http://www.cnn.com/2008/US/12/11/madoff.arrest/index.html This jackoff managed to lose more money then the entire auto industry needs for a bailout. The fact that this is possible baffles my mind. How can someone gain so many peoples trust and be so successful at this for so long. Gotta love the quote at the end though, “Ted Weisberg, president of Seaport Securities, said that Madoff “was an innovator” who, for years, offered investors a guaranteed return and that he continued to attract investors in that way.”
so the clients lost $50B and now he doesn’t have it either (if he ever had it)… so $50B is completely gone??.. strange, but captivating story.
I’m not one bit surprised
The biggest Ponzi scheme is Wall Street my friend. DOW tanks hard tomorrow and I will make a killing on my SKF shares again. Sorry for all the suckers who played right into the hands of hedge funds by thinking we reached a bottom. Enjoy the naked shorting tomorrow.
I’m with you on that one louisvillegrad.
louisvillegrad Wrote: ------------------------------------------------------- > The biggest Ponzi scheme is Wall Street my friend. > DOW tanks hard tomorrow and I will make a killing > on my SKF shares again. Sorry for all the suckers > who played right into the hands of hedge funds by > thinking we reached a bottom. Enjoy the naked > shorting tomorrow. I will give you a lot of credit Louisville, you have been right on about shorting financials heavily for months. I bought DEC 90 Calls on SRS at yesterday’s close. SRS closed up 25% today and I made some bank. I wish I hadn’t sold though because tomorrow SRS has a good chance of of topping 130. I wouldn’t be surprised to see SKF above 160 tomorrow either. I used to use the 180 range on SKF as an indicator for a breakout in the financials. It proved to work 3 or 4 times before it finally ran to 250. Tomorrow’s market action should be fairly interesting.
Why did you sell? These hedge funds lure suckers into these rallies and will now short heavily. Look at the jump in trading volume once the bears step in. The downward movements are usually in the 500-600 range.
The 200% profit wasn’t hard to walk away from. The calls only had another 6 days until expiration so I felt inclined to dump them. What are your thoughts on Goldman’s earnings next week?
Hmmm… if I own a hedge fund, how do I lure suckers into a false rally so I can short more?
I think Goldman’s share price will have fallen down pretty low by the time their earnings come out. I am expecting a slight rebound on earnings day…if the pps is around 50. If it hasnt reached 50 I expect a drop. My gut feeling tells me it willl hit another 52 wk low…we shall see. I am very bearish at the current price.
bchadwick Wrote: ------------------------------------------------------- > Hmmm… if I own a hedge fund, how do I lure > suckers into a false rally so I can short more? Yes I am curious too louisvillegrad, please let me into this dark art, then maybe I can start my own hedge fund making real money, instead of being sucker punched in the stock market.
I KNU IT WUZ DEM HEDDGE FUNS!
TheAliMan Wrote: ------------------------------------------------------- > I’m not one bit surprised Why are you not one bit suprised? What do you know that the rest of the world didnt - since 1960? Madoff founded the firm in 1960 and has been a prominent member of the securities industry throughout his career. Madoff served as vice chairman of the NASD, a member of its board of governors, and chairman of its New York region. He was also a member of NASDAQ Stock Market’s board of governors and its executive committee and served as chairman of its trading committee. http://www.bloomberg.com/apps/news?pid=20601087&sid=aYzclQY1HkVE&refer=home
louisvillegrad Wrote: ------------------------------------------------------- > The biggest Ponzi scheme is Wall Street my friend. > DOW tanks hard tomorrow and I will make a killing > on my SKF shares again. Sorry for all the suckers > who played right into the hands of hedge funds by > thinking we reached a bottom. Enjoy the naked > shorting tomorrow. How do you know what hedge funds are thinking? Do you talk to any? I do. Lots. I disagree with your comment.
Chuckrox8 Wrote: ------------------------------------------------------- > I will give you a lot of credit Louisville, you > have been right on about shorting financials > heavily for months. I bought DEC 90 Calls on SRS > at yesterday’s close. SRS closed up 25% today and > I made some bank. I wish I hadn’t sold though > because tomorrow SRS has a good chance of of > topping 130. I wouldn’t be surprised to see SKF > above 160 tomorrow either. I used to use the 180 > range on SKF as an indicator for a breakout in the > financials. It proved to work 3 or 4 times before > it finally ran to 250. Tomorrow’s market action > should be fairly interesting. Shorting financials was a very popular trade at the start of the year (along with long commodities). Google John Paulson and you will find someone who played this trade since sometime mid last year. It’s not new thinking. This analysis was done a long time ago before it trickled down to the rest of us.
nodes Wrote: ------------------------------------------------------- > I wonder if track record for Fairfield sentry was > valid since inception… Appears that the fraud began in the last few years - I heard circa 2005. For all the funds.
There’s a great book called “Ponzi’s Scheme” which is story behind Charles Ponzi and how he started his fraudulent investment club ironically called “The Securities Exchange Company”-- before he was exposed Mr. Ponzi was the genius HF manager of his day. It’s really a great story, which i would suggest everyone involved with markets and investments should read. After reading you see how easily someone could fall into this situation even if you start out with good intentions. I would speculate that this has happened many times over the years, although the money managers were able to unwind and get out without being exposed.
“If people really knew how Wall Street operates and what it’s all about, they would rush to Washington and demand its immediate closure”. Quoting myself.
bchadwick Wrote: ------------------------------------------------------- > Hmmm… if I own a hedge fund, how do I lure > suckers into a false rally so I can short more? You don’t. hedge funds are not at all concerned about people like louisville. It would change his world view to sit in one for a day.
Interesting. In my job, I peripherally came across an investment statement from Madoff’s firm from 2007. In the account of this particular investor group, the funds were all tied up in short-term T-bills that were rolling over every week or so. And yet when I spoke with the head of the group (i.e. the dude who is absolutely freaking out right now) near the end of last year, he said they knew the group’s return in 2007 would end up between 10% and 11%. I thought that was curious, considering the investment strategy and fees, but our client was exiting and I certainly didn’t have a dime in it. Good timing, huh.