In the end, the crisis is from the costs of over educating the public. It's just too much money. Happiness doesn't come from money but dispair sure as H### comes from the lack of money or being over your head in debt. Think the education system should work more like the Army. You go into basic training and they will find what you should be doing. You may be General material and you may be latrine cleaner-outer, both jobs need doing but separate training needs to be done. No need to train for what you are not meant for.
This is a nice post, and while I don't agree with all of it, I want to be clear in speaking validity of much of what you wrote here. Where I really do have to disagree though, is right here. We're simply not overeducating the public, and importantly I don't believe it is possible to overeducate someone. Where it goes wrong is the place that I mentioned in the earlier post - it misunderstands why universities exist.
The system that we have in the US is not designed to train people for careers, and job training is not viewed as the key benefit of education in US universities. Instead, education is intrinsically valuable, and people who are educated live better lives than those who aren't. It's important in saying that to be clear that education can mean many different things, and it's not a value judgement about the individual paths that people take, but rather simply a well studied fact that the economic costs of education remain small compared to the benefits that individuals see in their lives. Our universities are organized around this principle, and they are the best in the world because of it.
That doesn't mean that the cost of education isn't an issue. We need to think carefully about reform in this area for all of the reasons you mention, but we shouldn't mistakenly equate the value of education with financial benefit in considering that reform. The wonderful thing about education, though, is that its key
side effect remains (unambiguously, and accounting for the effect of debt) significant personal financial and large scale macroeconomic gain. But it is a side effect, and not the primary goal.
It's also true that many, perhaps most, people don't understand this. Many students make choices about what they study, where, and at what cost, with arguments about issues that you mention in mind. We need to do a better job of explaining what university and college education is designed to, especially to those considering a degree, so that they can make an informed decision. Employers, also, need to better understand what degrees provide and what they don't. When people don't make informed decisions, they end up in situations like those that you describe. It doesn't mean that there's a fundamental problem with post-secondary education. The same arguments were made about educating students through the high school level, and the choice to not only expand access but to make it mandatory is a major part of the history of economic growth in the US. It may be that over the next (many) decades, we will need to restructure universities in recognition of the reality that a degree is the norm, rather than the exception.
But this isn't a serious problem, rather, this should be highly desirable in the same way that we desire that all people complete high school.