Is this surprising though?  College has been sold as an economic cure-all, a wonderful elixir that paves the way to prosperity and production, with rarely a thought towards practicality.  Schools have no incentive to cut back on less demanded degrees, since it would mean admitting their product is not as advertised.  And why should they care anyway?  They’re still getting that sweet, sweet student loan money the government keeps slopping out.  If schools push kids out into the world with worthless degrees, it’s the kid, not the school, that gets stuck with the bill.  And the kid, well, they’re stuck with that debt come hell or high water… at least until they can convince the government to write it off.

At least the housing bubble had physical assets underneath it, once you cut through the loans and guarantees and credit swaps.  The college bubble has staked a trillion dollars on air.