The big scandal of millions of dollars in what was basically a giant ponzi scheme has hit hard:
According to a criminal complaint filed on Thursday and cited by the Journal, Madoff “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of approximately billions of dollars.”
Clayton Cramer explains how this effects his own investments:
I’ve always been a bit nervous about having “investment advisors” helping me manage my wealth–and it is because of scandals like this. I don’t do as well as I might with someone competent managing it–but I don’t have sleepless nights wondering if my advisor(sic) is stealing my wealth, and giving it to the Democratic National Committee.
However at least one person is using this to his advantage:
Long Island Booze Baron Martin Silver is riding to the rescue to buy the New York Mets, whom he’s sure are broke, so that they “don’t fall into the wrong hands.” Like, with someone who doesn’t taunt people with poultry?
Despite Fred Wilpon’s claims to the contrary, Silver, owner of Syosset-based Star Industries, is sure that the Mets are nearly bankrupt from Wilpon being one of the victims in Bernie Madoff’s $50 billion Ponzi scheme. Silver is putting together a team of partners with the intention of offering $600 million to $700 million for the team. Forbes magazine has put the value of the Mets at $824 million, says the New York Daily News.
David Pinto understands how buy low works.
This whole scandal seems to be basically a Nigerian e-mail scam for the very rich.
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