The biggest fraud in history?

… well, let’s put it this way: only as of right now, this very minute. So, IOW, just wait

During the recent long-winded bull market, it seems like everyone and his low-life scum brother-in-law opened a “hedge fund.”

So, ahem, like Madoff, they too could say they “made off” with their loot.

During a much-needed bear market cycle (which helps to correct the excesses of the past, recognize and integrate failure, and cull the weaker of the monetary herd), well, Ponzis get chased out into the open as their losses mount past the point where the capability of even the most “legitimate” looking scam artist to keep the facade looking neat and clean implodes. There, the most distracted of regulators can no-longer be a silent co-conspirator and must act in order to keep his job and maintain the facade public’s perception of <ahem> probity.

Does the fact that this currrent world record-holder was a bastion of the elite surprise you?

I knew Madoff was cheating, That’s why I used him [Mish]

Madoff Madness Fallout [Mish]

Just when you thought you dodged a bullet, it circles back around to get you [WSJ]

A List of Bernie Madoff’s Hosed Clients [alleyinsider]

Putting faces and names to the fraud: victims speak out [NYDN]

Hedge fund body wants TARP help for Madoff victims OK, they thought he was (illegally) inside-trading by his exploiting his contacts, not running a Ponzi scheme. Geez, I guess since his co-conspirators investors “guessed” wrong, they should get their money back? BTW, who will they get that restitution from? Oh, the taxpayer? BOHICA! [Reuters]

Regulators were warned about Madooff in 1999 – “Madoff Securities is the world’s largest Ponzi Scheme,” so there.  [economicpolicyjournal]

Rogue Nation

Bernard Madoff was exposed because declining prices crippled the mechanism of his fraud, as they always do. To his detriment he was not an integral segment of the banking system. If he had been, he might have merely been declared insolvent, retained his honor and his bonuses, been backstopped by the NY Fed, and put into an arranged merger.

… History informs us that most of the perpetrators will never be prosecuted, and even though exposed will eventually once again become respected members of society. This is how it was after the Crash of 1929.

… Indeed, we are already see many of the characters who helped to set this credit bubble rolling in the 1990’s coming back into government service with the new ‘reform‘ administration.

[Jesse’s Café Américain]

“Panics do not destroy capital; they merely reveal the extent to which it has been destroyed by its betrayal into hopelessly unproductive works.” -John Mill


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