Comments on: The Madoff Red Flags, Let’s Count Them http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html Freshly squeezed market commentary & analysis Sun, 08 Nov 2009 05:37:27 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-53086 Mon, 10 Aug 2009 01:43:46 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-53086 alex, you can just google 'how to use RSS', it is really easy. alex, you can just google ‘how to use RSS’, it is really easy.

]]> by: alex farguson http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-52463 Fri, 07 Aug 2009 17:02:28 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-52463 Hi, I can't understand how to add your site in my rss reader. Can you Help me, please :) Hi, I can’t understand how to add your site in my rss reader. Can you Help me, please :)

]]> by: Bernard Madoff — Hiding in plain sight under the cover of SEC regulation | OpenMarket.org http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36231 Mon, 29 Dec 2008 03:37:33 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36231 [...] While there is no evidence of wrongdoing with regard to Madoff by either Levitt or Swanson, SEC officials, for whatever reason, looked the other way, despite numerous allegations and “red flags,” some received as early as 1992. And since 1999, rival investment manager Harry Markopolos had sent the agency detailed analysis of why he though Madoff consistent postive returns were mathematically impossible without running a Ponzi scheme or insider trading. In a 2005 submission he made to the SEC that was recently made public by the Wall Street Journal, Markopolos charged that it was “highly likely” that “Madoff Securities is the world’s largest Ponzi scheme.” [...] […] While there is no evidence of wrongdoing with regard to Madoff by either Levitt or Swanson, SEC officials, for whatever reason, looked the other way, despite numerous allegations and “red flags,” some received as early as 1992. And since 1999, rival investment manager Harry Markopolos had sent the agency detailed analysis of why he though Madoff consistent postive returns were mathematically impossible without running a Ponzi scheme or insider trading. In a 2005 submission he made to the SEC that was recently made public by the Wall Street Journal, Markopolos charged that it was “highly likely” that “Madoff Securities is the world’s largest Ponzi scheme.” […]

]]> by: Matt Rafat http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36177 Fri, 26 Dec 2008 00:18:45 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36177 Babak, thank you for pointing out that these investors failed to perform due diligence. More on <a href="http://willworkforjustice.blogspot.com/2008/12/madoff-and-sipc.html">this after the jump</a> I hope the blogging community won't let Madoff's investors get a taxpayer bailout. Babak, thank you for pointing out that these investors failed to perform due diligence. More on this after the jump

I hope the blogging community won’t let Madoff’s investors get a taxpayer bailout.

]]> by: Babak http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36068 Thu, 18 Dec 2008 19:18:31 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36068 Russ, your challenge is a non sequitur because you are confusing a specific investment fund with the economy and 9/11. The red flags were there as you can see above - all of those things are extremely out of the ordinary and should have given anyone pause. btw, there were <a href="http://www.thesmokinggun.com/archive/0409041pdb1.html" rel="nofollow" rel="nofollow">warnings</a> of 9/11 Bush just <a href="http://www.washingtonpost.com/ac2/wp-dyn/A2285-2004Apr10?language=printer" rel="nofollow" rel="nofollow">ignored them</a> Russ, your challenge is a non sequitur because you are confusing a specific investment fund with the economy and 9/11. The red flags were there as you can see above - all of those things are extremely out of the ordinary and should have given anyone pause.
btw, there were warnings of 9/11 Bush just ignored them

]]> by: Russ Abbott http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36065 Thu, 18 Dec 2008 17:26:04 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36065 What do you think would have been the response before 9/11 to the suggestion that everyone who boards an airplane be required to have their belongings inspected, including removing their shoes and possibly being patted down by guards? Who would have agreed to the lines that would cause? Who would agree to pay for the inspectors and the inspection machinery? Who would have agreed to set aside the space in airport terminals to do the inspection? Who would have agreed to require that airports divide themselves into sanitized and unsanitized areas and control passage from one to the other. Before an event, it's very difficult to imagine what the world will look like after the event. What do you think would have been the response before 9/11 to the suggestion that everyone who boards an airplane be required to have their belongings inspected, including removing their shoes and possibly being patted down by guards? Who would have agreed to the lines that would cause? Who would agree to pay for the inspectors and the inspection machinery? Who would have agreed to set aside the space in airport terminals to do the inspection? Who would have agreed to require that airports divide themselves into sanitized and unsanitized areas and control passage from one to the other. Before an event, it’s very difficult to imagine what the world will look like after the event.

]]> by: Russ Abbott http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36064 Thu, 18 Dec 2008 17:20:44 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36064 I'll repeat my challenge. What are the red flags in the economy that we are ignoring now, and what should we do about them? Now that I think about it, 9/11 had a similar collection of red flags that were not followed up. It's certainly useful to learn lessons from past mistakes. Once we see how a particular pattern of red flags may lead to a potential disaster, we can be on the lookout for that pattern in the future. But I'm still not convinced that it's as easy as suggested to see red flag patterns that we had not previously experienced and respond to them before they turn into disasters. So again, here's my challenge to anyone who thinks it was stupidity or laziness that produced the Madoff affair. What are the current red flag patterns that we are not seeing, and what should we do about them? I’ll repeat my challenge. What are the red flags in the economy that we are ignoring now, and what should we do about them?

Now that I think about it, 9/11 had a similar collection of red flags that were not followed up.

It’s certainly useful to learn lessons from past mistakes. Once we see how a particular pattern of red flags may lead to a potential disaster, we can be on the lookout for that pattern in the future. But I’m still not convinced that it’s as easy as suggested to see red flag patterns that we had not previously experienced and respond to them before they turn into disasters.

So again, here’s my challenge to anyone who thinks it was stupidity or laziness that produced the Madoff affair. What are the current red flag patterns that we are not seeing, and what should we do about them?

]]> by: aboutoretire http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36053 Thu, 18 Dec 2008 05:19:40 +0000 http://www.tradersnarrative.com/the-madoff-red-flags-lets-count-them-2154.html#comment-36053 Although I have empathy for those investors who lost their wealth, it is not hard to conclude that they were very lax or even lazy in their deliberations when they choose to join the Madoff club. Futhermore all eyes are now looking to the SEC for a possible scape goat. That is passing onto them powers that we are not prepared to give up. Do we have to have a policeman to hold our hand everytime we cross the street ? We are all consenting adults and have to take responsiblity for our decisions however silly and reckless they may apprer in hindsight !! Although I have empathy for those investors who lost their wealth, it is not hard to conclude that they were very lax or even lazy in their deliberations when they choose to join the Madoff club. Futhermore all eyes are now looking to the SEC for a possible scape goat. That is passing onto them powers that we are not prepared to give up. Do we have to have a policeman to hold our hand everytime we cross the street ? We are all consenting adults and have to take responsiblity for our decisions however silly and reckless they may apprer in hindsight !!

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