Many American universities are in financial trouble: The college-cost calamity

The Economist reports:

A new report looked at the balance-sheets and cashflow statements of 1,692 universities and colleges between 2006 and 2010, and found that one-third were significantly weaker than they had been several years previously.

A crisis in higher education has been brewing for years. Universities have been spending like students in a bar who think a Rockefeller will pick up the tab.

You might want to read Glenn Reynold's book.