MADOFF, ... or should that be OFFMAD, or just plain MAD ?!!
How can any individual believe that a Ponzi-type scheme can survive over the longer term ?
It may seem easy at the start, when it is still growing and the funds coming in can be paid to existing clients. But, in general, it is doomed over the longer term when the client base, that has to be satisfied with "good returns", becomes so large that it's difficult, if not impossible, to continue to "feed them".
Here we have another potential financial catastrophe which could possibly have been avoided had there been some degree of adequate Regulatory intervention.
It really is unbelievable to think that an "Investment" scheme, with Billions of dollars involved, could carry on in existence without proper financial due diligence taking place on a regular basis.
Where was the adequate "paper work" that could be scrutinized ? Why were apparently smart, wealthy, influential people prepared to put so much faith in a scheme with very little "supporting evidence" as to where their money was being invested ?
In a way one could conclude that they have only themselves, and possibly their "greed", to blame.
After all why was Madoff always always so reluctant to discuss aspects of his investments ? That alone should have raised a few concerns and should have precipitated some enquiry or investigation by an individual or his 'expert' advisor. |
