Drew Horn

Lesson Learned from Madoff's Ponzi Scheme

Many, if not most, of Madoffs investors are /were wealthy, too wealthy to take the time to learn about investing and /or to take the time to make their own investment decisions. They didn't and don't want to be bothered with details. They only want more money.That's the reason Madoff's scheme worked.

If they had a list of the specific securities he used, that probably would not have helped because he could have and probably did lie about it. If they had accurate information about where their money was, that might not have helped because the securities raters didn't do their job. Many of Madoffs clients used "Financial Advisors" of one kind or another, and they didn't do their job.

There is an opportunity here. PRIVATIZE THE SEC!