Tuesday, December 16, 2008
What Was Madoff's Exit Strategy?
Econophile asks some good questions:
Econophile doesn't really answer these questions, but he does manage to blame the Fed and government. My kind of guy.
Ponzi schemes are fascinating. Why would anyone do one unless they have a plane to Rio waiting on the runway? They know that they have to get off the train at some point and then it's all over.
Why did Bernie Madoff do it?
$50 billion is real money. Aside from the question of what he did with the money, why did he think he'd get away with it and why did it last so long?
Econophile doesn't really answer these questions, but he does manage to blame the Fed and government. My kind of guy.
Comments:
These guys don't have exit strategies. I doubt most Ponzi schemes are well thought out plans to rip off the public and take off.
For the most part, these are guys way in over their heads who don't know how to get out.
Death or prison are the only exit strategies for them.
For the most part, these are guys way in over their heads who don't know how to get out.
Death or prison are the only exit strategies for them.
I was wondering the same thing. But, seeing Bernie so at ease I thought: "this guy must have cance and know he can drag it out 2-4 years wit htop lawyers." Also, since he knows he's dead he takes all the blame in an agreement with his kids to say Bernie was the only one who knew.
Otherwise, why didn't he run the last $300mm into the ground.
I do agree with Robert that most have no exit strategy.
Otherwise, why didn't he run the last $300mm into the ground.
I do agree with Robert that most have no exit strategy.
# posted by 
: December 17, 2008 at 12:30 AM
: December 17, 2008 at 12:30 AM
If he did not do it on purpose, he was a fool. For that kind of money, a few years in low-security is certainly worth it, provided you managed to put it safely away in off-shore accounts behind mulitple off-the shelf company names all over the world.
but, I think you're probably right. He might not have realized what he was doing - after all, he was just doing what the gov is doing....
but, I think you're probably right. He might not have realized what he was doing - after all, he was just doing what the gov is doing....
# posted by : December 17, 2008 at 10:22 AM
: December 17, 2008 at 10:22 AM
Exit strategy? The only exit strategy is the getaway. The current 'crisis' exposed him and others -- the Fed and their elitist enablers -- for the frauds that they are. Madoff's got no place to go but the gray bar motel or the six foot under saloon. Hubris kept him from slipping away to the anonymity underground. Actually, his investment funds are no more fraudulent than the legal ponzi scheme of Social Security. He just lacks the power to tax!
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