The numbers tell the story. The teachers’ retirement fund is short about $9.6 billion. The school system owes more than $6 billion to its bondholders. On Wall Street, Chicago schools have the makings of following the same path as Puerto Rico, which is struggling with a $70 billion debt crisis.
Let this sink in. And there are other school districts across the country who’re in similar situations. How do public schools end up owing such outlandish sums of money to Wall Street?
Source: School of Debt: How to Bankrupt Public Education, Chicago-Style – Bloomberg