Madoff Type Stock Scams Exposed!
It seems true to say, Barnard Madoff is the new Charles Ponzi. Investors put much faith in Madoff and considering the current state of things in the fanancial markets, it is a real shame that this man could betray so many good investors! At this point Madoff Type Stock Scams have really impacted countless people around the globe.
What a insane lost of some 50 Billion Dollars! This from the same man who was the Chairman of the NASDAQ and a financier second none. Well he just admitted to mastering this Ponzi Stock Scam.
What a horrible financial lost this has been to Wallstreet and Mainstreet! So maybe in the future we will all be better investors. Because this has to be the mother of all text book lessons to learn from what not to do! We must try to completely avoid this type of scam in our remaining years as stock investors.
The infamous Charles Ponzi of Boston developed the ultimate scam “The Ponzi Scheme” and in the 1920’s cost investors million of dollars! Rather than making profitable investments with the money of new and unsuspecting investors, a ponzi operator was giving away the money of new investors to older investors to make them happy.
Barnard Madoff’s Empire like Charles Ponzi’s Empire before him had a destiny of failure and an a appointment with the Big House. But at this point there is much to learn from these two scam artist, and we better take the time to learn because if we don’t, guys like these could make all stock investors pennyless!
Diversification is the the one and only answer to these criminals because these Madoff Type Stock Scams only work with ignorant stock investors that do not diversify. It would seem to be a no-brainer for investors but the rule should be Don’t Put Every Single Dollar of Your Assets in One Investment Just Because It Looks Really, Really Good! You may end up being very very sorry you did!
Amazing Offers are signs of a criminal stock scam. Mr. Madoff guaranteed big returns on his worthless investments with low risk to no risk. Bells should have been ringing in investors heads but they were not? This is not to say solid investments do not exist, it just means that these kinds of fantastical guarantees that Madoff was offering were truly laughably.
We pay taxes to support services to help us and some tax money goes to The SEC. But in The Madoff Affair The SEC did next to nothing? We all know YOU ARE TAKING A RISK WHEN YOU INVEST and this risk should be under the umbrella of The SEC, but it certainly was not in The Madoff Affair. Madoff scamed large banks savvy stock brokers, people with MBA’s and more, so if you were just a Madoff average investor I would not feel too bad because Mr. Madoff got the best of them. Of course if you were a Madoff Victim there is a great website you can go to for help: bernardmadoffvictims.com
We all get taken for a ride sometimes. However, you can keep this from happening by making smarter financial decisions. Hedge Funds have a lot of risks associated with them. It is almost always better for individual investors to put their money in low-cost Mutual Funds, Bank CD’s or Gold. It is less risky and easier to keep public information track of when it goes up or down. Of course in 2009 you may just want to leave your money in the bank! (c) 2009 William R. Wiedow Ph.D.