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Check out the Bernie Madoff video:

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Category: Credit, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “Madoff Video”

  1. going broke says:

    wow, many damning statements made in that vid.

    I can see his defense now… “”Josh Stampfli, umm, made the program, and, umm, when I last checked, umm, we were broke. I called my sons to let them know, umm, of what happened and now… well, we are here…””

  2. Winston Munn says:

    “It’s a proprietary strategy. I can’t go into it in great detail.”- Bernard Madoff

    Isn’t this basically the same thing the Fed told Bloomberg in response to the FOIA request for transparency about the collateral the Fed was accepting?

  3. Herb2 says:

    “Rule 1: never invest in something you don’t understand Rule 2: If something seems too good to be true, it probably is.” Is that scapegoating the victim? If Wall Street products were bought only by those who understood them, the market professionals couldn’t have created a subprime crisis, and if everyone with a few dollars to invest quit their day job to study the Wall Street products’ legalese, we could all be lawyers and the economy would collapse. As for something seeming too good to be true, that could include expecting the purchasing power of the dollar to be stable. So Joe and Jane Doe invest in the market as a hedge against inflation only to find their savings harvested by professional scam artists, who have every right to be self-righteous, just as the SEC should be expected to be inept and incompetent. Merry Christmas.

  4. KidDynamite says:

    barry – i had previously asked how an individual was supposed to detect fraud by Madoff (and you responded with a reply about managed accounts in the customer’s name). I’d LOVE to hear your comments on this:

    http://dealbook.blogs.nytimes.com/2008/12/15/a-look-at-madoffs-trading-records/

    they even show some monthly “confirms” he sent to clients… i mean – seriously – if you get that in the mail and look at it, how could you question it?

    Look, i understand your point about managed accounts – my account is set up the same way – i can actually log into the account and see the current positions my account manager is making…

    but it seems to me that these Madoff statements are no different from the statements I get from my 401K about the current value of my mutual funds: yet i’m not concerned that Scudder’s funds are a ponzi scheme… while I normally believe in Buyer Beware, I have to sympathize with the victims here, and chalk it up to more than just “ignorance out of greed”

  5. peachin says:

    addendum: After 10 hours of thinking about this, listening to all the discussions of Psychopathic behavior, etc, ad nauseum, more ad nauseum, I think Bernard Madoff cast a big net to catch big fish. Unfortunately, any nets catch the unintended little fish – the cost of doing business. I am very impressed (I don’t care what you think) with his ability to keep this thing up in the air and off the ground (for years.) How he got around filings, registrations – How he must have sent statements to all the “fish” that kept their balances (that read their statements, that believed the statements – monied people) how he must have filed 1099B’s and dividend distributions without raising an eyebrow – was pure genius – I am impressed – In the Hall of Fame of Great Performers – he will go down and be talked about for the next 50 Years. Bernie – see you at the next Kennedy Center for Performing Arts – WOW – way to go!!!

  6. TORION says:

    How I lost money with Madoff.

    I sold a company in 2007, and entrusted my money to 2 “wealth managers” who helped me on asset allocation and diversification. As part of the diversification strategy, I invested in a “fund of funds”. I hated the 2% annual fee, but decided to get access to a spectrum of hedge fund managers through UBP rather than bet on a single one. Well unfortunately, UBP put 5% of their fund in a Madoff vehicle. Fortunately my exposure was sub 1% of my net worth.

    So was I stupid because I didn’t do the due diligence, or was UBP stupid, or was the SEC stupid? The point I am trying to make is that lots of people outsource the day-to-day financial management to experts and do light quarterbacking. I don’t have the time, expertise or information to second guess the financial advice I receive from “experts” with the time, expertise and information.

    Here is my conclusion:
    * if you failed to diversified, and relied on a single manager or fund to generate your retirement income, then yes, that was poor advice and frankly stupid.
    * individual investors are always going to get hoodwinked, particularly if their wealth managers are hoodwinked.
    * investing is so complicated that if you told me to only invest in what I understood, I’d never invest in anything. How many “insiders” can’t tell you whether the stock is going up or down in the two lock up days after an earnings announcement.

    Comments?

  7. mikaeel says:

    1. What happened to diversify. I guess if one investment pays 12% we throw the baby out with the bath water.
    2. If its too good to be true its a proprietary system.
    3. If people only invest in what they understand, brokers would explain the investments.

    I wouldn’t go into a store and buy a dogadodada, ’cause I don’t know what it is. You probably wouldn’t either. But if I put on an expensive suit, pulled up to your house in brand new top of the line BMW and said, dogadodada’s pay 12% per annum you’d give me your retirement savings.

    Definition: dogadodada, nonsense words from a two year old or the same words used by PH.d’s and MBA’s to sell you…basically… nothing.

    Here’s another word we should know the meaning of: A..hole.