Thursday, January 1, 2009

Madoff

Every time you hear of a hard-working person's life savings being wiped out, you can blame scumbags like Bernard Madoff pictured above. People like Madoff make life disproportionately difficult for the less fortunate. Back in the day, if you stole another man's horse, you were shot on the spot. Today, in the U.S., you can be put behind bars for years for stealing small amounts of money, but the penalty for stealing billions is almost nonexistant.
It is our opinion that if Madoff repaid every penny he stole from the system and spent the remainder of his life in solitary confinement, this would not be nearly enough to repay society for the damage he has caused. Economic systems rely entirely on trust. Without trust, a dollar is a worthless piece of paper. It's only because you trust that it has value that you're willing to accept it in return for your work. People like Madoff destroy this trust, and destabilize the economy and our nation's security in the process. In Madoff's case, this destruction was in the amount of $50 billion. That's nearly 10% of the government's $700B bailout package. The amount of destruction Madoff has caused to the public's trust in our financial system is unfathomable. It would only take 14 people like Madoff to reverse the entire benefit of the $700B bailout package, costing each American $5,000 in additional taxes this year.
Madoff stole $357 from each hard-working, tax-paying American, and for this he is confined to his $7 million Manhattan home (that we're now paying for), with the right to leave at any time with permission. Simply unthinkable. Just unthinkable. We reward these people. What the hell has happened to this country?

7 comments:

Anonymous said...

HI Snot,

I was appalled when I heard the news that he is spending his time at his 7 million dollar home after what he has done to scores of rich and not so rich investors. Would this ever happen to a common man on the street ? Its very difficult to comprehend !

If you look back at all the events that have happened since Bear Stearns fiasco, I feel that the treasury department under Hank Paulson is one of the worst that USA has ever seen. The decisions they have taken on the fly without analysing the consequences scares me. The latest being the GMAC investment made and no one really know whether GMAC met the requirements that were insisted when they wanted to become a bank holding company.

I used to have very high regards for Goldman Sachs and Hank Paulson when he was the CEO. All tha has just disappeared by their actions over the past few months. I am hoping Tim Geithner can restore investor confidence in the Treasury.

AK.

devblog said...

Happy New Year Snot and all! The sooner Madoff is served justice the better. He's even worse than Nick Leeson (Barings), Edward Cahill (Barclays), Jerome Kerviel (Socgen), John Rusnak (currencies), Yasuo Hamanaka(Sumitomo), Peter Young (City bank Morgan Grenfell), rogues one and all! Let your justifiable anger not cloud your investment analysis these coming months.

Anonymous said...

If he is in China, He already been EXECUTED! NO question ask by court!

Anonymous said...

Ya, that's something to be proud of Anon.

Snotwheel said...

Hopefully Geithner can help restore credibility... maybe for the next generation, as ours has already seen too much.
We dumped SMN last yesterday. What a poor hedge that turned out to be! Fortunately, it was a 4% position going against a 30% long position.
Anyone notice relative weakness in AAPL? The other techs are participating in the recent rally, moving back to their averages, but AAPL is not rallying. Instead, it looks like it's just sitting on the support of a large descending triangle. When this rally finally reverses, AAPL looks like the most likely big tech name to break support and head lower. There's just no buying interest evident in that chart.

Anonymous said...

Icon,

I am showing dow and LDK breaking out. Can you confirm this?

j

Snotwheel said...

Neither the Dow nor LDK has taken out resistance yet. For the Dow, it's 9000 and for LDK its 15.5.
You'd need a decisive break of either to call it a break out.