Its a shame that this is happening but its yet another lesson that there are consequences to decisions. They wanted the high returns that hedge funds bring, but did not appreciate that high risk is always associated with high returns. And no one can tell me that a bunch of university professors were duped by the hedge funds. They were greedy, wanted good returns and bet that the risk would not hit them. They are now facing the consequences of being wrong. There is no magic way out of it.
Sort of reminds me of my brother, who within a year pissed away over $60,000. When I asked him what happened to the money, he answered, "I invested. Well, I had to take a risk."
This is from a guy who was out of work (again) & paying child support.
Understanding consequences means understanding your own situation. You can't pay, you don't play. Simple. My brother apparently decided to use everyone around him (especially me) as his safety net.
In the case of Yeshiva, it was wrong to invest when the fate of so many employees depends on savings & assets. Friends who work there (incidentally, it is a right-wing, not left-wing religious institution) are quaking in their boots. Already there have been a number of voluntary retirement packages.