The art world in Los Angeles has spent the last two months watching the unfolding financial crisis at the city’s Museum of Contemporary Art (MOCA). In a nutshell, the museum outspent revenue for several years and borrowed from its endowment to cover expenses. With a recent drop in donations and the endowment depleted, the museum could have run out of money in the spring of 2009.

Like much of the country, MOCA was living on credit. The good intentions of significant exhibitions ran into the reality of fiscal irresponsibility. In theory, the museum’s blockbuster shows should have attracted new donors to cover the additional cost. In reality, the donations never materialized and the bills kept coming.