Madoff and the Art of the Scam
20th December 2008
Trust: Get everyone to trust you. It takes time but with patience it can be done.
Secrecy: Don’t tell anyone the secret formula. Keep ‘um guessing.
Exclusivity: Troll the ultra-wealth circles and make it hard to join. High-net worths love hard to attain perks, see black-card.
How can so many people be duped?
Take the entire Madoff affair and replace it with 4 letters: T A R P.
Scam the people and keep selling positive returns. Hilariously funny that Barron’s is out with its 2009 prediction of an 18% return. If they had said an 18% decline would it cause a stampede out of stocks? The deleveraging process is in full swing. If you are going to invest, only use cash-secured puts. That way, when stocks fall (they will), you will get in 10%-20% lower.
BA
