Nobody really knows how much money Bernie Madoff "lost" or "misused."
If the hype is right, then it's mostly imaginary profits people that they had which make up the really big money. The real money is the original money people invested with him.
Then people kept the money with him and got friends and family to invest, because he was claiming great success. But in actuality, the "profits" in their accounts never existed. It was one big scam.
In realty, people lost their investments, but in the big picture, they lost their dreams...
6 comments:
Greed and ignorance are only a few ways to describe those investing with him. Baruch Hashem, many people only lost part of their portfolio, but how can you forgive those who gave it all to him? Especially those people with millions who can afford to pay fees for an extra broker or investment firm. So what if the guy had a pristine reputation?
I rarely watch TV, but I miss the good old style of 60 minutes:
http://www.cbsnews.com/stories/2009/02/27/60minutes/main4833667.shtml
Yes, true, but 60 Minutes is terribly anti- for me. They support making me a dp.
Shalom!
Madoff did not have a "pristine reputation". The SEC was warned, in writing, in 2005, if not before, and disregarded the warning. Anyone who consulted a competent private firm that researches funds would have known not to invest in Madoff's "Ponzi scheme". The website: mises.org is a good source for no-nonsense economic news and information. One good article on Madoff is at:
http://mises.org/story/3260
Once in the site search "Madoff" for more.
Unfortunately many Jewish organizations trusted Madoff blindly.
Hadassa
Hadassa, thanks for the extra info. Apparently, his declared profits/interest were higher than anyone considered normal or possible. Proving again, that if it seems "too good to be true, it's probably a scam."
Shalom!
Among other factors, Madoff's dividends (I think that's what they were) were consistently 10%, year after year. The number isn't so high - it's the roundness and consistency that should have tipped more people off.
Hadassa
It's said that many wondered how he did it. They didn't want to think that he was lying and cheating.
Hadassa, it reminds me of all the dangerous pressure on us for the "peace scam." The fact that each "peace" agreement brings more terror and death is ignored.
Post a Comment