Bernie Madoff on the Modern Stock Market
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I have started and managed several small businesses. It is hard to run one set of books for a small business. There are other people involved — not just the head of the company. There are bookkeepers, lawyers, accountants, regulators, tax preparers and auditors.  The books have to be straight because so many people with so many different interests get in them. Brokerage accounts add another layer of complexity. Add money management and that is even more complexity.

And we are to believe that one guy could run a brokerage and money management firm with two sets of books and siphon off $50 billion? And no one knew?

This is the financial cover story equivalent of the yarn that a few devout Muslims hijacked two planes that hit skyscrapers that then magically collapsed leaving their passports and a copy of the Koran sitting on the sidewalk.

So…who has the $50 billion?

Madoff Victims Threaten Legal Action

Bernard Madoff Arrested Over Alleged $50 Billion Fraud
truthout.com (12 Dec 2008)

Geneva Banks Lost More Than $4 Billon to Madoff: Report
Reuters (12 Dec 2008)

Judge Signs Order to Protect Madoff Investors
Yahoo Finance (15 Dec 2008)

List Of Victims Of Madoff’s Alleged Ponzi Scheme
FINalternatives.com (15 Dec 2008)

Scam Victims: Finance Giants Count Losses
Yahoo Finance (15 Dec 2008)

SEC Had Chances for Years to Expose Madoff’s Alleged Ponzi Scheme
Wall Street Journal (15 Dec 2008)

Impact on Jewish Charities Is Catastrophic
Wall Street Journal (16 Dec 2008)

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8 Comments

  1. What’s in a name?

    One of the main people in the Treasury Department is named Kaskari, which sounds ominously like

    CASH CARRY

    GO figure

  2. i wouldn’t invest with someone named made-off (madoff) any more than i would have put someone with the name cash&carry (kashkari) in charge of the bailout…

    good one rich!

  3. Well, I am apalled at the status quo. It is good to have some where to pin the tail on the donkey. These poor Chariatble agencies are going to have to go to the public for donations to do anything. But when it that bad a hit you cannot even keep the doors open.

    I am part of the ‘church mouse’ folks who have lost their investments and savings from earlier senarios and sometimes from crooks. We are living fairly well with Intitlements and they have already made a hit to those in California. We survive because of these small villages and housing that is subsidized by the government or we would all be at Salvation Army or what they call Loves and Fishes here. In our immediate village we are the ” real low income poor” and usually receive yearly what they call a ‘Rental Rebate’ and after granting that small $300 ( depending of course on your income) it was taken away because the folks doing our Budget here spent 18 days to figure out our State Budget And they needed funds for their time and a bonus too so we heard. Everyone who received that announcement soon realized when another was coming. As all the low income folks held thier breath to get this fund and maybe catch up on thier budgets… . SO SORRY NO REBATE FOR YOU THIS YEAR> I think this is a little HIT But I dearly hope it is not a precursor of things to come. In my little HUD village everyone is just hoping and praying we do not loose our rental state or many of us on pure Social Security would be living under the Freeways or whatever. Sacramento California rents are off the wall. These dear villages enable low income senior to not end up in Nursing Homes if they take care of themselves.

    Thank you for your great site I am so glad that I found you as I have been looking for someone who can report the straight news about what this DEBACLE is all about. Suz

  4. I heard your interview with Art Bell on Coast to Coast last night and a few weeks ago as well. I used to be a mainstream media (Fox News mostly)) and talk radio junkie. Although I think a few talk radio hosts kind of understand the “financial organized chaos” that’s going on, they either can’t or won’t say what’s really going on. That would be, a systematic and criminal deterioration of financial markets for decades. So, I’ve been listening to Alex Jones and Coast to Coast for a few months. Needless to say, what I used to think was simply political games engineered by corrupt politicians, (on a national and international level), has been turned upside down. I live in one of the wealthiest counties in the country (Somerset County NJ), where many of my neighbors and friends work (or worked) on Wall Street. I’m trying to educate them about getting alternative, under the radar information on the economic collapse, which seemed orchestrated to me months ago. This includes Madoff. When I heard the news about him last week, I said to my husband, there was no way he and a few patsy’s, for years, created an unknown “ponzi” scheme. There is no question people in the highest positions in government, the SEC, and other banks (banksters) weren’t involved. As you said last night in your interview, some other entity pulled the plug on Madoff, as equity, liquidity, and resources dried up internationally. I’m sure a good deal of the “assets” from his firm have been squirreled away somewhere (Israel?). Anyway, thanks for your refreshing honesty and professional transformation of seeing things from the inside…out.

  6. OK I will call myself a prejudiced, stereotyping racist right up front. Actually, I’m not, but the question I’m about to raise will certainly make me appear that way. Just trying to deal with the facts as they are presented.

    You ask where is the $50 billion (I’m guessing it’s more like $25 billion)?

    As is apparent from the news reports, the entire Madoff story is a story about the elite of the Jewish community in the US. Investors, money managers, and the family business in NY. I have no problem with that.

    Why, then, was Bernie’s right-hand man on the 17th floor of his business, and seemingly the guy who knew more about that operation than Bernie’s own brother and sons on the other two floors, a gentleman named Dipascali and represented by Rudy Guiliani’s law firm? Frank’s key role was reported on Bloomberg yesterday and in a Wall Street Journal story today. It just doesn’t fit with the overall picture.

  7. Care to comment?

    Interventional Analysis: A New Investment Perspective
    http://mysite.verizon.net/res6poiu/id28.html

    Technical analysis assumes that there are only two parties in financial markets, those desiring profits and those fearing losses. In the vast majority of investment vehicles this method is successful. . . . The problem arises when it can be shown that a third party exists in the investment calculus–government.

  8. Dear Catherine it is very refreshing to read your take on this. Your perspective, unlike MSM, is based on truth and real experience.

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