Enron, the Bear Stearns hedge fund defaults, the mismanagement of Lehman Brothers and AIG (NYSE: AIG), the to-date secretiveness of the TARP money allocation, Citigroup's (NYSE: C) missteps that now expose the U.S. government to potentially more than $200 billion in liabilities, or the myriad bad decisions by mortgage borrowers and lenders that sent the housing market into recession would, undoubtedly, be mentioned as candidates for the biggest scandal.
A few 'candid and frank' discussions in CT
Still, during a year-end, holiday trip to relatives in Connecticut, I received "a full and complete report," as we say in the news/publishing business, concerning what many people -- at least what many of my relatives -- feel is the biggest scandal or mistake. Now, my extended family is by no means a scientific survey, but it's a pretty good cross-section of the American public, comprised of high-powered professionals and typical employees; those who've done very well financially, and those who haven't done as well, with all age groups represented.
And what was everyone really peeved about? The alleged Ponzi scheme and rip-off masterminded/perpetrated by Bernard Madoff.
The TARP money's allocation methodology -- particularly if the TARP doesn't meet all of the program's intended goals -- will have a larger impact on the U.S.'s recovery timetable and ultimate economic direction, but concerning the ability to get citizens really ticked off, the Madoff scandal is topping the charts.
I repeatedly heard comments like: "Why would someone managing $50 billion want to steal money or trick investors?" And: "Didn't he make enough money managing the money?"
The sentiment was similar in local shops I visited in Connecticut's small towns. One restaurant owner in Fairfield County with 40 employees was struggling with declining sales -- many Americans have substantially decreased their dining out during the recession -- and was trying to avoid laying-off employees. First he closed his restaurant on Mondays. Then he temporarily suspended the company's 401k matching program. Then he asked everyone -- owner, to managers, to employees -- to forgo raises for at least a year and to pay more for monthly health/dental insurance benefits. Everyone agreed. The restaurant has also cut expenses to the bone.
"Here I am doing everything possible to keep my staff employed and pay my own mortgage, and this guy Madoff wasn't happy making millions and had to cheat everybody," the restaurant owner said. "It shows you how screwed up the country's gotten."
The restaurant owner, an Independent voter, added that he's taking "a wait and see approach" regarding President-elect Barack Obama's plans to heal the U.S. economy, but added that "it's clear a change had to be made." He likes some of Obama's ideas but he's concerned that Obama might raise taxes on small businesses, such as his.
One man with millions, somehow still sees fit to cheat others, while another man struggles to make sure none of his modest-wage employees loses their sole source of income.
If there's a better snapshot than the above of the wrong path and the right path for the nation, I haven't seen it.
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Financial Editor Joseph Lazzaro is based in New York.
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Reader Comments (Page 1 of 1)
1-10-2009 @ 12:32PM
doggy said...
Why do we hear about the JEWS that Madoff screwed ??
They will certainly all get "their" money back - either from other JEWS or the Federal Government (run by JEWS).
It's the poor Goyim that are gonna get it in the rear here - and we ain't hearing ANYTHING about them.
The JEWS that run the news are gonna spin this thing off the board in their defense of their RACE.
And, BTW - why does everybody buy the crap about "religion" or "faith" when talking about JEWS - call it what it is - it's a RACE, not a faith (remember, you're only JEWISH if your MOTHER is JEWISH - that ain't faith NOR religion).
We GOYIM really need to remember that it's us against them - realize that their "bible" (the Talmud) preaches DEATH TO ALL NON-JEWS.
It also says that they may cheat, steal from and RAPE non-JEWS (see Sweden's rape crisis) without penalty.
And, about Madoff's FAMILY turning him in ???
The Talmud clearly states that it shall be "death to any JEW that gives testimony against another JEW to a GOY (they use the "death" thing a lot).
So ... i guess now the JEWS must kill Madoff's sons for turning him in ???
Those fireworks oughta be a "gas" (pardon the pun).
1-10-2009 @ 2:20PM
nick said...
The low point was when CNBC went in the tank for the boy Obama.
1-10-2009 @ 3:56PM
Dan Barnett said...
Nick,
Perhaps it when John McCain couldn't remember how many houses he owns?
1-10-2009 @ 4:45PM
Jo said...
Madoff is a JEW and he was secretly sending the money to the Israeli Occupation Forces. Our support for Israel must end. The US sends 3 billion of our tax dollars a year to the terrorist state. US must say enough is enough.
1-11-2009 @ 1:19PM
john34841 said...
Jo, Doggy you two are idiots. and I am as goyim as any other italian schmuck around.
Madoff was just doing business, it is beautiful. good for him, but too bad his own blood was the turncoats.
the true low point of the decade can't even begin to be fathomed by most commoners, madoff is absolutely nothing compared to what is still unseen to the media.
There are people who do much worse things than what madoff did everyday just because they continue to breathe.