To: pheilman_ who wrote (212481 ) 7/25/2009 2:22:21 PM From: pheilman_ Respond to of 306849 Or to make it closely relevant: who knew? Madoff claims; when he created the largest private Ponzi scheme ever, only he knew the reality. Everyone else, the programmers, his feed investors, the MFing SEC, the auditors, his sons, and most certainly his wife, had no idea what was really behind those incredibly good returns. They all went along cause the money was rolling in. And only the Boston investigator was screaming 2+2=4. And no-one listened. So who knew it was fraud and who thought they were in a legitimate investment? Greenspan claims it is impossible to see bubbles, while he blew the housing bubble with excessively cheap money, after blowing the internet bubble with excessively cheap money and loose margin requirements. Only this board knew 2+2=4, and no-one listened. The housing prices were rising faster than static wages, and that was unsustainable. Meanwhile the investors were desperate for yield and hoovering up all the Moody's blessed blends of crap loans. Creating more demand for product. And ever more speculative value got added to the house values. And the realtors, the mortgage brokers, the bankers, the ratings agencies, the regulators, the Fed, and the media all thought and stated that 2+2=5. Cause the money was rolling in. Why work, just flip houses. 50k every 2 months. Can't beat that with the sweat off your brow and everyone was there to help. And take their little piece. Or big, in the case of the IBs. Again, who knew it was fraud and who thought it was a legitimate investment? Did anyone know it was fraud? I mean the Orange County mortgage broker falsifying applications seems pretty clearcut, but, Moody's rating AAA for pay, did they know? The realtor helping move the merchandise in Phoenix? Or Stockton? So, Madoff scheme returning 12% a year like clockwork was understood by the investigator and even the regulators didn't listen. The housing scheme with 15% appreciation per year, was understood here and certainly no-one listened when we warned about buying houses that were overpriced. No man will hear what threatens his livelihood. More similarities, we knew both schemes were sketchy but couldn't state the exact nature of the fraud until after the innards were exposed.