Comments on: Madoff’s $50 Billion Ponzi Scheme

By: Spanky Davis

Spanky Davis — Wed, 24 Dec 2008 08:12:17 +0000

greed. rich people wanted more and more.

By: E

Tue, 16 Dec 2008 16:23:35 +0000

AMEN! to XMEN. Thats exactly what I’ve been thinking since all the latest headllines read: Fraud, liars, cheats etc. I’m glad there are others out there that are concerned with the heightened level of immorality we’re facing everyday. Its very sad.

By: xmen

xmen — Tue, 16 Dec 2008 14:11:51 +0000

Putting all the scholarly thoughts aside and the “should haves” to rest. The simple fact is this man and many others like him are criminals of the worst kind and these kinds of people are becoming the norm. Our society has developed into one that has allowed immorality and dishonesty among those in the highest places. This includes politicians, priests, sports figures, and business leaders to name a few. The punishments that are handed out to these villains are in no way equal to the crimes they commit. Especially when some of those who are equally dishonest and evil in their own way are handing out the punishments. The answer to these problems and the punishment required is a simple one that dates back to the beginning of mans existence. If Mr. Madoff’s fellow villains could see him hanging lifeless and naked from the gallows, I guarantee you we would see a paradigm shift in the realm of honesty and morality among this countries villains. Those who are brave and honest should be recognized, rewarded and showered with our gratitude. Unfortunate? Yes, but very necessary to combat the steep decline this country is falling into. Honesty and treating fellow humans with love and respect cannot be taught to those who do not possess these traits. It is a disease with only one cure.

By: jim

jim — Mon, 15 Dec 2008 19:53:11 +0000

Another thing this issue highlights is how much research an individual needs to do when picking mutual fund investments. You could have the bad luck of owning several mutual funds that all invested a bit in Madoff’s funds and end up with a high percentage than you’d like. The one thing all this economic turmoil has taught us is that we need to read more about what we’ve invested in because no one else will.

By: Ed

Ed — Mon, 15 Dec 2008 19:43:30 +0000

I think Brad hit’s the nail on the hit here. Consistanly high gains is not normal in a market. I know someone personally who had lots of money with one of Madoff’s investors. During the past year my friend didn’t lose any money but had gains… you have to wonder why you’re making all this money while you’re in the midst of that.
Another bad habit is keeping all of a portfolio with one firm, like my friend did. If something happens to it, you lose everything.

By: Brad

Brad — Mon, 15 Dec 2008 16:28:31 +0000

Many of the “victims” were driven by pure greed, in which the drive for higher returns negated the years of reports of this guy’s questionable returns.

It is very important to question unrealistic gains and promises of consistantly high returns. The funds investing were financial firms and financial professionals. No one paid attention to the people calling this company’s returns unrealistic?

It is also an important reminder to know where your funds are invested and to not invest in one basket alone.

By: jim

jim — Sun, 14 Dec 2008 14:16:47 +0000

@Dave: I think they did trust him, I mean he was once the chairman of the Nasdaq and, until this incident, very well respected. I think he should write a book and then use the proceeds to repay the people he stole from. I’d really like to read what went on in his mind… the guy pioneered market-making, he couldn’t have been doing that poorly in the money department.

By: Boogie

Boogie — Sun, 14 Dec 2008 08:56:16 +0000

“How are you supposed to protect against that?”

Simple. Have an independent auditors. SEC should employ numerous CPAs (preferably honest) who can evaluate and who would have a full access to financial statements of hedge funds/capital management firms whenever they want.
The whole 50-billion dollar Madoff scheme (as you might have read) was “presumably” under the audit of an almost fictional 1-person CPA firm somewhere in NJ.
It looks like folks over at SEC should be invited Congress soon.

By: Eric N.

Eric N. — Sun, 14 Dec 2008 07:05:14 +0000

I’m glad I am no one near that mess. I feel bad for all the unknowing people though.

By: Dave

Dave — Sun, 14 Dec 2008 05:09:27 +0000

I find this absolutely amazing. The fact that he was able to get away with it for so long just baffles the mind – I read that he never showed anyone the books and he had some small town firm do the audits on them (which I’m sure he paid off).

I also find it crazy that he had so many high profile clients – do people just get dumb when they become rich? I can’t imagine giving that much money to someone I didn’t trust.

I also wonder if this is going to get some government agency to start checking on all the mutual funds out there and uncover more of these things…

By: Cap

Cap — Sat, 13 Dec 2008 22:11:02 +0000

This entire episode just out right blew my mind away. Not just the amount involved, but the stature of the person in question. Sigh.