When I have heard about this heist and I watched a story of a family on CNN who lost everything, my first thought was, they they were either stupid, or so incredibly greedy that they forgot to play safely and acted stupid anyway. They deserved their loss. I am sorry to say it, but it is what I think about this issue.
I wrote my ideas on diversification in regards to this scam on my blog: http://hellosuckers.net/?p=102
Martin
of CO
@
Jan 03, 2009 02:00:33 AM
Diversification is not a basic rule of investing
Diversification merely reduces volatility. However, there is more to risk than mere volatility. The basic rule of investing is: Know what you are buying.
Early Retirement Extreme
of CA
@
Dec 18, 2008 16:21:51 PM
Investing with Bernie
There has been much written about the stupidity and greed of people who have invested in Madoff's fund, as we called it. This particular investment paid above average returns to me and members of my family for over 30 years. It was hard not to be caught up in the scheme. We would send back funds on a regular basis to grow our principal and get back a little more the next time a check was due, although it didn't necessarily happen. Diversification in today's market would have brought with it diminishing returns and loss of principal. You could say we were asleep at the wheel, trusting a man who my great uncle put on the stock exchange in 1960. Never in a million years would we even think this investment was tainted and ripe for eventual doom. People are saying it was an honor to be invested with Bernie and his legions... well, it was for a time but now it is the kiss of death for many who trusted this two-faced piece of garbage. May he rot in jail and hell for what he has perpetrated to innocent people and organizations.
Elliott Marshall
of FL
@
Dec 18, 2008 02:03:25 AM
DIVERSIFY? IF YOU CAN'T SEE IT, IT MAY BE GONE
From New York to Geneva, corruption is rampant and complex on Wall Street.
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.
Martin of CO @ Jan 03, 2009 02:00:33 AM
Early Retirement Extreme of CA @ Dec 18, 2008 16:21:51 PM
Elliott Marshall of FL @ Dec 18, 2008 02:03:25 AM
PacificGatePost of WA @ Dec 17, 2008 20:28:59 PM
of @ Dec 17, 2008 17:45:52 PM
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