Monday, December 15, 2008
News $50,000,000,000
Posted by Dan Savage on Mon, Dec 15, 2008 at 4:41 PM
Slog has been remarkably quiet about the collapse of the largest Ponzi scheme of all times. Bernard Madoff—the former head of Nasdaq—ran a hedge fund that wasn't. Like all classic Ponzi schemes, Madoff paid off old investors with cash from new investors. Unlike most Ponzi schemers, Madoff moved at the highest levels, ripping off top investors, banks, and foundations.
The collapse of Madoff's Ponzi scheme is battering banks, non-profits, charities, civil liberties groups, and the New York Mets.
Fools and their money.
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4
The worst is all the non-profits and charities being affected. They've already been hit so hard by the recession.... What a bastard!
5
@3, here's this year's Institutional Investor survey for a clue of who made some money, yeah:
http://www.iimagazine.com/Rankings/Ranki…
http://www.iimagazine.com/Rankings/Ranki…
9
@3 - no, for the most part, the only ones who made money off of hedge funds (a form of legalized gambling) were the executives of the hedge funds who cashed out by 2006.
(which actually includes one of my cousins)
(which actually includes one of my cousins)
10
@ 3,
Technically, his shop wasn't a hedge fund, but yes, some people do make truckloads of money: The hedge fund managers who usually charge 2% of assets invested and 20% of the profits.
People love these funds when they work, not as much when they don't. One wrong way bet is all it takes.
Technically, his shop wasn't a hedge fund, but yes, some people do make truckloads of money: The hedge fund managers who usually charge 2% of assets invested and 20% of the profits.
People love these funds when they work, not as much when they don't. One wrong way bet is all it takes.
13
I should add that this is an astonishing case of pure securities fraud, involving monthly statements, annual tax statements, trade confirmations, disclosures to regulators and investors, etc., that were totally false. The scope of it is just incredible.
14
Don't miss Henry Blodget's take (and he knows about unethical behavior)...
A lot of investors could see there was something fishy about Madoff's fund, but they figured it must be insider trading, and they wanted in on it!
http://finance.yahoo.com/tech-ticker/art…
A lot of investors could see there was something fishy about Madoff's fund, but they figured it must be insider trading, and they wanted in on it!
http://finance.yahoo.com/tech-ticker/art…
15
must. resist. schadenfreude.
the bilked weren't all non-profit endowments. and the losses of the super-rich i could give a fuck about.
the bilked weren't all non-profit endowments. and the losses of the super-rich i could give a fuck about.
16
It's sure easy to laugh at this and blow it off, but how many of our own 401(k) and/or IRAs have been affected by this as well?
My one hope is that, when this economic mess finally hits bottom and the dust has cleared, no one EVER AGAIN takes seriously the "prestige" of an Ivy League MBA. A kinesiology degree should be looked on with more respect.
18
No, seriously, it should be legal to hunt this guy like an elk, with a special prize for whoever puts his stuffed head up for display on Wall Street.
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