[PGR88]

While this university’s troubles are Madoff-specific, I sense that the overall “higher education bubble” will likely be burst by a slide in the stock-market or some other financial/debt crisis. Just like housing, the Federal Reserve and US government are pumping up a huge debt bubble in education.

[Billthedrill]

The university where I work got spanked very badly about a decade ago through an infallible real estate investment that turned out to be not only fallible, but not entirely legal if I understand the particulars correctly. The State Board of Education was NOT amused. One upshot was that the entire staff didn't see a raise in pay for four straight years until the U got its collective head above water level.

It's a perennial temptation for people with PhD's to assume that they translate to business acumen. A lot of people without PhD's tend to make a lot of money that way.