And 'listed as the worst scandal that the world has ever seen in the global economy. Although this kind of hyperbolic language is at best, one can not deny that the world was badly shaken when Bernie Madoff was revealed more than a financial criminal. He was one of the most respected investors, until now, and on top of a modern financial crises of our time is presumed rock in the storm was nothing more than another man, who had been dishonest, and ended up paying for it.
Bernie Madoff was a man who was so respected that many people began to do exactly what he could get away with it for a long period of time. It stimulated many questions about the actual existence of the financial system with most of these questions are not answered particularly satisfactory.
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| Bernie Madoff Scandal |
Before the scandal :
Bernie Madoff did not begin life as an economic genius. In fact, the opposite was true. The fact is, that when he was originally born, Madoff had no idea what you are facing a life. She initially worked as a lifeguard by the installation of an irrigation lateral. It was her life until 1960. From that year came around, Madoff had already set aside $ 5,000 of savings. Current standards, that the money would be worth about $ 35,000.
The company started in 1960 with that amount of money was a trading company specialized in trading penny stocks. As the name implies, these stocks are worth peanuts compared to the big leagues. They are small start-ups or companies that have fallen and tries to bounce back. Whatever the reason for the value to be, penny stocks are actually stocks, you can get for pennies and sometimes a penny per share in the company.
Trade in these populations in normal circumstances is very risky. It is equally likely that a particular company sometimes and lose all your money will grow and justify their faith in action. With only $ 5,000 of initial capital, Madoff decided his best chance to make more profit with this for this reason decided to cut their teeth on the financial penny stock market. In this he was helped by his father-in-law, a man who was responsible for the reference to the number of Madoff first large circle of clients who could benefit.
It was during this time that Madoff Securities has developed the NASDAQ system for the distribution of appointments by the use of information technology. It was to help compete with larger companies that were already well established in the New York Stock Exchange. For this reason, Madoff always at least be able to point to the NASDAQ system as one of the main achievements in your life. That will be worth nothing to the story is another story, now that the performance is more than the shadow of the huge amount of fraud that he is responsible.
Since the 1970's to the right in 2008, Bernie Madoff was certainly responsible for part of their clients' money. However, as discussed later in this discussion, that money has not been done honestly. It was essentially a part of one of the largest Ponzi operations, if not bigger than the world has ever seen. During this time, however, no doubt felt a mixture of admiration and envy according to the specific person you spoke to.
