stark naked

Don't Be Scammed by Madoff Investor Sob Stories

Dont really care it still hold true - If you play it can go either way. So no crying when you loose!
My view of the bailout is that its payback to the industry for all the money they gave to the politicians!


On Dec 21 05:27 PM PBB wrote:

> Matthew-In all due respect, you have no idea what you're talking
> about. And the comments posted indicated others are equally uninformed
> as to what the investors were told, and what they thought.
> 1. Many of the individuals were not investing in a hedge fund. They
> opened segregated brokerage accounts in a registered broker/dealer,
> and otherwise provided Madoff with discretionary investing over these
> accounts.
> 2. The concept that these people thought that Madoff was making money
> for them by 'front running' is preposterous.
> 3. Its not as if other fund 'managers' weren't delivering similar,
> if not greater returns over the past decade. Paulson (John, not Henry);
> Paul Jones; George Soros (his returns were more volatile, perhaps),
> and even lesser-known people such as Israel Englander's Millenium
> Partners. So receiving 8%-10% per year, when more high profile funds
> were reporting 2x that amount was nothing short of brilliant on the
> part of Madoff. He appealed to the investors sense of conservatism
> and low-risk tolerance.
>
> 4. SIPC provides no more than $500,000 in protection.Nobody knows
> what the average account size was. Let's guess the mean was $2.5
> million--but because at least 50 individuals had more than $10 million
> on depsoit, and at least two dozen had $50 million+, and some representing
> the absolute entirety of their assets (excluding their home, or perhaps
> two homes), those people, at best, will be able to recover $500k.
> The vast majority are in their late 60's to early 80's. That means
> that those that lost every penny will have to wait at least two years
> before they see any SIPC money, if they do at all. OK, they'll have
> $500k to support themselves for the next 15-20 years.
>
> So the typical profile, a 73year old man and his wife, will need
> to survive on a budget of $25,000 per year. That's about $2000 a
> month.
> Is that what you wish on your parents or your grandparents?
>
> Sure, most of the people were smart enough to put in no more 50%,
> and many are left with at least several million to live off. So to
> that extent, you're right, many will simply have to learn to less
> in a less glamorous manner. B
>
> Before you post more comments on this topic, you might want to do
> a bit more research, and actually speak to people that were impacted.
>