It seems you have JavaScript disabled.

Ummm.. Yeah... I'm going to have to ask you to turn Javascript back on... Yeah... Thanks.

Weekend Reading: Will US Government Bailout Madoff? at Trader’s Narrative

What a week! These are certainly interesting times we are living through. A bit too interesting for my taste. But we can’t do much about that.

Curious what massive redemption requests can do for a Ponzi scheme - something the SEC and the FBI were unable to do for decades. Madoff had all the blinking red lights you could ask for: a one person accounting team run out of a 13′ by 18′ office, no independent custodian, 1% a month like clockwork, etc.

Here’s a quote from an article in MAR/Hedge on Madoff, explaining his firm’s uncanny profitable strategy of “split conversions”:

…the split-strike conversion strategy is designed to work best in bull markets and, Madoff points out, until recently “we’ve really been in a bull market since ‘82, so this has been a good period to do this kind of stuff.”

Darn right. In a bull market no one needs their money back. The only thing left is for the US government to propose a $50 billion bailout of Madoff’s firm. What’s a few more billion here and there among friends, right?

But we’re not in a bull market. We’ve entered into a unprecedented situation where everything is going down in tandem. Including gold, the supposedly “safe haven”. Well, to be accurate, not everything has gone down.

To find out the only thing that has gone up and to find other interesting links and stories, read on at :

  • Federal Reserve refuses disclosure request for $2 trillion
  • which solitary asset class increased in value?
  • Swiss central bank goes to 0.5%
  • Madoff stuns Wall St. with biggest fraud
  • why investors may have known and invested anyway with Madoff
  • DojiSpace - a new free online scanning tool
  • stocks with more cash than equity value - free future earnings

weekend reading madoff bailout

Inside Wall Street’s Madoff Scandal

Enjoyed this? Don't miss the next one, grab the feed  or 

                               subscribe through email:  

3 Responses to “Weekend Reading: Will US Government Bailout Madoff?”  

  1. 1 Security

    Is Wall Street Just One Big Ponzi Scheme ?

    Madoff told his employees that “It’s all just one big lie”.
    It’s amazing that the former chairman of the Nasdaq Stock Market
    was arrested and charged with one of the largest fraud schemes
    in Wall Street history.

    It was a giant $50 Billion Ponzi scheme!

    So Where is the Money?

    But didn’t the SEC, wonder why this fund wasn’t audited by a known firm?

    You can prevent frauds and scams
    just making some background research in his public records.
    That’s why I recommend to verify the people before doing any business.

    Before any deal, just check at this free information service

    [SPAM removed]
    and don’tlose your money.

    Hope that this helps someone!

  2. 2 Bernie

    gimme a break! as if a background check would have helped + thanks for your spammy link btw

  3. 3 Babak

    I was half joking when I wrote this headline. Why half? Believe it or not, the Hedge fund trade association the Alternative Investment Management Association (AIMA) is now calling for help in cleaning up Madoff’s ponzi scheme.

Leave a Reply