The Art Recession
THE SOURCE: “The Culture Crash” by James Panero, in City Journal, special issue on New York’s Tomorrow, 2009.
The remarkably uniform plunge in the endowments of New York City’s best known arts institutions during the 2008–09 recession raises troubling questions about the prudence of the city’s cultural leaders. If the investment goal of the financial managers of storied museums and companies is to preserve capital, why were so many of them long in risky investments in domestic and foreign stocks?
The reason, according to James...