Thursday, 18 December 2008

Don't trust your betters

A recent Steve Sailer post on the financial meltdown underlines just how corrupt and blind the whole system is. It also underlines how daft we are to trust in our ‘betters’. He shows that there’s little incentive for outsiders to point out big shots' fraud and misinformation, and such whisle blowers face a lot of potential risk.

Steve takes time out to salute Harry Markopolous, who first brought Bernie Madoff's Ponzi scheme to the Securities and Exchange Commission's awareness in 2000 and then wrote them a 19 page letter in 2005 listing 29 Red Flags.

Of course, the SEC didn't do anything substantitive about it (other than one SEC official marrying into the Madoff family). Markopolous tried to talk the SEC into taking action by warning them that if they didn't move fast, Elliot Spitzer would beat them to it. (But now we know that the Spitzer family real estate firm, like so many New York real estate businesses, had money with Madoff.)

One thing that stands out is that Markopolous wasn't alone. He was just the guy who kept complaining about it. Markopolous's 2005 letter cites numerous experts, either by name or by position, who figured out this was a fraud. But Markopolous was one of the few to do anything about it.

Lesson is - don't trust the experts ever again.

3 comments:

Anonymous said...

I bet they (Made-off's victims, disproportionately rich and Jewish) get bailed out by the Giver-ment.

We cant LOAN our entire struggling auto industry 14 billion, but we can just print money and GIVE a few millionaires and billionairs 50billion because Made-off ran a fund that anyone should have seen was a big scam.


My 401K had lost half its value in 3 years, and nobody is bailing me out.

SAVANT said...
This comment has been removed by the author.
SAVANT said...

This seems to be an almost totally Jewish thing (the Made-off deal) but again I'd make the case that Jews will be on each side of this. You'll probably find that they're leading the prosecutiuoneffort. However, I must admit I'm less convinced about this than I used to be.