Look Who Madoff With Your Money

[BBKing]

Innocent until pleaded guilty, of course.

http://www.guardian.co.uk/business/2...-victims-court

Now he's officially guilty. That's a mighty pile of fraud there. It's also an illustration of a kind of inverse racism - rich Jews thought that they could trust one of their own implicitly, when of course, because all humans are humans, you should treat people as you find them, not because of the ethnic group they belong to. This works both ways.

[Osem]

Originally Posted by BBKing

Innocent until pleaded guilty, of course.

http://www.guardian.co.uk/business/2...-victims-court

Now he's officially guilty. That's a mighty pile of fraud there. It's also an illustration of a kind of inverse racism - rich Jews thought that they could trust one of their own implicitly, when of course, because all humans are humans, you should treat people as you find them, not because of the ethnic group they belong to. This works both ways.

Well I have a fair idea of how his victims would treat Madoff if they could find him...

[nomadking]

The thing that puzzles me is that other Hedge Funds invested with his Hedge Fund. Did they not think that if they couldn't make that sort of return themselves how was he actually meant to be doing it.

[BBKing]

There's a theory around that most of them knew he was bent in some way but thought that by riding along with him part of the way up and then getting off, they could make big bucks. Obviously some got left holding the baby.

Ironically, one of the first people to twig to Madoff realised he was phony because his returns were too smooth. This, he suggested, meant they weren't related to any underlying market activity, and indeed they weren't.

He was ignored, of course.

[altis]

Why do folks still get caught by 419s?

Greed.

[BBKing]

Misplaced trust, too. People trust each other more when times are good. There's a whole set of human biases involved here, like the one that says 'because I've made a pile of cash, I must have good judgement, therefore the decision to stash my cash with Bernie is good judgement, because I made it'.