Gaming, Online Education Bubbles Go Pop

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Double the pleasure, double the fun, double the bubble, looks like it's done!

That's right, the online education and video game bubbles, two that rival the housing bubble in viciousness, have seemed to pop all at once today.

Bad news from THQ (THQI - commentary - Cramer's Take) and Nintendo, coupled with a downgrade of Electronic Arts (ERTS - commentary - Cramer's Take), has sent the video game group tumbling. That particular bull market has been going on so long that I was surprised Munder hadn't started a "Video Game Fund." But it's "Katy, bar the door" for Electronic Arts, THQ, Activision (ATVI - commentary - Cramer's Take) and that permanent ne'er-do-well Take-Two Interactive (TTWO - commentary - Cramer's Take). Of course, the permabulls in the group will be right back at us tomorrow, but I think the bubble's gone pffftt here.

Career Education (CECO - commentary - Cramer's Take) pricked the educational bubble, one that has been endorsed wholeheartedly by the always-promotional Ron Baron. Career Education, Corinthian Colleges (COCO - commentary - Cramer's Take), Apollo Group (APOL - commentary - Cramer's Take) and Education Management (EDMC - commentary - Cramer's Take) are the danger zones in that group.

Could it really be over? These bubbles tend to have a few lives even after they pop as the investment bankers among the analysts perform a rear-guard action so the last deals can get done.

Nevertheless, the early birds want to exit now, while the prices are still wildly high.

Go to work!

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Click here to get Cramer's book, "Confessions of a Street Addict."