Hospital losses millions from Ponzi scheme collapse

The North Shore-LIJ Hospital system’s bone marrow donation center relied on donations from investors involved in Bernie Madoff’s Ponzi scheme and is now down and out $1.8 million.  I expect similar stories from other charities that rely on private donations now that the cash flow is starting to stem.

Is this a case for government interventionism?  No… private donations still are the best mechanism for charities to function.  Excess interventionism and protectionism got us into this mess and bailouts aren’t going to get us out, not for auto makers or the Salvation army.

It’s going to be a rough ride for a lot of people, but prolonging the market correction period of the business cycle isn’t going to get us back on track towards sustainable growth.  Charities, especially ones that fund disease research and treatment, shouldn’t be beholden to the political sphere which requires lobbying to fund special interests.  Human disease shouldn’t become political (more than it already is, I mean).

EDIT: Econophile explains why the government is to blame for the easy money mentality like Madoff’s scheme on the subprime crises forum. (via Free advice blog)

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