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What allowed the Madoff scandal to happen?
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What allowed the Madoff scandal to happen?

Why couldnt the madoff or any other ponzi scheme be prevented? What allowed these ponzi schemers like madoff to do things like that?


    

avgjoe
It was the investors who got good returns on their own investments with madoff and their word of mouth that helped this scheme work. They were unbeknown to them accomplices in this. as it has been going on for decades and would still be going on now if the banking industry hadn't collapsed and individuals quit investing.

When people quit investing there was no money to pay the investors as there were no new investors coming in. There was no way to pay dividends so the whole scheme came to light when more and more investors decided to cash in their shares with madoff


SCOTT M
Rating
Greed and stupidity. When someone offers you a return that's twice the market rate and you accept it, one of you is a fool and the other is a con man.

At least two people notified the SEC that they had serious concerns about Madoff's company. The SEC ignored their warnings and did nothing. So much for congressional oversight and regulation by congress. Those guys are dumber than dirt.

You would be very surprised to know just how unsophisticated many rich investors are.


shane_emsworth
Greed begets Greed


introyble
good old greed strikes again. people wanted to make easy money for doing almost nothing. so they let greed blind good judgment.

I see the category you posted the question in so I was wondering if you wanted a simple answer or a more academic answer. I went with the simple answer


.
Rating
Gullible uninformed people.





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