So they thought Hitler was a GENIUS, until he hit the brickwall…
Who the new geniuses for 2009? Any guesses?

While it is true investors will be able to fill a claim with the SEC, under the fraud protection fund. It is rather unrealistic to believe that anyone would come out with more than a couple of pennies on the dollar.

I understand that the total amount available in the fund to be around $1.5 billion , a small fraction of the reported total of $50 billion stolen. And the Madoff investors would only be entitled to a small portion of that amount.

So it’s hard to imagine anyone being made whole in the process. Even the “lucky” few who withdrew they money before the collapse, won’t get to keep they’re money. The Federal Bankruptcy Court will recapture those dollars, and disperse them to the other victims proportionally.

The Madoff affair clearly exposed the bullshit the working class (especially so-called “professionals”) were sold when they forfeited unions, defined benefits, pensions, etc for ESOP’s and 401-K’s. The market was rigged and Madoff, as Nasdaq chairman, clearly demonstrates the fool errand playing the game of Capitalists.

“What Ponzi sold was hope, pandering to peoples’ unrealistic desire to believe that a new way to make easy gains had been discovered, with no visible upper limit as to how long gains can persist in excess of the economy’s own rate of growth.”

Kelley indeed seems to have an unrealistic admiration for Madoff, folk hero, my eye. The way through this crisis, is for ordinary people to maintain scepticism and vigilance, the buggers will screw us all over again, if we aren’t watchful, collectively we must not allow the bastards to get away with it.

“I have acted as a professional consultant to major EC and US financial institutions on corporate and institutional credit risk and the idea that anyone in HSBC or Santander could authorise large investment without the internal checks and controls being employed is almost impossible. To try and believe that EVERY institution that invested in Madoff circumvented their internal control procedures IS impossible.

Why is this important? Simple. If someone approaches the HSBC credit risk team, for instance, with a view to making a loan or investing a sum as large as £600m to what is ultimately a single institution (therefore a single counterparty credit exposure) a significant number hoops would have to be jumped through. Firstly there is the credit officer competence limit, which is the maximum amount that a single credit officer may be allowed to authorise. More than his/her limit must be referred up the credit approval food chain. In an institution like HSBC or Santander etc, £600bn or US$1bn will have been referred to the very top of the food chain, the banks’ credit committees at the board level. This is an enormous sum and no lacky is going to be able to approve this by themselves, ever.

… Any company that I have ever worked for would have known internally that such business was being done, because they are all involved…. It is not possible to hide things like this internally for very long, months at the most; 20+ years, NEVER.

So why plead guilty? The answer is simple. Look on the net and you will see that because this case is being labelled a fraud, it would appear that investors are going to be able to claim their investment back under the US government’s financial fraud protection scheme. A judge has already given his approval in principle for compensation, without any evidence having been presented and financial fraud being demonstrated in a court of law. And it would appear that there will never be such a demonstration in a court of law. Why? It would appear that all the funds financial records are mostly “missing” (rather like Dov Zakheim’s US$1.4tn) and those few records that do survive are in a terrible mess.

However, since the guy has pleaded guilty we do not need to demonstrate the fraud, because he says he is guilty.

And look further on the net and you will see that these “victims” have also been told by the US tax authorities that they will probably also be entitled to claim back some taxes on these defrauded sums.

Rather than saying this hedge fund has gone bust, due to its choice of investment assets and investment methologies, a scenario which is highly probable in the current financial paradigm, since all the professionals are predicting that at least 30% of all hedge funds are about to fail, more than 700 of them, the CEO chooses to fess up to fraud. IF THE CEO ADMIST THE FUND HAS GONE BUST, THEN ALL THOSE WEALTHY MEMBERS OF THE JEWISH COMMUNITY GET NOTHING, BUT IF THE CEO ADMIT TO FRAUD THEY GET THE MONEY BACK AS COMPENSATION FROM THE US TAXPAYER, just as they are also drawing money back from the tax payers with the other hand.”

http://www.globalresearch.ca/index.php?context=viewArticle&code=20081224&articleId=11488