Up and down the nearly bankrupt state of California are school districts that have borrowed hundreds of millions of dollars. They are now in the hole ten to one.
They sold bonds. These bonds are not payable by amortization. Interest builds. Then, one fine day, the districts will have to come up with the money — ten times what they borrowed.
There is no money to pay. There are no reserves.
The dummies who loaned the money will get stiffed.
The school districts’ credit ratings will collapse.
The teachers’ pensions funds will get raided. Count on it. Retired teachers are expendable.
It is an inevitable train wreck. It will be a thrill to watch.
Watch online education soar.