...(F)or Thiel, the bubble that has taken the place of housing is the higher education bubble. “A true bubble is when something is overvalued and intensely believed,” he says. “Education may be the only thing people still believe in in the United States. To question education is really dangerous. It is the absolute taboo. It’s like telling the world there’s no Santa Claus.”Much of this applies to K-12 schooling as well. State and local governments spent more than $800 billion on their K-PhD schools in the 2007-2008 fiscal year, according to this chart from the NCES.