Madoff Cover | Armstrong Economics

For those who just read the news and believe everything they write, in the industry, everyone talks all the time. If Madoff was losing trading billions, everyone would know. It is one thing to have a portfolio of assets that collapses in itself in value and that will not involve trading. Such an event represents a more private issue. However, everyone suspected that something to the news would be circulating about what he had bought. There is no way the money will vanish. A likely possibility is that Bernie was aware of the darker side of Wall Street and may have facilitated it for a price.

The Bernie affair began on December 10, 2008. Lehman Brothers and Bear Stearns both collapsed and the Fed took over Fannie and Freddie before that date. The Lehman collapse shocked the world and sent real panic on Wall Street. The rumor was that Hank Paulson, a former Goldman member, had allowed those companies to collapse thus eliminating two of Goldman’s five investment banks.

That above all contributed to Madoff’s downfall, but then came the AIG bailout which was really to bail out Goldman Sachs. AIG owes tons of money to Goldman. So they bailed out an insurance company without saying legally, Goldman Sachs.

There is no doubt that Bernie had withdrawals and on any investment he had, he would have lost a fortune without a Ponzi scheme. With the money laundering practice going on in New York City, there is no doubt that the counterparty risk has collapsed. This most likely pushed Bernie over the edge. Was it really just a Ponzi scheme, or an elaborate money-laundering machine on the dark side of Wall Street?

Understand one thing. Madoff did not collapse in isolation. Conveniently and suddenly attributed his losses to a Ponzi scheme. This eliminated any further involvement. Calling something a Ponzi scheme as a matter of law means it All The deal was a scam. Therefore, this cuts off all investigations to understand what really happened. It is no longer needed because every transaction and every transaction does not need to be investigated because it was Bernie as a fraud – no one else.

As long as they called it a “Ponzi scheme,” there was no money laundering investigation.

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