Beautiful!

On Wed, Dec 10, 2008 at 9:08 PM, Patrick Bond <[EMAIL PROTECTED]> wrote:
> (Anyone else getting these feeble letters from the alma mater? Really, can
> we not pass up such an opportunity to gloat? The college I went to was
> ranked, at the time, #1 for undergrad economics in the US by the silly
> magazine US News and World Report. I had great teachers like Bernie Saffran
> and FM Scherer, my thesis advisor. But it took *political economy* to give
> me any sense of why the Crash of 2008 was inexorable, and quite a lot of
> deprogramming of neoclassical dogma went into that.)
>
> -------- Original Message --------
> Subject:        Re: Swarthmore's Current Financial Circumstances
> Date:   Thu, 11 Dec 2008 07:00:27 +0200
> From:   Patrick Bond <[EMAIL PROTECTED]>
> To:     [EMAIL PROTECTED]
>
>
>
>
> Dear president Bloom,
>
> I studied economics at Swarthmore during the early 1980s, during a prior
> severe economic crisis. At the time there was one Marxist lecturer, David
> Weiman, who was limited to teaching the History of Economic Thought. I had
> to commute to Penn to study Post-Keynesian macroeconomics under Sidney
> Weintraub and heterodox finance under Edward Herman (and later went to Johns
> Hopkins for my doctorate in economic geography, where I focused on the
> theory of capitalist financial crisis, supervised by David Harvey).
>
> Because I was deprived of a rounded economics education at Swarthmore, and
> because since then, market-oriented scholars in the discipline very
> effectively policed against Marxist, Post-Keynesian and heterodox analysis,
> I suppose I am not surprised that your finance managers did not protect the
> endowment by diversifying into social investments. What salary, may I ask,
> are you paying these managers as a reward for blowing 30% of the endowment,
> thanks to their touching faith in capitalist markets? May I suggest you buy
> them copies of Das Kapital as an investment in their education?
>
> I would definitely consider donating to Swarthmore, if I felt it would
> contribute to ideological diversity on the faculty, so that the economics
> and other social science disciplines open up much more to critical thinking
> about capitalism, so that, in turn, the next generation of financial
> managers are not so stupid and destructive.
>
> Yours,
> Patrick Bond
> (Senior Professor, School of Development Studies, University of
> KwaZulu-Natal)
>
>
> Alfred H. Bloom, Swarthmore College wrote:
>>
>> Dear Swarthmoreans,
>>
>> As you are all aware our nation and world are facing the most dramatic
>> decline in financial assets in recent times. Unfortunately the College has
>> not been immune from the effects of this decline.
>>
>> Swarthmore has benefited from a continuing tradition of generous
>> philanthropy and has over the years enjoyed exceptional investment success.
>> The College has held prudently to a conservative spending rate on its
>> endowment during years of excellent return so that it would be well
>> positioned in years of disappointing performance. It has also maintained a
>> 15% allocation of the endowment to U.S. Treasury securities to support the
>> budget and to avoid having to sell equities during periods of market
>> weakness. This history and these measures have placed the College in a
>> relatively strong position today.
>>
>> Nevertheless, the almost 30% decline in the endowment from its June 30
>> value of $1.4 billion has been much steeper than anyone anticipated. If the
>> endowment remains at its current level or declines further and we continue
>> to spend at our current level, we would soon start to erode the financial
>> foundation of the College's future.  Moreover, until a turnaround takes
>> place we can expect a reduction in philanthropic support and an increase in
>> the cost of meeting the demonstrated financial need of our students.  These
>> conditions, coupled with the distinct possibility of a protracted recession
>> ahead and uncertainty over when an eventual financial turnaround may take
>> place, make it essential to plan for, and move prudently toward, a
>> significantly more constrained budgetary environment.
>>
>> This past weekend the Board of Managers discussed the situation fully. We
>> have together decided on a sequence of measured courses of action.
>>
>>   *
>>      Effective immediately, the College will pull back from all
>>      non-essential construction work, refrain from initiating any new
>>      programs, and stringently evaluate any faculty or staff hiring.
>>   *
>>      In developing the annual budget for 2009-10 to be submitted to
>>      the Board of Managers in February, we will shape recommendations
>>      on enrollment, tuition and fees, and compensation in ways
>>      sensitive to the financial environment and set guidelines on
>>      spending across departments that ensure tighter management of
>>      our resources.
>>   *
>>      Over the coming semester we will develop a contingency plan for
>>      more significant reductions in the budget, which the College
>>      will begin to implement if by this time next year the College's
>>      financial situation has not improved.
>>
>> The College will adhere fully to its current financial aid policies for
>> all students presently enrolled as well as for those admitted for the Class
>> of 2013.
>>
>> It is very sobering to consider that this community, which makes such
>> careful, constructive, and creative use of its resources, will have to adapt
>> to a more constrained financial environment. But in these very exceptional
>> times, we must take care to conserve for the future the resources that past
>> generations of Swarthmoreans have so carefully conserved for us. And, as
>> president, I must ask you to give as generously as you can to the Annual
>> Fund this year to help meet the cost of our recent commitment to loan-free
>> financial aid awards and to cover the increase we expect in financial need.
>>
>> I am confident that by acting together, and by maintaining educational
>> quality and regard for the people who make up this remarkable community as
>> our priorities, we will weather this environment with the distinctive
>> excellence of this college undiminished.
>>
>> Sincerely,
>>
>> Alfred H. Bloom
>> President
>>
>> ID: 0007523 ,  Patrick M. Bond '83 If you do not wish to receive future
>> electronic mailings from Swarthmore College/,/ click here.
>> <mailto:[EMAIL PROTECTED]>
>>
>>
>
>
>
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-- 
Sandwichman
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