices. The phenomena started to feed itself - as the price rose, people saw others making their fortunes, and more money flowed in. (more...)
Send this
Print this
