Madoff says losses of 50 Billion!

Quote from flytiger:

1. No thinking individual will trust any hedgefund for years. To put it another way, the cat that sat on the hot stove never again sat on a cold one. There will be no discerning a 'good' hedge fund from a bad one. They all are pelts to hang over the fireplace now.
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There are plenty of quality hedge funds run by honest people. They tend to try to stick to people they know, who are also honest.



2. This arrest is just the beginning. And with Madoff having the pedigree of resume, what in the world do you think this is going to look like from the outside?
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Madoff has been a crook his whole life. Now that he is at the end of his days, he gets charged, put on trial and may possibly get 5 years and 5 million fine? That's a joke. Let alone considering the fact that he is going to jump bail anyway.
 
Quote from Pekelo:

It can not be a clear Ponzi scheme, there had to be some kind of trading and real losses.

In a Ponzi scheme money doesn't disappear, it just gets REDISTRIBUTED, from the people coming too late to the party to the people at the top of the pyramid. The first investors (early birds in the scheme) are happy campers.

So there has to be more to the story then just a plain Ponzi explanation. He probably did have trades, they were just not winners...
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Do not be happy for investors who withdrew money. Lawyers will show that such money was handed out in much higher percentage than the actual monies available at the time of the distribution given the actual assets in the fund.

I have received distribution checks of this type - 7 years after a fraud became known, and am still waiting for the final check that the receiver will distribute 9 after the fraud came became known. This previous fraudulent fund had only 50 million, and the guy gave complete cooperation. My guess is that the courtroom door will close for the last time on the Madoff fraud, 18 to 20 years from now.
 
I'll give you some more stuff to entertain you.

Offshore funds will be unlocked, exposing the best and brightest. Those crying the liberal mantra the loudest are tax cheats, rationalizing their 'decision as not paying for Bush' war. UBS, CS, Julius Baer, Lichtenstein, Costa Rico, and my fave, Curacao, and the Duess empire.

The Sith Lord will be exposed as a consortium of MidEastern and Eastern European manipulators with an intense hatred of America.

An old name will resurface as a prime participant in this most horrible of frauds.

They will sweat these guys, and they will cry that it all go out of hand.

reporters in bed w/Hedgefunds. Naked shorts are just the tool; the setup is, rumors, inuendo, blackmail, and negative newsflow.

Many hedgefunds exposed as simply shell games, where the returns are fabricated, either by the Ponzi method, but more likely naked shorting, insider trading, payoffs, etc.

Major arrests of household names in finance and regulation. Politicians? Possilble. Not sure if they have the guts.

Exodus of most all retail investors from the markets.

major pension funds denying payments and retirements to people who earned that right.
And finally, this government crap fails, and you are I are sittin' under the overpass grilling a hotdog over a garbage pail fire.

I don't like this. Not one bit. But I learned something from my dogs. I don't shit where I eat.
 
Quote from Cdntrader:

Madoff Told Employees Business Was ‘One Big Lie,’ SEC Says
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By David Scheer

Dec. 11 (Bloomberg) -- Bernard Madoff, president of Bernard Madoff Investment Securities, told employees that his business is “all just one big lie” and “basically, a giant Ponzi scheme,” the U.S. Securities and Exchange Commission said.

In a meeting yesterday at his Manhattan apartment, Madoff, 70, told two senior employees that he was “finished” and had “absolutely nothing,” the SEC said in a civil lawsuit at federal court in Manhattan today. <b>He told the employees his business had been insolvent for years and estimated losses to be about $50 billion</b>, the regulator said.

Madoff said he planned to surrender to authorities in a week, after he distributed some of his remaining $200 million to $300 million to select employees, family and friends, the agency said. He was arrested in a related criminal case today on a single count of securities fraud.
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markets surging. looks like a non story
 
if this is by any means true, why is the market not
collapsing? it is a bloomberg report after all. madoff
has been subject to rumors of being fake for a decade.

http://www.bloomberg.com/apps/news?pid=20601110&sid=alHD.ggaCDj0

and on reuters
http://www.reuters.com/article/governmentFilingsNews/idUSN1227776020081212

it does not sound like fake news. but if it is THIS madoff,
then we are talking about a major, major collapse due
to fraud. this can easily cost the major indices another
15%. but the SP seems to ignore it. weird.
 
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