dcb

Madoff's Investors Don't Deserve Compensation or Sympathy

I make this comment many times to friends. The fact that one is legal, yet the other is not is only a minor difference. When you buy something with your good money, and that thing is leverage, you are infact paying your good money for nothing (debt). You are not told this. So in fact in each instance the people are paying for nothing with their money. they are getting a future income stream based in that debt. with madoff you were getting a future income stream based on new investors. the whole sstem turned out to be one huge ponzi scheme and the peope who ran and desigend it are still doing so.

Pandit in my view is symptomatic of the whole disease, and should be shot. His hedge fund was only based upon buying bonds with cheap leverage. You were in fact just buying with good money nothing. It blew up, he made hundreds of millions and became head of citit.

Now the fed is attempting to make credit cheap again so wall street can do it once more.


On Jul 01 09:31 AM stfree wrote:

> Invest with Madoff and you get 0.00 return when the music stops.
> It was a fraud so he goes to jail and his assets are stripped. OK
> so far.
>
> Invest in some SIVs, CDOs or ABSs from their big name creators and
> you also get 0.00 return when the scheme has run it's course. Insurance
> (credit default swap) is worthless - rating agency assessments are
> worthless. All these folks also tacitly conspired to perpertrate
> a fraud. But it's a fraud that has no "face". So nobody goes to
> jail and the perps get to keep their "bonus" for their participation.
>
>
> And Citi is still doing it TODAY.