For those that don’t already know. The famed wall street fund manager Bernard Madoff who produced terrific returns for his hedge fund year after year was running a giant $50 billion ponzi scheme in the end.
I was reading a news tidbit about how a judge signs order to protect Madoff investors. Seriously? I know that it’s terrible that people lost money but these weren’t regular run of the mill folks who invested with Madoff. Investment in the fund was only for sophisticated investors. These people were investing the fund to take on higher risks in return for higher gains. The SIPC protects against bankruptcies of broker-dealers and not bad investments. Why are we making it a habit of bailing out the wealthy just because they’re politically connected?
On an interesting side story, many on Wall Street knew Madoff was cheating, but they suspected him of insider trading rather than running a huge ponzi scheme. Shouldn’t the biggest sign of fraud be when people tried to reverse engineer his trades with historical prices to test his “investment strategies”?
Here’s a list of victims of the Madoff fraud which alleges the fraud being nowhere near $50 billion (so far).
this is good writing. Good use of standard edited English. You will get lots of traffic this way. We will challenge the others to come up with this level of quality analysis.