You know that feeling when you check your bank account after the holidays? That slight panic? Well, markets, schools, and investors are all having that moment right now—just with a lot more zeros involved. Let me explain what's happening in actual English.
The Government Shutdown: Or Why Markets Are Acting Weird
Okay, so the government shutdown ended, and at first everyone was thrilled. Stocks jumped, investors celebrated, and for approximately ten minutes, life was good.
Then someone asked: "Hey, where's all that economic data we usually get?"
Crickets.
Turns out when you shut down the government, nobody's around to count things. And by "things," I mean really important stuff like inflation rates and job numbers—the exact numbers the Federal Reserve uses to decide if they should make borrowing money cheaper or more expensive.
Without those numbers, the Fed is basically making decisions blindfolded. Wall Street called it "flying blind," which is as fun as it sounds. So everyone ran back to safer investments and waited for someone to turn the lights back on.
Good news: shutdowns usually don't break markets long-term. Bad news: this "fix" only lasts until late January, so we get to do this dance again in a few weeks. Fun!
Schools Are Broke (Well, Broker Than Usual)
Remember when your teacher said "there's no such thing as a stupid question"? Well, here's a good question: where's the $6.2 billion in federal money that's supposed to go to schools?
Nobody knows! It's just... stuck. Somewhere. In the bureaucratic equivalent of your junk drawer.
And there's another $5 billion that Washington is arguing about like siblings fighting over the TV remote. Meanwhile, actual schools are trying to figure out how to, you know, educate children without money.
One district in North Carolina is looking at cutting 20% from programs that help struggling students. Oregon schools are preparing to cut $25 million. That's not trimming the fat—that's amputating limbs.
The smart districts? They're making backup plans for their backup plans, protecting the programs that actually help kids, and—revolutionary concept—telling parents what's happening. Organizations like Digital Promise and Education Resource Strategies are helping them figure it out, but it's still a mess.
VCs Realize That Desperate Companies Pay Better Interest Rates
Here's where things get interesting (in a "watching someone else's drama unfold" kind of way).
Traditional venture capital—you know, giving money to startups with big dreams and no revenue—is getting harder. So investors are trying something different: lending money to companies that are already struggling. It's called distressed credit, and it's basically the financial version of "I can fix him."
Why would anyone do this? Because desperate companies will agree to almost anything—higher interest rates, better repayment terms, first dibs if things go south. It's risky, but if you know what you're doing, it can pay off.
Case in point: Someone just raised $1 billion specifically to invest in struggling European companies. That's not loose change under the couch cushions—that's "we think this is going somewhere" money.
The strategy is simple: swoop in when companies need cash, team up with people who know how to handle bankruptcies, or find countries where the bankruptcy rules just changed (making it easier to get your money back). Just don't get cocky—plenty of people have lost their shirts doing this.
So What Does All This Mean?
Markets are jittery because they're missing key information. Schools are scrambling because they don't know if their money is coming. And investors are finding creative ways to make money off other people's problems.
Who's going to do well in 2026? The people who saw this coming and planned for it. Whether you're investing money, running a business, or just trying to understand why your kid's field trip got canceled, the lesson is the same: hope for the best, but have a Plan B (and maybe a Plan C).
Happy holidays, and may your 2026 be less chaotic than the last few weeks of 2025.
Sources
Barron's – Stock Market Government Shutdown Things to Know Today
Courthouse News – Markets Skyrocket Then Plummet After Government Reopens
Digital Promise – Meeting the Moment in K-12: Navigating Financial Uncertainty & Sustainability
Education Resource Strategies – K12 Financial Sustainability
Fisher Investments – The Long Shutdown's Little Lasting Effect
Fortune – Record Government Shutdown Agreement Ends Funding January Agencies
Latin Lawyer – Unlocking Opportunity: How Private Credit is Reshaping Latin America's Financial Landscape
Learning Policy Institute – $5 Billion Federal K-12 Formula Funding Hangs in Balance Between White House and Senate Proposals
Learning Policy Institute – States Face Uncertainty as K-12 Funding Remains Unreleased
MarketWatch – U.S. Stocks and Gold Are Rallying on Hopes That the Shutdown Ends
PitchBook – Distressed Defaults
The Daily Reflector – State, Federal Budget Delays Create Uncertainty for Schools; Some Programs Brace for Cuts
Salem-Keizer Public Schools – K-12 Funding: Districts Preparing for an Uncertain and Troubling Financial Future
State Street – What is Private Credit and Why Investors are Paying Attention
Wall Street Journal – Polus Capital Bags $1 Billion for European Distressed Deals, Sources Say