Chris Butler_

Madoff Investors Deserve Sympathy, Not a Bailout

This is a great example of just how silly the SEC can be. To invest in Madoff's hedge fund, you had to have been an "accredited investor" with a net worth of $1,000,000 (this may have been modified since the law was written in 1933), or an institution, where it is supposed that proressional guidance will be retained to evaluate the merits of the investment. Why does the SEC require a $1,000,000 net worth to invest in hedge funds, you ask? Apparently, rich people don't make bad decisions. Wisdom is positively correlated to personal income and wealth. While the rich don't always get richer, the US federal government, under the misguided notion of "looking out for the little guy" has effectively given the rich more opportunities. I shed no tears for these "wise" hedge fund investors with $1,000,000 net worths that got swindled by Madoff. I'm sorry for them. But I'll still get to sleep tonight just fine.

I'll gladly pass on this little bit of wisdom that I, a non-accredited investor, have been able to accrue over the span of my life - there are wicked people out there who will steal your money. They may even lie to you. That little chunk of wisdom is free of charge.