The stench of the Bernie Madoff scandal has hit this country hard and heavy, with no indication of letting up. Now the confirmation, which many suspected is that Madoff never purchased stocks for his investors. In other words, many investors monthly statements were made up, fiction, a fairy tale. That is another dose of alcohol on running puss that just won't stop.
Investors wiped out by the Bernard Madoff scandal got more bad news on Friday: Investigators have confirmed suspicions that the monthly statements showing the disgraced financier was making stock trades for them were pure fiction.
"There wasn't any stock bought or sold," said the attorney, David Sheehan. "It was all just made up. ... You got somebody else's money."
Which brings the real question to the front, "Why invest on Wall Street?" Really, why? Many folks did not know Madoff, personally, and many invested through brokerage companies which were suppose to investigate securities prior to investing. What happened here? Well, it is the good old "rich boys network" that happened. Since, Madoff was known in this community, many stood by him and vouched for his wonderful returns, while not lifting a finger to do the grunt work of really seeing if he can bring the returns back he claimed.
In the meantime, folks, corporations, charities have filed or will file bankruptcy due to the unconscionable Bernie Madoff.
"There's a lot of frustration and fear because it doesn't feel like anyone is doing enough to help the individual investor," Bennett Goldworth said afterward.
The 52-year-old Goldworth said he had lost "several million," forcing him to put his Florida home up for sale and move in with his father in Manhattan.
One investor complained about both Madoff and the federal Securities and Exchange Commission, which has been harshly criticized for failing to detect the Ponzi scheme despite red flags raised to agency staff by outsiders over the course of a decade.
Raymond Spungin, 77, of Staten Island told Picard he had checked with the SEC before investing with Madoff in the early 1990s.
"They said Madoff was the greatest," he said. "We're the victims not only of Madoff but of the incompetence of the SEC." He and his wife believed they had $1.8 million in two accounts.
My thing is this, Wall Street and all these investment firms are a big ponzi scheme. These firms have made the public believe in their decisions, ethics with your money but trusting or guaranteeing nothing in return.
Right now, cash is king. And many are going to the old school practice, of going to the mattresses. The banks are not trustworthy or solvent, investment firms have taken a nose dive, the only capital if you have it is cash and why give it to all these jokers who have made very poor decisions to put this country where it is at today.
And Madoff? He is lucky, he is not swimming with the fishes. for real.