...and then some are lazy ostrich investors...they just want returns, they don't ask how or why something is as it is..they put TRUST in the person that is the "handler" or LAZY TRUST in the friend who referred them..people like to brag when coming into a sweet deal--they want to get their friends in on it--what the friends do not know is that their trusted Golf CC acquaintance or relative has no clue....THEY JUST WANT IN.
The majority of people do not invest that way--if they have any sense about them.
The returning fox knows there will always be more rabbits hanging around the same hole.
Question is..why did a rich man like Speilberg, for instance, with trusted financial [the best] people who have performed for him over the years: need to go rogue with someone like Madoff?
Sorry, I attribute it to simple human greed and human nature.
Madoff's investment appeared to be making astounding, unexplainable returns. Massive growth. I have no clue why someone wealthy like Speilberg would "invest" with Madoff, except that enough is never enough. Everybody wants more. If you have cash, you want to put it to work, not sit on it. You want it to grow as fast as possible. Even if you are mother Theresa or Akiane and only want to give it away to charity at somepoint, it is human nature to want more and to want to maximize your investments.
Madoff appeared to maximize everybody's investment. Except that he violated the simple rule that all honest men know, which is "If it seems to good to be true, it probably is."
Many of his clients knew he was cheating, they just thought he was cheating others, and not him.
"So why did these smart and skeptical investors keep investing? They, like many Madoff investors, assumed Madoff was somehow illegally trading on information from his market-making business for their benefit. They didn't consider the possibility that he was clean on that score but running a good old-fashioned Ponzi scheme."
"Good grief. Anyone who invested with Madoff thinking he was gaining on insider trading deserves to lose it all. "
From this source:
http://www.marketwatch.com/Community/groups/us-politics/topics/madoff-madness-knew-he-cheating
"Good grief. Anyone who invested with Madoff thinking he was gaining on insider trading deserves to lose it all. "
From this source:
http://www.marketwatch.com/Community/groups/us-politics/topics/madoff-madness-knew-he-cheating