At least $600 million in Jewish charitable funds have been wiped out by the collapse of Bernard Madoff's Wall Street investment firm, a partial review by The Jerusalem Post revealed Monday.
Yet much is still hidden about what may amount to the most spectacular financial disaster to hit Jewish life since the Great Depression, with unconfirmed losses totaling up to $1.5 billion.
Furthermore, the Post's figures do not include billions of dollars lost to individual and family investors, many of whom were the primary donors to Jewish schools, synagogues and communal charities.[...]
For the worldwide Jewish community, the fact that the man at the heart of what may be Wall Street's worst-ever fraud was an active member of the community could be the worst news yet in a bad recession period.
Not only could Madoff's alleged dishonesty increase anti-Semitic feeling in a time of worldwide economic downturn, said many Jewish leaders, but his close involvement with the Jewish community has exposed vast amounts of Jewish communal assets to his scheme.[...]
"This is a tidal wave, a tsunami," said a veteran advisor to Jewish nonprofits, who spoke on condition of anonymity. "You can live with a downturn in the economy, because there will be an upturn. But now we're talking about foundations that have been wiped out completely, money that's not recoverable."[...]
For many years the oldest investors have been receiving returns better than they could have received anywhere else and they must have received their initial investment many times over. In reality, of course, they were profiting at the expense of the newcomers. Anyone in such a position has a right to be angry at the chaos inflicted upon them which will destroy many institutions - but technically speaking, they haven't lost a cent.
ReplyDelete"For the worldwide Jewish community, the fact that the man at the heart of what may be Wall Street's worst-ever fraud was an active member of the community could be the worst news yet in a bad recession period.
ReplyDeleteNot only could Madoff's alleged dishonesty increase anti-Semitic feeling in a time of worldwide economic downturn, said many Jewish leaders, but his close involvement with the Jewish community has exposed vast amounts of Jewish communal assets to his scheme.[...]"
We are hearing many comments in such as "You Jews have all the money" and "if we want to stay in business, we have to cater to the Jews who have all the money".
A number of our clients have told us that they will only do business with companies who will join a Christian business network.
One client told us that "he feels he cannot trust his Israeli CFO because of his background". The CFO was fired.
We had to sue a former client who did not pay. We had a signed contract and showed that we had fulfilled all of the terms of the contract but the Judge ruled against us because he said "every one of you does some sort of tricks".
An appeal would have cost more than we were owed.
Economic trouble always increases anti semitism throughout history. Even without news stories of Jews who commit financial crimes, anti Semites can blame Shearson, Lehman, Goldman, Sacks and Bloomingdales for their money problems.
And of course Alan Greenspan who is one of the scapegoats for the world's financial woes.
Thank you for exploring this issue. I do think that it is important to the study of Jewish identity. As Anti Semitism increases, I am sure that we will see a decrease in the number of converts to Judaism. This was the case in Pre Expulsion Spain, in 19th century Russia and also in mid twentieth century Europe.
Perhaps Jersey Girl has hit on a deep spiritual cause-and-effect for the Jewish community to reflect upon.
ReplyDeleteThe Hashgacha-- which has caused a tidal wave (or tsunami) of anti-Jewish sentiment--may be a direct response to our community's misguided geirus policies.
As Anti Semitism increases, I am sure that we will see a decrease in the number of converts to Judaism.
ReplyDelete-----------------------------------
This point can be a PLUS....
Our Jewish tradition derives from Hillel, not Shammai. Hillel welcomed converts and was praised for "bringing them under the wings of the shechina" when they were initially conflicted about whether to convert. I think it's far too hard for genuine converts to become Jewish and many good people are left in limbo as a result.
ReplyDeleteHashem Yisborach brings punishment mida cneged mida. This situation has almost nothing to do with geirus.
ReplyDeleteAs in so many other areas, Hashem is showing us that the only One in the Universe that should turn to or depend on is Him. He is creating situations that show us that security from the US or the IDF is illusory, wealth and riches are not dependent on super investments or business acumen and the status of Jews as a nation and as individuals depends on our bitachon in Him.
This a clear call to turn to Hashem for all our needs and to direct our efforts to serving Him.
Hashem Yisborach brings punishment mida cneged mida. This situation has almost nothing to do with geirus.
ReplyDeleteBut the mida can have an underlying lomdus to it which has everything to do with geirus.
the mida can have an underlying lomdus to it which has everything to do with geirus.
ReplyDeleteAbsolutely ... for instance, if Mr Madoff were to have been a ger we'd have a special mitzva to love him and not oppress him. As it is, we only have the mitzvos that apply to the relations between any Jews.
The main point is people need to impute personal responsibility to the bad apple, not the tree.
ReplyDeleteMy website, in progress (www.rainmakerscam.com) addresses the bad actors ... when people seek to smear a race for the acts of one of its members they only demonstrate their lack of personal prestige.