It's ridiculous to say that a graduate degree in journalism is a waste of money. It may not be the best decision for many people, including many who are in graduate programs now, but there are situations in which it is worthwhile.
For people who want to teach journalism at a college level, it has become a basic requirement. So it isn't a waste for them.
For people who want to go into a specialized area of journalism, such as medical reporting, the masters can give them an entry into that which you aren't going to get at the Bum**** Daily Bugle. So it isn't a waste for them.
There's also a pretty strong argument that graduate school is a decent place to weather the economic storm going on right now. That depends on your financial situation, whether the program you're interested in is throwing money your way and a host of other factors. But when the jobs go away, it isn't necessarily a bad thing to go back and get more training while waiting for the economy to recover.
There's a lot of negativity in the industry right now, understandably, as it goes through a paradigm shift. Clearly we've had a tough few years and the worst is still ahead. But the simple fact is that people crave information now more than ever, as they've gotten used to having enormous amounts available at their fingertips. People who can provide reliable information are going to be in demand and eventually -- on the other side of this paradigm shift -- someone will figure out how to make money from that demand. Going to school to understand better how to deliver information is not exactly a waste of money if you've got nothing else to do.