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"Laura Chapman investigated the charter investors' conference on March 10. And this is what she learned: The US Department of Education will be at the charter school "investors" conference, representing you, dear taxpayer, in a scheme to subsidize the financing of charter school facilities that LISC is marketing, along with the Gates and Walton Foundations and a long list of profit seekers investors who get tax credits for doing deals, among other perks."

A shareholder in Virginia-based K12 Inc. has filed a lawsuit against the virtual-schools operator in federal court, alleging that the firm violated securities law by making false statements to investors about students' poor performance on standardized tests. The class-action complaint, filed Monday in U.S. District Court in Alexandria, also accuses K12 of boosting its enrollment and revenues through "deceptive recruiting" practices.

"Today institutions of higher education, public and private, remain largely segregated by race, religion and economic condition. White colleges and universities remain primarily white, Black institutions remain primarily black, and denominational institutions remain even more religiously identifiable. Such segregation is sanctified with tons of federal and state money in the forms of tuition vouchers, tax credits and government subsidized loans. The Obama administration has been largely foreclosed from remedying the situation for fear of offending powerful political forces representing the investors and private institutions. The higher education voucher/loan dilemma portends a probable scenario for the future of tuition vouchers and charter schools at the primary and secondary levels. Stiglitz quotes Alexis de Tocqueville who said that the main element of the "peculiar genius of American society" is "self-interest properly understood." The last two words, "properly understood," are the key, says Stiglitz. According to Stiglitz, everyone possesses self-interest in the "narrow sense." This "narrow sense" with regard to educational choice is usually exercised for reasons other than educational quality, the chief reasons being race, religion, economic and social status, and similarity with persons with comparable information, biases and prejudices. But Stiglitz interprets Tocqueville's "properly understood" to mean a much broader and more desirable and moral objective, that of "appreciating" and paying attention to everyone else's self-interest. In other words, the common welfare is, in fact, "a precondition for one's own ultimate well being."17 Such commonality in the advancement of the public good is lost by the narrow self-interest. School tuition vouchers and charter schools are the operational models for implementation of the "narrow self-interest." It is easy to recognize, but difficult to justify. "

Investment money is pouring into Florida from wealthy Chinese who find that Florida has exactly what they are looking for - and what they need to secure US green cards. Chinese investors are taking advantage of the EB-5 investment visa program, the so-called "green card via red carpet," by putting millions into Florida's charter schools and an aquaculture farm in Central Florida.

"According to a recent article on Reuters, an international news service based in Great Britain, "investors of all stripes are beginning to sense big profit potential in public education. The K-12 market is tantalizingly huge: The U.S. spends more than $500 billion a year to educate kids from ages five through 18. The entire education sector, including college and mid-career training, represents nearly 9 percent of U.S. gross domestic product, more than the energy or technology sectors." Pearson, a British multi-national conglomerate, is one of the largest private businesses maneuvering for U.S. education dollars. The company had net earnings of 956 million pounds or approximately 1.5 billion dollars in 2011."

"Moody's Investors Service downgraded the bond ratings of 53 school districts in Michigan. Public schools are losing enrollment to charter schools, and losing the ability to balance their budgets. More than 80% of the charter schools in Michigan are operated for-profit."

"Wealthy investors and major banks have been making windfall profits by using a little-known federal tax break to finance new charter-school construction. The program, the New Markets Tax Credit, is so lucrative that a lender who uses it can almost double his money in seven years."

Reformers are convinced they can create a network of charter schools that can provide a quality education and in the process post a nice profit. They've been able to sell their idea to investors who sense an opportunity to do good and to do well at the same time. But the evidence to date shows they are wrong. The latest involves two marquee-names: Tom Vander Ark, who handed out more than $1.6 billion from the Gates Foundation between 1999 and 2006, and Chris Whittle, whose Edison Schools were supposed to revolutionize public education. The track record of both men serves as a cautionary tale at this crossroads in educational history.

A real estate investment trust that works mostly in the megaplex movie-theater business is quickly learning that the charter-school industry is a smart place to put its money these days.

New Orleans is one of the best examples of what national experts increasingly describe as a school "portfolio management model": a structure where schools that do not meet standards get closed or new management, much like an investor might drop or sell underperforming stocks.

With approximately 500 tax-exempt bond transactions completed to date, the charter school sector of the municipal market continues to gain size and momentum and has emerged as much more than a fragmented niche for high yield investors. The growth rate in the number of charter schools across the country - now exceeding 5,000 - is expected to increase due to the heightened focus that policymakers at all levels of government have placed on results-driven education reform. This growth will generate greater charter school demand for affordable facility financing, a demand that is well met by the tax-exempt bond market with its tax-exempt interest rates and longer principal repayment periods. To date, however, fewer than 8% of charter schools have accessed the market for their permanent facility financing needs.

"In effect, "the invisible hand" behind the push to create new education markets is coming from Wall Street investors who are flush with capital for investment. Wall Street bundlers and investment firms are buying up stock in charter school companies and big education vendors. These bundlers not only fund both party's campaigns, they also sell stock, betting on the futures of big education vendors, start-ups, charter schools, and vouchers. They "encourage" political leaders to pursue policies that will hedge their bets on education products and to view all schools as portfolios that will increase in value as long as the Feds and the states pursue policies that encourage privatization."

"Plans are under way for investment corporations to execute the biggest conversion - some call it theft - of public schools property in U.S. history. That is not hyperbole. Investment bankers themselves estimate that their taking over public schools is going to result in hundreds of billions of dollars in profit, if they can pull it off."