New York City apparently has no lock on Ponzi schemes. Perhaps Madoff is just the tip of a large iceberg that runs the length of America.
According to The Wall Street Journal (subscription required), "Idaho securities regulators are investigating allegations that a money manager in the state operated a long-running Ponzi scheme that cost investors as much as $100 million."
In Idaho, the value of the dollar is such that $100 million is worth about the same as $50 billion is worth in NYC.
What the news shows is that the great bull market in assets from stocks to real estate clearly allowed a number of people to dupe investors by claiming remarkable returns In a flat market or a down market, claims like the ones that Madoff made would not have been believable.
As the Dow rose to 14,000, almost anything about making easy month could appear real. Now the chickens have come home to roost.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-18-2009 @ 12:42AM
flax23 said...
A true recession uncovers what the auditors missed or overlooked!
1-18-2009 @ 4:56PM
douglas m. fabish said...
Nobody seems to be noting the correlation between the World Bank selling gold and the drop in the price of gold to the low $700's in the fall of 08, the inability to take physical posession or buy gold during this period, and Madoff's disposal of assets.
Madoff the crook would be a whole lot more believeable if someone could show me some character defect. Instead I see a man of honor who probably saved a whole lot of people's butts as the American dollar decends to worthlessness.
1-19-2009 @ 9:15AM
BHarrison said...
RE: douglas m. fabish said...
Madoff the crook would be a whole lot more believeable if someone could show me some character defect. Instead I see a man of honor who probably saved a whole lot of people's butts as the American dollar decends to worthlessness
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How perceptive that Douglas can perecive all of this "honor" in the likes of Madoff. Perhaps he might do well to inquire about the opinion of those who lost their life savings or other substantial monies with Madoff.
With people like Douglas, the "Madoff of the world" are sure to flourish. How can any rational person of any integrity make a statement such as Douglas . . . Hmmm . . . the world is full of strange people with warped perspectives.
1-19-2009 @ 12:29PM
diana h said...
i was caught in a ponzi scheme by someone still doing it in england. please stay away from them.