Explaining Southern California's economy

Reportings: College isn't worth it; Silicon Valley is doing great!; Digital Domain goes bankrupt

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Toshifumi Kitamura/AFP/Getty Images

Autobot 'Bumblebee' is shown during the 'Transformers - Revenge of the Fallen' world premiere in Tokyo, on June 8, 2009. The company that did the visual effects has declared bankruptcy after a precipitous stock slide.

Megan McArdle considers the exploding cost of college. "The price of a McDonald’s hamburger has risen from 85 cents in 1995 to about a dollar today. The average price of all goods and services has risen about 50 percent. But the price of a college education has nearly doubled in that time. Is the education that today’s students are getting twice as good? Are new workers twice as smart? Have they become somehow massively more expensive to educate?" (Newsweek/The Daily Beast)

Facebook aside, Silicon Valley is standing out as the place to send your venture capital dollars. "Silicon Valley startups raised $3.2 billion from venture capitalists during the April-June quarter, far more than in any other part of the U.S as tracked by the National Venture Capital Association. Venture capital flowing into Silicon Valley increased by 4 percent from the same time last year, while it dropped 12 percent nationwide." (Businessweek/AP)

Stock tanks, CEO steps down, and Digital Domain Media Group owes $9 million more than it has in assets. Chapter 11 was a-comin'. And in California, the asset sales have begun. "The company announced that it entered an agreement with Searchlight Capital Partners to sell Venice-base Digital Domain Productions, a subsidiary that operates core visual effects business for the film, television and advertising industries, for $15 million." (LAT)

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