Museums Get University Bailouts

Another segment of our society who thought the bubble would never burst--private art museums. In today's WSJ we find that Magnes Museum is giving away its entire collection of prized Jewish art. Judah Magnes, for whom it is named, was a former Oakland, California resident who became a renowned rabbi, lecturer, political activist, and co-founder of Israel's Hebrew University. It was started in 1960 by the Fromer family. There is an interesting timeline (leaving out the bubble and the endowment problems) can be found at the website.



"Many museums took on debt to finance these activities (expansions)—only to have the floor fall out from under their endowments in 2008 when the market crashed. Last year, the Gulf Coast Museum of Art in Largo, Fla., shut its doors and gave its 435-piece collection of contemporary Florida art to St. Petersburg College, after seeing its $8 million endowment shrivel to $500,000." You've got to have some pretty risky investments to have your endowment shrivel that much. So there's probably a lot more to be told about the investment advisors these museums are using.
The Magnes Museum in Berkeley, Calif., and the Museum of Contemporary Craft in Portland, Ore., Get University Bailouts - WSJ.com