Over the past while, a stream of investors in real estate syndications and other ventures were hit with massive losses. Many conversations erupted over the proper communal response to these rivers of red ink. I’ve heard many strong, fervent arguments from various angles- investors who have lost money, investors who have made money, real estate deal managers, equity brokers, as well as rabbanim and askanim who inevitably get called upon to clean the mess. Cadres of online commenters also offered their bold accusations and precise directions from their anonymous obscurity.
While guiding communal policy is over my pay grade, to help clarify differing perspectives, I present an age-old salty tale, with a Purim twist. It takes us back to the ancient Kingdom of Fleishtown, whose wise meaty monarch, King Zaltz, had to deal with a communal dilemma of similar weight.
Cheerful and Glad
“And it was in the days of King Zaltz of Fleishtown, a grand celebration took place in the royal courtyard. The king, a man of hearty appetite and keen taste, decreed a week-long feast to honor the prosperity of his realm. It was during this time of merriment that pastrami*, a delicacy rich in flavor and steeped in tradition, was introduced to the masses. Originally a nobleman’s fare, the pastrami* was met with great adoration by all, lauded for its exquisite taste and presumed health benefits. And the Kingdom of Fleishtown was cheerful and glad.
Fat and Full
However, as the seasons turned, this once revered meat became an object of unbridled obsession. The people, once moderate in their consumption, were now ensnared by an insatiable craving for the meat. Merchants, captivated by money, began flooding the markets with pastrami* of ever-diminishing quality. The once occasional indulgence turned into a daily necessity, with families and friends gathering around laden tables, feasting on pastrami* as their forebears had on grilled vegetables and lean protein. And the Kingdom of Fleishtown was fat and full.
Sick and Sad
The kingdom’s landscape began to change; fields once used for a variety of crops were now dedicated to feeding the livestock needed for pastrami production. Traditional eateries and food stalls, which had offered a diversity of foods, transformed into pastrami*-exclusive establishments. The frenzy reached such heights that the other aspects of the kingdom’s rich culinary heritage began to fade into obscurity. The relentless pursuit of pastrami* led to a decline in the general health of the populace, with physicians reporting ailments unheard of in the times before the pastrami* craze. And the Kingdom of Fleishtown was sick and sad.
Troubled and Angry
King Zaltz, upon witnessing the transformation of his kingdom and hearing reports of his people’s declining health, convened his most trusted advisors. The council was torn. Some argued for an outright ban on pastrami*, citing its detrimental effects on public health and the economy. Others advocated for strict regulations, proposing quality controls and consumption limits. Amidst these debates, the king sat in deep contemplation, aware of the gravity of the decision that lay before him. And the Kingdom of Fleishtown was troubled and angry.
Conflicted and Frustrated
As the council deliberated, a new perspective emerged. A faction within the kingdom, comprising pastrami artisans, health experts, and concerned citizens, presented an argument in favor of pastrami*. They reminded the council of the days when pastrami* was a symbol of cultural pride, a delicacy to be savored in moderation. This group highlighted the need for personal responsibility in consumption and ethical practices in production. They warned against the dangers of prohibition, which they feared would only lead to black-market trade and further problems.
Furthermore, this faction pointed out that the issue at hand was less about pastrami* and more about the nature of desire and excess. History had shown that when one indulgence was curbed, another soon took its place, leading to a similar cycle of overindulgence and regret. They argued that the solution lay not in banning pastrami*, but in educating the populace about moderation and diversifying the kingdom’s culinary landscape. And the Kingdom of Fleishtown was conflicted and frustrated.
Healthy and Balanced
King Zaltz recognized that the core of the issue lay in the balance between enjoyment and excess. The abuses within the pastrami* trade would be addressed through existing laws, but the king refused to ban the delicacy outright. Instead, he instituted ‘Pastrami* Day’, a day of remembrance and reflection. On this day, Megillas Fleish, chronicling the rise and fall of the pastrami craze, would be read throughout Fleishtown. The king hoped that this tradition would serve as a reminder of the virtues of moderation and the value of diverse culinary practices.
And so, Fleishtown regained its balance. ‘Pastrami* Day’ became a day of reflection and celebration, honoring the kingdom’s rich culinary history and the importance of making mindful choices. The reading of Megillas Fleish echoed through the streets, a testament to the enduring wisdom of temperance. The kingdom flourished once more, its markets buzzing with a variety of foods, and the Kingdom of Fleishtown was healthy and balanced.”
*KLOP LOUD
More Awareness Coming?
I don’t think we will hear about the new takana of Megillas Real Estate. But hopefully, there will be awareness brought to the need for proper investment due diligence and oversight. One specific point I feel needs to be addressed is halachically questionable practices such as “unbiased” investment middlemen who don’t disclose that they receive commissions. Rabbanim and askanim have been talking, and hopefully, something realistic and impactful will get over the finish line.
Ultimately, It’s on You
But, whatever happens on a communal level, ultimately the responsibility to manage one’s affairs lies upon the individual investor. Everyone needs to learn the basics and know their limits if they want to minimize their vulnerabilities to overly risky investments and scams. This is NOT to say that all losses and fraudsters can be avoided. Even the most savvy, careful investors can, and do, get caught in bad deals, cyclical downturns, or possibly the occasional sophisticated scam. But many investors don’t do the basics- and that’s on them.