http://clusterstock.alleyinsider.com/2008/12/how-bernie-madoff-could-have-lost-50-billion
It was revealed this week that Madoff has swindled clients up to $50 billion dollars over a few decades through an elaborate "Ponzi" scam cooked up by him. To me, this scandal is the worst that could happen in modern times. Rich folks are enticed by the steady returns they could get from investing with Madoff, but because of greed, now they have to pay the price. To me: the common folks will never entrust their hard earned money to Wall Street ever.....
Once more details are uncovered, it would have ripple effects throughout the hedge fund industry, and threaten to pull down the world markets down with it, as redemptions are going to pile on top of one another. Deleveraging is still alive and healthy, lest people has forgotten.
Again, this has shone a bad light on the ineptitude of the SEC, specifically Chris Cox, who has repeatedly failed to safeguard investors' interests, through the short-selling ban fiasco and now Madoff. He will certainly go down in history as the worst financial regulator "ever". And to think that US taxpayers are footing his salary and bonuses, this is OUTRAGEOUS, bar none.
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