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NY Post (business section) is on the case and has a series of articles on Madoff and consequences of this blow up. He was a big liberal Democrat donor and so were many of individuals who invested money in his fund for management.

Extracted links to other NYP articles:

Jewish Circuit's Faith Is Shaken
Florida Elite Loses Its Juice
Alarm Bells In 1999 Ignored
A Life Built On 'Bull'
Keystone Kop Of Wall St. [Spitzer]
Charity Trustee's A Bustee [Robert Lappin]

1 posted on 12/14/2008 2:28:59 PM PST by CutePuppy
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To: CutePuppy

Not that it’s relevant, but I wonder how many Obama supporters were caught up in this? I suspect quite a few based on the description of the investors.


2 posted on 12/14/2008 2:31:36 PM PST by tips up
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To: CutePuppy

Much related..

http://www.freerepublic.com/focus/search?m=all;o=time;q=quick;s=Madoff


3 posted on 12/14/2008 2:32:07 PM PST by xcamel (The urge to save humanity is always a false front for the urge to rule it. - H. L. Mencken)
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To: CutePuppy
in what is emerging as the largest Ponzi scheme in history.

What? Someone is finally unraveling Social Security?

4 posted on 12/14/2008 2:32:34 PM PST by Balding_Eagle (Overproduction;, one of the five top worries of the American farmer.)
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To: CutePuppy

I’m sure that there are plenty of real victims here, but I cannot help but chuckle at the people who have $5M+ and cannot live off a safe 5% return-but need to chase the BIG YIELDS...when I have not even one tenth of that amount and would never trust a person...no matter who with that money.


5 posted on 12/14/2008 2:33:16 PM PST by BobL
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To: CutePuppy

This still smells rotten to me. Think about it, a 70-year old man sets up his sons and probably every other living relative he has for life. He lives a life of luxury for the majority of his adult life then, as things start to unravel, he “confesses” to his sons who then turn him in. He is the only one to take a fall and everyone else does fine. If you have to take a fall it sounds like a pretty good deal. Someone still has enough left to put up his $10 million dollar bail. It seems like crime not only pays it pays well.


6 posted on 12/14/2008 2:36:09 PM PST by Oshkalaboomboom
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To: CutePuppy

If you have money and do stupid things with it, your stupid.

If you give money to somone that does stupid things with it, your still stupid.

These people are not going to bed hungry, I have no sympathy. If they were mostly Dem supporters, well then I’m happy for thier loss. But they are still stupid.


16 posted on 12/14/2008 2:48:18 PM PST by ChetNavVet (Build It, and they won't come!)
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To: CutePuppy
"admitted blowing as much as $50 billion in what is emerging as the largest Ponzi scheme in history. "

Ooops - he forgot about social security.

19 posted on 12/14/2008 2:51:02 PM PST by TPOOH (I wish I could have been Jerry Reed.)
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To: CutePuppy
Employees lost their life savings and everybody is going to lose their job," said one employee

Not to worry. The Anointed One will put gas in your car and pay your mortgage. On top of that, he's going to create 2 million construction jobs to rebuild our infrastructure, so all you need is a hard hat and steel toed boots and you've got a job.

22 posted on 12/14/2008 2:54:12 PM PST by varon (Allegiance to the constitution, always. Allegiance to a political party, never.)
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To: CutePuppy
The scope of this scam is incredible. Investors were not limited to country club friends, but CEOs of well large companies, hedge fund managers as well as domestic and foreign banks.

Successful people, people who knew how to read financial statements, people who knew better were taken in by the hundreds. Madoff is one helluva salesman.

23 posted on 12/14/2008 2:55:21 PM PST by Jacquerie (More Central Planning is not the solution to the failure of Central Planning.)
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To: CutePuppy
Madoff’s firm had traders. If this was a Ponzi scheme (a Madoff admits), what were these guys doing every day? You can't convince me that nobody else knew.
24 posted on 12/14/2008 2:55:39 PM PST by Cowboy Bob
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To: CutePuppy
Leavitt said many were drawn to Madoff because of his reputation for exclusivity. "He had a closed fund, which is why people put more money into it, instead of diversifying," she said. "You couldn't just come in off the street and plunk down $100,000."

