Be It Resolved: Harvard is an Investment Bank

I love this quote that Felix picks from a Brad DeLong commenter in the ongoing debate about whether Harvard’s endowment gains should be taxed:

Harvard is an investment bank with a mom-and-pop non-profit enterprise attached to it for tax purposes.

There is a fairly savage Harvard takedown here by Jim Manzi.

Who is right? I’m haven’t spent enough time with this one yet, but I have to confess that I sidle closer to the "tax ’em" crew when it comes to private university endowments.