Bernie Madoff pled guilty in federal court last week to all counts against him. Bernie’s legacy will be that the Ponzi scheme should now be called the Madoff scheme. Ponzi only wished he could have pulled of what Madoff pulled off.
Madoff did a very bad thing and he should be held 100 percent accountable for his actions and misdeeds. He probably has accomplices who will be found out and will be finding their way from penthouses into big houses as well. And so they should.
But…BUT…I think there’s plenty of other blame and responsibility to go around.
Like the SEC. They should have been paying closer attention. Madoff’s portfolio “made” big money, steadily, year after year. It didn’t seem to be following the same ups and downs that other funds were experiencing. This should have put a blip on the SECs radar.
And the investors need to admit that they are complicit to a certain degree as well. Madoff’s fund was too good to be true. You had to have a lot of money to even qualify to buy into it. It was a status symbol to be able to get into his fund. And it guaranteed double digit annual returns. One has to look just a little bit askancely at that sort of promise. Buyer beware, right?
Plenty of greed here to go around.