A Ponzi scheme worth USD65 billion? Wow!
The lesson.... Y, R, S, S...
There is no yield without taking risk, and sacrificing safety and sleep.
The Madoff investors were looking for yields with safety, and Bernie Madoff gave them both. Imagine getting 10% to 12% every year for 40 years? ( The magic word...let's pay them interest!)
Greed...
Never trust a scheme that pays more than 5% without taking the risk of capital loss... remember Lehman Bonds? That pays 10% annually and yet rated AAA?
Madoff probably started the seeds of Ponzi in 1962 when the mini crash happen. The 1987 crash resulted in redemptions, and Bernie had no choice but to rob Peter to pay Paul.
The rich can also be suckered, eh? With all the private and exclusive bankers and advisors working for them....
No comments:
Post a Comment