sunil94062

Where Is Madoff's $50 Billion?

WSJ reports that the gross amount claimed lost by people as of today is close to $30B! Folks have come forward and reported their 'claims' and these are now listed in public display.

One would have to assume that this $30B claim is all Pincipal and not Principal plus this bogus accrued interest.

Logically,

It is possible that many were content with Madoff re-investing the 'accrued' interest, but many apparently used this accrued interest as cash flow to live, so actually withdrew their monies, periodically if not monthly. In matter of fact if a person invested $100, 20 years ago, then, if he or she withdrew the accrued 10% money annually, they would be sitting without a principal loss at this stage! They actually made money. Who are these lucky few?

We are also told (by filings made to the SEC annually) that Madoff did not actually invest any more than $1B in the market, and since his trading strategy counted on an upward biased market (Buying S&P 100's and selling a call and buying a put simultaneoulsy), he would have made money most of the time, except this year, when the market tanked sharply. The suddeness of the nose-dive, would pretty much wipe-out the $1B, as his collars were at most +/- 5%! and any losses beyond that rate should hit him broadside. So maybe he lost $1B. That means he had $31B to start with and now has $30B.

I think, the 'real' money, if one is to believe that $30B of corpus was lost or is missing, has to be sitting somewhere! Madoff charged no Fees for his skilled management, obviously had no operating expenses, since he worked out of a threadbare office with one secretary and did all of the work himself and a 3 man CPA certified the accounts annually, and said that the only income he generated from the corpus were commissions from trades - so what are we talking - a few million $'s over the years at best in this day of discount commissions especially on trading of indexes.

Interestingly he also stated that most of the trades were through other broker dealers - and not his shop! So he kept next to nothing of those commissions unless he got kick-backs.

So it appears highly implausible that a man with his alleged shy demeanor lost this money. Lost on what? He did not eat the $30B type money. Impossible. He claims to only own three homes and a yacht. That isn't $30B! If the claimaint's are are to be believed, then the money is around folks.

It appears only too 'nice' that his sons turned him in. There is no way, plausible, that this man ran a giant ponzi scheme for years, right under the noses and eyes of his kids and wife. Surely the talk at the Dinner table has to circle around 'how are we all doing' and related financial matters? You can't tell me that the wife (with whom Bernie slept each night) did not know how money appeared in their bank accounts, month after month and year after year. She filed tax returns? right? Surely they got 1099's? W-2's? No?? How come?

Huh??

And I am sure the kids and the Parents partook Dinner together many times during the last 20 years! I would be dumbfounded if this otherwise voluble man (as seen on TV interviews and House testimony) would remain mum and silent and not let on what he did with or at his day job for 20 years! Not possible. This is one giant charade. Bummer no one is really getting to the bottom of this fast - as there is no way that Bernie worked without any Banks - and with this kind of money. It can't be that he Banked with a small Community Bank - it has to be with the Majors. JP Morgan. Bank of America. CitiBank etc.They can and should quickly, in this digital age - print out all of his bank statements for all of the past years and follow the debits and credits. Man, I could do this research in a nano second! Plus, every Bank is required to report transactions of $10,000 or more to the IRS. How can it be that we need Bernie to tell us what became of the money?

Huh??

Pleeesee!

Could it be that some 'honchos' or 'politicos' don't want these facts/secrets out?

It is well near impossible to decently spend-away or lose-away $30B in 20 years, and without notice. Unless he stood on top of the liptisck building each day and rained $100 bills to the walkers below, and that is how it is gone!

His family - all of them, are complicit, as are his brokers and bankers.

Stop the charade.

Signs That the Credit Crunch May Be Over

BUT imperically - I can vouch for the correctness of the media news - that Banks - and many of them are NOT lending - at least not for Real Estate! We have been trying to get loans since October ($3MM to $50MM for various projects - rental apartments, senior housing, serviced apartments) - and all we hear are an unambiguous NO! No money to lend for Real Estate - No money to lend for working capital - No money to lend for credit lines - secured or unsecured, No bridge finance, pretty much NO lending. This includes Banks of every ilk - Majors to Community Banks and thrifts - nationwide from our sampling.

As further proof, I have heard of professionals (Doctors and Lawyers), who have had the APR on their credit card outstanding balances ($1,600 balances) jacked up into stratosphere (from 10% to 21%) and credit limits cut drastically (-90%). NO - credit is surely 'crunched'.

When asked, the decision makers at these Banks respond - All of the TARP money is being "held" as a cushion to offset portfolio losses not yet booked - and there are many more to be realized in times to come!

Maybe what we have here is that there three kinds of lies - lies, damn lies and statistics - and statistics are the worst kind!

I think Treasury goofed!

That is how I see it.