Ahhh yes, gotta keep the street riff raff with only $100,000 to invest out of there... Speaking for stree riff-raff everywhere - thank you, thank you.

29 posted on 12/14/2008 3:05:18 PM PST by GOPJ (There are no "tough" issues - just "tough" political consequences.)
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To: CutePuppy

MSM continues not to be able to get very simple facts strait.

This is nowhere near as big a Ponzi scheme as social security.


31 posted on 12/14/2008 3:06:52 PM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: CutePuppy

This guy stole $50 billion and Fox News - the putatively Republican network - spent all night drilling down in the story of that missing girl in Florida. People, if we’re ever going to have an economy again, we need some perspective.


35 posted on 12/14/2008 3:16:02 PM PST by BlazingArizona
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To: CutePuppy

Defrauded investors shouldn’t be worried. I am sure the federal government will bail out their losses.


36 posted on 12/14/2008 3:17:31 PM PST by FFranco
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To: CutePuppy

“He was a big liberal Democrat donor and so were many of individuals who invested money in his fund for management. “

Gee thats too bad. Still it was a better investment than their donations to BO.


38 posted on 12/14/2008 3:19:39 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: CutePuppy
Yet another honorable dimocrat donor who has run afoul of the law.
43 posted on 12/14/2008 3:33:27 PM PST by RetiredArmy (My home is protected by the 2d Amendment!! Locked and loaded.)
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To: CutePuppy

Bernie is such a good Democrat. He contributed to endless Democrat candidates including Barrack Hussein Obama.

Throw the whole family in jail and put Bernie in the electric chair. Lautenberg aka “the Mummy” was a big investor.

You know what the dirty stinking secret is - Madoff first business or main business was market making in stocks. The stories are not telling you that most investors thought Bernie was essentially front running his order flow to get such good returns (i.e. cheating).

This means his traders could see big block of say IBM being bought and Bernie’s traders would trade ahead or buy before those trades were executed. This could boost returns. If you had some pretty sophisticated softwrae this is one way Bernie could have cheated to get an edge - if he had been smart enough.

In other words his investors thought Bernie was engaging in illegal actions to get an edge on the market. Well he was but they were not the illegal acts his investors expected! It was their little secret unfortunately it was not the secret they expected.


50 posted on 12/14/2008 3:54:41 PM PST by Frantzie
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To: CutePuppy

From the article..

***Said one hedge-fund manager who knew many of Madoff’s investors: “There are a lot of people in New York who were rich yesterday and are insolvent today.” ****

Well, flipping burgers ain’t out of style! Get a job!


55 posted on 12/14/2008 3:59:47 PM PST by Ruy Dias de Bivar (NEVER FORGET TREASON!)
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To: CutePuppy

What a fine group of people to defraud!


60 posted on 12/14/2008 4:25:33 PM PST by ConservativeMind (What's "Price Gouging"? Should government force us to sell to the 15th highest bidder on eBay?)
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To: CutePuppy

I actually have a little first hand information about this.

My mother (CPA) had a client (older man passed last year) who was invested in this fund for years.

She says that it was a very strange fund. The end of year documents were literally hand written 1099s with a printout of buy/sells. The worst part for her was that they sales didn’t have the cost basis included. At some point she told the client, it just isn’t worth the aggravation.

So they found a 3rd party who specialized in creating the reports necessary for doing tax returns specifically for this fund.

Anyway, she always thought it was strange that the accounting materials didn’t conform to normal trading reports. She even questioned the legitimacy of the fund.

Here is the kicker though. The fund didn’t report ridiculous returns. She remembers it as 12-14%. Also, she thinks most, if not all, of the “trades” were treasury bonds. The returns were plausible.

Anyway, my parents live in Palm Beach and know that a lot of the limousine libs they know are personally hurt. Someone I know, who is a born into wealth Obama nut told us last night her family may have lost everything.

Personally, I expect a bailout. It sounds stupid, but it wasn’t just individuals who invested in this thing. It was colleges, other funds, hospitals, etc. The downstream impact is going to hit a lot more people than some wealthy left-wing nuts.

I want to be clear that I don’t want a bailout. But, I would bet one will happen. ‘Tis the season.


64 posted on 12/14/2008 5:35:18 PM PST by laxcoach
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