Bernie Madoff’s Victims
How many other investment funds out there are like this? I now come to think how many fools have faith in the system. This firm had 10% of the market flowing through it’s books.
Let me have your thoughts because this is just the tip of the iceberg.
There is never just one cockroach. I keep trying to tell myself that this isn’t as bad as I think, then WHAM! It’s worse than I could have possibly have imagined. Hang on to your hats.
RubberRims said: "How many other investment funds out there are like this?"
Castlewp said: "There is never just one cockroach."
There is one more cockroach and it is a monster!
Think about the validity of the following analogy:
The "Recession" to Madoff, Baby Boomers to The Market.
Madoff claimed his fund was worth X; as long as he never had to liquidate it, it was.
Wall Street says the Market is worth Y*; as long as people don’t sell, it is.
Madoff is a subset of Wall Street Analysts; Madoff’s Fund is a subset of The Market
*With no dividend yield and no prospects of ever achieving a reasonable, inflation-adjusted positive yield, many of the DOW, and the vast majority of the NASDAQ stocks, are close to worthless. I’ve made this point before, but Bernie Madoff just released a $50 Billion Dollar smoke signal that should be a warning of the larger truth here: The Market is overpriced by a factor of…say 10, a handful of stable, dividend payers excepted.
(This situation is very much like that of fiat currencies that work until they don’t; the dollar’s days are numbered.)
I wonder how much of the bond rally can be attributed to those who knew Madoff was about to "come out" moving money from the market into bonds?
His sons turned him in–after the surprising revelation by their father? Right. Let’s hope the prosecution doesn’t fall for that ploy…