Wednesday, December 24, 2008

A Few Thoughts On Bernard Madoff Fraud

Can't help but think what might have led to the biggest investment fraud in all of history, the Bernard Madoff scandal. Loose SEC regulation certainly played a role along with the climate of let business self-regulate their activities. But the more I think of this, a Ponzi scheme requires a very essential element, no matter how big or small the scheme is. And that is greed on the part of the investors who think they can make a quick profit by investing with a Wall Street legend, with little questions asked. Do I feel bad for multi-millionaires and billionaires losing half or more of their assets? I seriously doubt they'll be worrying about next month's bills so the answer is no. Do I feel bad for non-profits losing everything? Maybe, but again, they elected or appointed financial directors who they feel can make them the most profit. So I think the Obama administration will change this culture of non-oversight fairly quickly within the financial industry but at the same time, I don't think any amount of reform can change the way the majority of Americans think about greed and the accumulation of wealth.

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