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greenjoker · 02-20-2009, 06:46 PM

If as stated by the link that Madoff didn't buy and lose money in the stock market where is the over $40 billion stashed?

Trustee: No evidence Madoff bought any stock for his clients - USATODAY.com

Gotham_Spartan · 02-20-2009, 06:59 PM

Quote:

Originally Posted by greenjoker

If as stated by the link that Madoff didn't buy and lose money in the stock market where is the over $40 billion stashed?

Trustee: No evidence Madoff bought any stock for his clients - USATODAY.com

Much of it was paid to previous investors. That's the way a Ponzi scheme works. There are a lot of Madoff investors, particularly the earlier ones, who -- although they've now lost their capital -- nonetheless made a lot of money over the years by withdrawing their earnings. If they went to make a withdrawal, Madoff paid them the money he was collecting from others; that's how he maintained the myth that he was managing investments.

But it's staggering that he managed to keep it going for so long on such a scale.

Incredulously yours,

DantonIzzo · 02-20-2009, 07:14 PM

Quote:

Originally Posted by Gotham_Spartan

Much of it was paid to previous investors. That's the way a Ponzi scheme works. There are a lot of Madoff investors, particularly the earlier ones, who -- although they've now lost their capital -- nonetheless made a lot of money over the years by withdrawing their earnings. If they went to make a withdrawal, Madoff paid them the money he was collecting from others; that's how he maintained the myth that he was managing investments.

But it's staggering that he managed to keep it going for so long on such a scale.

Incredulously yours,

That's what still baffles me. I will never begin to understand how he could keep it going for as long as he did without getting nailed.

greenjoker · 02-20-2009, 07:14 PM

Quote:

Originally Posted by Gotham_Spartan

Much of it was paid to previous investors. That's the way a Ponzi scheme works. There are a lot of Madoff investors, particularly the earlier ones, who -- although they've now lost their capital -- nonetheless made a lot of money over the years by withdrawing their earnings. If they went to make a withdrawal, Madoff paid them the money he was collecting from others; that's how he maintained the myth that he was managing investments.

But it's staggering that he managed to keep it going for so long on such a scale.

Incredulously yours,

I don't think that Madoff had too many withdrawals and when that happened he admitted his scheme. What he did pay out was 10% dividends per year on a growing number of investors over the years. I'd be surprised if he paid out over $10 billion total.

Cuchulainn · 02-20-2009, 07:14 PM

Quote:

Originally Posted by Gotham_Spartan

Much of it was paid to previous investors. That's the way a Ponzi scheme works. There are a lot of Madoff investors, particularly the earlier ones, who -- although they've now lost their capital -- nonetheless made a lot of money over the years by withdrawing their earnings. If they went to make a withdrawal, Madoff paid them the money he was collecting from others; that's how he maintained the myth that he was managing investments.

But it's staggering that he managed to keep it going for so long on such a scale.

Incredulously yours,

That's correct. And by definition Madoff had to expand his base of investors and have a positive cash flow to perpetuate the fraud.

rob · 02-20-2009, 07:31 PM

Quote:

Originally Posted by Cuchulainn

That's correct. And by definition Madoff had to expand his base of investors and have a positive cash flow to perpetuate the fraud.

The guy was working his ass off to keep it going and he deserves a big bonus.

Tree Rat · 02-20-2009, 07:58 PM

Quote:

Originally Posted by DantonIzzo

That's what still baffles me. I will never begin to understand how he could keep it going for as long as he did without getting nailed.

See Clinton & Bush for examples. Hell look at anybody in elected office in Washington.

tuff bob · 02-20-2009, 07:58 PM

Quote:

Originally Posted by DantonIzzo

That's what still baffles me. I will never begin to understand how he could keep it going for as long as he did without getting nailed.

Thank god Government Regulators finally figured it out and stopped it before it grew over $50 bil.

The Armchair Quarterback · 02-20-2009, 08:14 PM

Some dood from MA figured out Madoff was a fraud and reported him in the 90's but the SEC never took him seriously. Woops

EComCon · 02-22-2009, 08:05 PM

Stanford and Madoff have more in common than you think | Charting Stocks

Is Madoff the tip of a money laundering pyramid in Israel?
Bush SEC Holdovers Cite Executive Privilege, Refuse to Answer Questions at Madoff Hearing | Crooks and Liars

greenjoker · 02-22-2009, 08:08 PM

Quote:

Originally Posted by EComCon

Stanford and Madoff have more in common than you think | Charting Stocks

Is Madoff the tip of a money laundering pyramid in Israel?
Bush SEC Holdovers Cite Executive Privilege, Refuse to Answer Questions at Madoff Hearing | Crooks and Liars

So the financial meltdown in the U.S. is because of Jews giving money to Israel?

EComCon · 02-23-2009, 09:22 AM

YouTube - Steal $8 Billion And You Won't Get Arrested

Is Allen Stanford A CIA Asset?

GRR Spartan · 02-23-2009, 09:39 AM

Quote:

Originally Posted by The Anti - Bob

See Clinton & Bush for examples. Hell look at anybody in elected office in Washington.

Another anti-government rant on a thief post. Uncle Bernie was the ultimate con man. He schmoozed so well you were honored to give him you money. If you were a peon with just a few million you felt lucky you had a guy on the inside to get you in.

Just move if the US and everyone elected is so bad, so evil, so wrong. I don't know where that utopia for you might be but it clearly isn't the US and never will be. The US is too big, too populated and has way too much infrastructure to support that isn't possible with your desire to return to the more simple agrarian past.

AbbottHallAbsyntheDrinker · 02-23-2009, 09:52 AM

SpartyOnInChitown · 02-23-2009, 03:05 PM

The amount Madoff will be required to pay the federal government in restitution is going to be staggering. He may require his own line item in the federal budget.

greenjoker · 02-23-2009, 03:41 PM

Quote:

Originally Posted by SpartyOnInChitown

The amount Madoff will be required to pay the federal government in restitution is going to be staggering. He may require his own line item in the federal budget.

He might Key Lay the government before sentencing who might be just happy to give up with the right inducements from his family.