The world financial crisis continues to take its toll in countries across the globe. Are you wondering what’s really going on in the market? What do you think about the Bernie Madoff scandal? It is very shocking but I can’t believe that nobody knew.

Why could Madoff fraud? What is the role of the US government?

The Madoff scandal

Madoff used a giant Ponzi scheme.His fraud may have lost $50 billion.
He took money from new investors to pay off previous investors, and he kept doing it until the new infusions couldn’t keep up with the withdrawals.

Where are the regulators?

The call for regulation assumes without grounds that government can protect investors from con men. But government regulators have never been able to make good on that promise. Just one expert noted, Madoff was conspicuously unable to attract a lot of big institutions. In fact, we hear that the Securities and Exchange Commission had been suspicious of his methods for a long time.

What is the moral of Madoff scandal?

Good question, I have no precise answer. A new regulation would eventually confirm those truths Madoff scandal a failure of current regulations, or of a failure of the regulators to enforce the regulations?
Without regulatory rigor, a full economic recovery will be postponed or even derailed, an other “Madoff scandal” is possible!

I am really pessimistic, during the last years, we have seen some financial scandal like Eron, the Black Monday in 1987. I feel that we don’t learn about it.