One has to wonder if this admission of failure is a ploy to divert away more in depth investigation which may turn up money changing hands to look the other way.

The SEC had a duty to act and willfully failed to do anything. This makes them legally culpable for the outcome. The SEC was repeatedly warned about irregularities in Madoff’s operation and did nothing about it. The good old boy network protected Madoff and looked the other way. Everyone involved in the supposed investigations of Madoff’s operation should be held liable for their criminal incompetence and put in prison. If it can be proven that they in any way benefited financially by looking the other way, they should have all of their assets seized to go towards repaying the investors that lost money.

While I can understand how some of the less financially savy people who were hurt by Madoff’s actions could be deceived, I do not understand how so many supposed ‘professional’ money people could be snowed. When someone is repeatedly showing returns that are outsized compared with the rest of the market, it should have raised flags with these ‘professionals’. I think a lot of these people did not really want to know how Madoff was doing it because of their own greed. They feared that if was uncovered that Madoff was doing something illegal, they would lose their huge returns. I think the SEC needs to take a serious look at anyone who was invested with Madoff who got out before things unraveled. These people may well have known what was going on and been complicit with Madoff.

I would say that their had to be a number of people both within the SEC and the professional money management community who knew what Madoff was doing and looked the other way. These people who were complicit in Madoff’s action need to be held responsible and lose any financial gains they received from their actions or deliberate inaction.

Our government is involves in what some has called this ponzi scheme going on in wall st. They have developed the the 401K, made defined benefit retirements disappear, and have tried to pool all your retirements into future mutual funds, where they don’t have rules, don’t enforce the one they have, and let wall st redefine the rules they don’t like. All to be able to gain access to your future funds. There is absolutely mo rule that would protect you from having it dissappear before your eyes. If you were actively managing your own account you would have had stop losses in place to not loose more than a certain amount of your investments, but if mutual funds all had that rule they would all start pulling money from stocks and eventually collapse the market. So you all get to buy and hold into the ground, while the hedge funds get to walk with there gains, the banks get the government to pick up the pieces of there irresponsible deals with hedge funds. The hedge funds and the sweet deals they made at the banks with there buddies was the cause of all the pain right now. They shorted companies into the ground, literally, and we say nothing. No one goes to jail because they have redefined rules to exclude themselves with a government who helps them.

It would simply be your own fault now if you kept your future invested in any of these tools you have no control over. Remember the words of the president”fool me once, fonem bu da ple” oh what ever, I like ” a good captain only makes the same mistake once” Cap Kirk.

Related Posts:

• Allow me to remind us all of Wisdom from a Patriot……
• “Japan’s jobless rate rises to the highest level in six years, while consumer prices fall at a record level, but investors largely ignore the news, sending stocks to a new 2009 high.”
• Some quick P/E calculations for Bank of America(BAC)
• The VIX Index: Buy When High, Go When Low
• Bernard Madoff created NASDAQ and Ponzi Scheme

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