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Bernard Madoff Arrested


When Skies Are Grey

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What again makes it frightening as far as I can see is that he "only" had $15 Billion of investors' funds, the other $35 billion was lent to him by the banks etc. It'll set off another round of pass the poisoned parcel as banks stop lending to everyone as they try to work out who's actually taken the hit.

 

Maddoff - thought he was a master of the universe - infact he's just a guy who got lucky and then lied and cheated to maintain the illusion of success.

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I have been thinking about the people/companies who lie and cheat to maintain a facade lots recently, it strikes me there are a lot more of them about. The spend spend spend mentality has to go, governments should be leading by example. All of these things that are benefitting a few will cost the masses for decades, that man is 70, 'Could face up to 20 years in prison'....So what? I doubt he has had a hard life up to now and I doubt he will end up in the same prison as a normal civie would, there is also the chance he might string out the court case so long he dies before 'justice' is ever done.

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A Ponzi scheme is a swindle offering unusually high returns, with early investors paid off with money from later investors.

 

so a bit like the inevitably impossible final salary govt pensions schemes* then :)

 

* ETA: not IOM specific - I mean everywhere that does them

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I have been thinking about the people/companies who lie and cheat to maintain a facade lots recently, it strikes me there are a lot more of them about. The spend spend spend mentality has to go, governments should be leading by example. All of these things that are benefitting a few will cost the masses for decades, that man is 70, 'Could face up to 20 years in prison'....So what? I doubt he has had a hard life up to now and I doubt he will end up in the same prison as a normal civie would, there is also the chance he might string out the court case so long he dies before 'justice' is ever done.

 

I agree, it wouldn't seem like justice to me for him to be put in prison. I think of better of ideas.

 

But people and companies are going to lie and cheat if they can and if they can benefit from it.

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I see that smug snooty bitch Nicola Horlick had £10m invested into his fund. So much for the 'super woman' of the City. As were finding out most of these 'masters of the universe' are bullshitters, tricksters, or liars who have pissed away trillions of our money to fund their own lifestyles. The fact that your pension fund might be taking a hit for the next 30 years is irrelevant to these shysters.

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Dec. 13 (Bloomberg) -- Hedge fund investment adviser Aksia LLC warned clients not to put their money with Bernard Madoff after learning of “red flags” at his company, including that its books were audited by a three-person accounting firm..

 

The letter they sent out

 

http://graphics8.nytimes.com/packages/pdf/...ness/Madoff.pdf

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"Brad Friedman, a lawyer for some of the investors, said: "There are people who were very, very well off a few days ago who are now virtually destitute."

 

When I was young, I was taught: "Never put all your eggs in one basket".

 

If people learn nothing else from all this, I hope they learn that.

 

S

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"Brad Friedman, a lawyer for some of the investors, said: "There are people who were very, very well off a few days ago who are now virtually destitute."

 

When I was young, I was taught: "Never put all your eggs in one basket".

 

If people learn nothing else from all this, I hope they learn that.

 

S

 

the snag is that these days you have no real idea of who's basket your eggs are in. the banks and other financial institutes lend and borrow from each other that much it is a house of cards. at the minute they are throwing away certain cards with inflated debts in a hope that what is left can still stand. most of a banks assets are not actually their own, it is just a paper balance on what they owe against what they are owed. every bank has more owing than it has in its own assets. for the purposes of a world economy you maight aswell say there is ONE bank, that sghuffles money on paper where it needs to be seen at the time to stop folks panicking and wanting their money back. why would any bank lend money on a finacial basis to a third world country to waste on guns??as i said elsewhere, if every investor wanted their money back, the banks wouldn't have funds to cover it. they are effectively a legal pyramid scheme where the savers are funding the borrowers and investors and the banking staff are leaching a living with HUGE bonuses at the savers expense. if you can afford to save it, you can afford to loose it seems to be the way they operate. there are a few folks in the know who move their money or get it out at the right time, but for many it is a gamble that you don't know the odds of. how can abank pay huge bonuses to the guys at the top and only months later be broke?? if the funds at the time were that good to pay the bonus, where are they now?? my answer is the funds were never there really, just numbers on paper.

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