The Harvard Crimson reports on the sudden financial turmoil.
Why don’t they tap into that multi billion dollar endowment of theirs? In times like this, the large educational institutions give off the appearance of hoarding money. The endowment is supposed to exist in perpetuity, so I get that they can’t spend everything. But come on.
They can't spend too much from the endowment, because that plus the market drop could cause it to get cut in half, which would reduce it to what it was 10 years ago, and then what?
Harvard is very well endowed!
...instead of twentely billion. How ever will they get by?
From the article
"Because of the recent declines in the markets, the endowment, while still large, is not as large as it was previously. As it shrinks, it has less capacity to support our existing operations, especially as other shortfalls in revenue sources loom.”"
I guess $40 BILLION isn't as much as it used to be.
They're quick to cut staff and services when the endowment drops. But when the endowment grows hugely, they don't boost salaries or add services. They just go nuts building a campus in Allston which nobody wants to move to.
If they paid people now, they'd have (a teeny amount) less liquidity for dirt-cheap buy-outs property owners on their wish list when the crash wrecks businesses and peoples' retirement plans.
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