What isn’t a Ponzi scheme nowadays?
This can’t damage anyONE. Get it?
These are only Leftists involved. Now if it was Enron, with any connection to EVILBUSHCOCHIMPYMCHITLER, it’d be above-the-fold front page.
So what is the downside of running a $50 billion dollar ponzi scheme?
Wall Street sure has a lot of dry-rot.
The quote attributed to him may be uncharacteristically straightforward, but it just sounds like your typical highly leveraged hedge fund blowout, writ a bit large.
New money goes into one, and then the other, and back and forth over a long period of time.
It's kind of like the deal your broker wants to set up that gives you several investment quality stocks, and gives you a fall-back with bonds (preferably US securities in recent months). It also enables this kind of crook to point to how much money people are making in OTHER funds he controls. At the same time he doesn't tell new investors about the other fund where they're losing their shirts to the fund making the money.
Anyway, the next step is to convince your hedge fund managers to use ETIFs as an "operating bank". With $50 billion bucks supposedly under management, you get an idea of how he could do this ~ the largest ETIFs are far smaller, though numbers of them float around $5 billion to $10 billion.
There is NO WAY your clients can keep up with this by watching the market indices. They have to assume you've spread their assets around to reflect the markets, so they do.
Not surprising the guy ran this for years. He was also big enough to get away with "naked short-selling" for a very long time.
BTW, one reason to use an ETIF as a "bank" is that NO ONE IS WATChING. After all, these things are not businesses with real expenses ~ so the focus is entirely on the market indices. If the ETIF goes up $5 billion every now and then no one cares except the other guys moving in and out of that ETIF. They cash in, move on to other stuff, and keep their mouths shut.
No doubt there are other operators running the same scheme.
I will predict that confidence in the markets tomorrow will be shaken to the core!
Name that party.
This is mind-boggling. How many more firms out there are doing the exact same thing? If Madoff is a crook, anyone could be a crook...
Everyone has lost their minds.
OMG, what a surprise!!! Who will be next? The Fuhrer-elect?
This is right on the heels of last week’s indictment of Mark S. Dreier, founder of the 250 lawyer Dreier LLP. This idiot had everything, but needed more. He thought he could pull off a Scooby-Doo like caper of flying to Toronto, brazenly impersonating a pension fund lawyer, and bluffing his way in their their own boardroom where he called an inprompt meeting and sold 40 million dollars worth of worthless promisary notes to a hedge fund client who was there on other business. He got caught and had his ass thrown in a regional jain for three days and is facing serious time in Canada. He bailed out and was re-arrested in New York for apparently ripping off clients there for 118 million. It’s a fascinating story of brazen balls, unchecked greed, insanity and “masters of the universe” hubris. Everyone’s packing boxes in his firm this week and fleeing like rats from a sinking ship-the entire company imploded in one week like a neutron bomb hit it.
The Japanese market just went off a cliff.....
Al Ponzi must be rolling over in his grave these days. He never got a cut of any of these operations, I bet.
The biggest thieves in our nation use the “law” to steal from our hard working people the next biggest group of thieves use pens to do their dirty work. Most of these two groups have been trained by our universities in their ... uh ..... trade, in what are called law schools. It’s kind of nice to see them sacrifice a few now and then.
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Securities Traders State of NY link= http://stany.org/Home/about_us/board_of_directors.aspx
• Larry T. Birch Bernard L. Madoff Investment Securities LLC President Where’s Larry?
The key : Accounting. Never ever put funds to private unaudited “trust me” operators.
Capitalism with no underlying Christian principles will fail every time.