Real Money
The late senator Everett Dirksen of Illinois once famously said to Lyndon Johnson about the national debt: “A few billion here, a few billion there and before you know it, you’re talking real money…” The world economic meltdown is painful, but there is one silver lining: At least we are now talking real money. We no longer deal with mere millions. Billions are the currency of the hour.
Ah, Madoff, ah, Ponzi! They have shown us what real money is. But let us not exaggerate: The Madoff billion dollar losses are only cumulative. After all, individual investors lost mere millions.
For example, Long Island Jewish Health Systems lost almost $6m. But not to worry, they tell us, because this was “less than 1 percent of our portfolio.” Not a bad portfolio, one that exceeds the real money threshold. Yeshiva University lost $110m. This is not that serious, it says, “because it is only 8% of our endowment total, and our work will not be affected.” The Jewish Community Foundation of Los Angeles lost $18m. and the Technion, Bar-Ilan University, Hebrew University and Hadassah all lost heavy millions, but they all assure us that – even though they will never recoup those millions – they are not broke and will continue to operate and function normally.
AN IMPERTINENT question keeps popping up: If these and other Jewish institutions can afford to lose hundreds of millions of dollars without any affect on their programs, this means that each of their endowment funds runs into the billions. Why, then, are these and the others who lost so much constantly asking for funds? Why are they in a perpetual fund-raising feeding frenzy? Instead of raising money constantly, perhaps they should be giving some of it away.


