Paul Campos thinks it's bursting:
Now comes word that applications in this admissions cycle appear to be in something like free fall. As of December 7th, they are down 24.6% from the same time last year, while the total number of applicants has declined by 22.4% year over year. These numbers suggest that law schools will have a total of somewhere between 52,000 and 53,000 applicants to choose from in this cycle, i.e., slightly more than half as many as in 2004, when there were 188 ABA accredited law schools (there are 201 at the moment, with an emphasis on “at the moment”).
To put that number in perspective, law schools admitted 60,400 first year JD students two years ago.
The Dish 