This just in:
STOCKHOLM—The Nobel Foundation, under pressure to cut costs following sluggish returns on capital in recent years, is slashing the value of its prestigious prizes for the first time in 63 years while also looking to trim in other areas, such as expenses related to its annual banquet.
Winners of the 2012 Nobel Prizes will be paid 8 million Swedish kronor, or about $1.1 million, representing a 20% decline from the 10 million, or $1.4 million, paid out last year. The Nobel Foundation typically gives out prizes each year in six categories spanning medicine to literature to chemistry.
The Nobel Peace Prize, the most popular of the prizes, has become one of the world’s most coveted distinctions.
The cut comes as organizers cope with economic instability, particularly in the equity markets where the Nobel Foundation has traditionally put a high concentration of its assets. In recent years, overhead expenses and prize money have outrun investment returns.
Maybe they should blame those Keynesian economists they anointed.