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Government run "anything"......
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<blockquote data-quote="Babagounj" data-source="post: 2043795" data-attributes="member: 12952"><p>Another Democratic failure .</p><p></p><p><a href="http://dailycaller.com/2016/02/05/chicagos-schools-are-more-broke-than-puerto-rico/" target="_blank">http://dailycaller.com/2016/02/05/chicagos-schools-are-more-broke-than-puerto-rico/</a></p><p></p><p>This week, Chicago Public Schools made a $725 million bond deal necessary to save the district from running out of money this spring. Initially, the bond was offered at 7 percent interest, but a lack of investors forced them to drop the price until the effective yield reached as high as 8.5 percent. Even at that rate, the $725 million in bonds CPS sold was less than the nearly $800 million they were hoping to move.</p><p>The 8.5 percent interest rate is, in the words of the Chicago Tribune, <a href="http://www.chicagotribune.com/news/opinion/editorials/ct-chicago-public-schools-bankrupt-emanuel-ctu-edit-0204-20160203-story.html" target="_blank">“simply staggering”</a> when CPS has the power to tax and when the federal funds rate is close to zero percent — meaning borrowing money should be very cheap. CPS is also currently barred by Illinois state law from declaring bankruptcy, but despite that impediment to the district, investors appear to have almost no confidence in the debts being fully repaid.</p><p>The newly-borrowed money will cost tens of millions of dollars per year for CPS to pay off, adding to the $538 million per year the district was already spending to finance its existing $6.2 billion in debt.</p></blockquote><p></p>
[QUOTE="Babagounj, post: 2043795, member: 12952"] Another Democratic failure . [URL]http://dailycaller.com/2016/02/05/chicagos-schools-are-more-broke-than-puerto-rico/[/URL] This week, Chicago Public Schools made a $725 million bond deal necessary to save the district from running out of money this spring. Initially, the bond was offered at 7 percent interest, but a lack of investors forced them to drop the price until the effective yield reached as high as 8.5 percent. Even at that rate, the $725 million in bonds CPS sold was less than the nearly $800 million they were hoping to move. The 8.5 percent interest rate is, in the words of the Chicago Tribune, [URL='http://www.chicagotribune.com/news/opinion/editorials/ct-chicago-public-schools-bankrupt-emanuel-ctu-edit-0204-20160203-story.html']“simply staggering”[/URL] when CPS has the power to tax and when the federal funds rate is close to zero percent — meaning borrowing money should be very cheap. CPS is also currently barred by Illinois state law from declaring bankruptcy, but despite that impediment to the district, investors appear to have almost no confidence in the debts being fully repaid. The newly-borrowed money will cost tens of millions of dollars per year for CPS to pay off, adding to the $538 million per year the district was already spending to finance its existing $6.2 billion in debt. [/QUOTE]
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