Mr. Madoff, as we already know, might have ran a criminal enterprise. I don't believe, though, that he started his fund in the 60's having a Ponzi scheme in mind. It's just when the things started to get bad, he wanted to keep up the play.
What is interesting, though, that people were lining up to give him their money without questioning his investment strategy. It was the "in" thing, only for well-connected. On the other side, however, Mr. Madoff was almost as Alan Greenspan as far as his reputation ( before the collapse, of course) and credentials were concerned-who could possibly question him? This is what we called "eminence-based practice"!
Yet another confirmation of the fact that few financial advisers keep their clients' interest at heart. The issue is that of financial education. Yet again!
I wonder how many doctors were among Mr. Madoff's unfortunate investors....
Subscribe to:
Post Comments (Atom)
3 comments:
Docblogger, Your statement, "...few financial advisers keep their clients' interest at heart." rings so true to me. As a previous neurologist who retired and worked in the financial industry for seven years, your conclusion matches my observations and experience. This led to my second career providing investment information to MD's that is unbiased since I have no association with any investment firm. As to Madoff, please see my own blog regarding same: http://mymoneymd.com/blog/. Shirley M. Mueller, MyMoneyMD.com
Dear Shirley,
It's heartwarming to know that doctors like you take the financial matters in their own hands to try and secure their own financial future despite the best efforts of some representatives of the financial industry.
The more interesting question about the whole empire of financial advisors now is how many of Mr. Madoff's clones are out there and whether one's financial advisor is one of them.
Even more important to be self-reliant (after all, isn't the self-reliance got us where we are in our profession?)
Thank you for your comment.
I agree with that Mr Madoff did not start out with the sole of intention of running a ponzi scheme.
My worry whenever I come around stories about him is the milliions of people and organizations that lost their money to his game
Post a Comment