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Should Madoff's victims just 'get over it'?

Posted Jun 30 2009, 01:50 PM by Kim Peterson
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File photo of Bernard Madoff (© Louis Lanzano/AP)Government negligence pretty much caused the current financial crisis, writes Joe Nocera of The New York Times. Does that mean we can sue the government for our losses? No, he says.

In other words, victims of Bernie Madoff's schemes need to just get over it and stop suing the Securities and Exchange Commission for failing to uncover the fraud, Nocera writes. If the SEC were liable for anything here, then taxpayers would be the ones paying Madoff victims. "This is not 9/11," he adds.

It's a pretty tough column saying all kinds of things that Madoff's former clients don't want to hear right now. They are responsible for their own financial gullibility. When something sounds too good to be true -- like the returns Madoff promised investors -- it probably is.

Too many victims still think that someone needs to make restitution, that someone should have to make them whole, Nocera writes.

"The whole point about Ponzi schemes is that there is not enough money to make anybody whole -- they were robbed, pure and simple, and the government is not in the business of reimbursing for robberies. Not even when the cops stumble across the robbers and then mistakenly let them go."

Related reading:

SEC isn't to blame for Madoff

Madoff sentenced, but has anything changed?

Who wasn't dealing with Bernie Madoff?

Comments

 

I BELIEVE ALL THE MADOFFS' WERE INVOLVED, TAKE EVERYTHING THEY HAVE AND DISTRIBUTE THOSE ASSETTS BACK TO INVESTORS.IT'S ONLY FAIR IF THE GOVERNMENT IS GOING TO IMPLEMENT ITS' TWO YEAR CLAWBACK POLICY ON PEOPLE THAT HAD NO IDEA SOMETHING WRONG WAS GOING ON. MRS. MADOFF WILL DISTANCE HERSELF EVEN MORE FROM BIG BERNIE IF SHE'S LIVING IN A SHELTER,WHEN BERNIE SEES WHAT HES' DONE TO HIS FAMILY MAYBE THEN THOSE INVESTORS WILL HEAR WHERE THEIR MONEY WENT.

You are right!  Government negligence caused our financial crisis and the success of the Madoff scheme.  Unfortunately, legislation to regulate both situations and protect investors is in order, whether it be our bank deposits or wall street stock.  We talk about the cost of health care reform and quibble about it in Congress.  What about the outrageous cost of the bail-out that took only days to approve!!!

Yes !  his victims took a risk.   However they did not perceive that they would be ripped off.  No they shouldnt get over it.   While they will probably never get their original investment back, they should be able to get a % of what the government recovers from Madoff.   I feel certain the government investigators havent found all of Madoffs assets yet.   I dont believe the investigators are entitled to receive any thing from government funds.

"THEY" ALL ARE CROOKS. ALL SHOULD BE SENT BACK, AND NOT INTO OUR PRISON SYSYTEM WHERE WE HAVE TO SUPPORT "THEM" AGAIN

The clients of Bernie Madoff were as greedy as Bernie.  The most any investment group can "legally" expect from any legal investments group is a return of no more than 5% on investment.

Madoff was "giving his clients" over 10% return, for well over a decade.  THAT was the clearest sign the SEC first ignored and now finally has too explain to these investors.

Yes, Madoff's clients were conned by the best because he was respected, but also because Madoff was "giving" NOT earning HUGH returns.

Any Millionaire who didn't know or understand that investment fact wasn't stupid or ignorant, they were simple as greedy as Madoff.

the government is in our life to much now you make a bad investment to bad you eat it.

Socialism is now looking pretty good to these capitalists when they foolishly loose their money in high risk investment - let the public bail me out. Their inflated egos love boasting how much money they make in the stock market and how clever they are at turning huge profits, and yet their egos are too weak to admit when they loose money on foolish investment - it's always somebody else's fault. Their greed is as guilty as Madofffor their predicament. Capitalists love getting rich and trumpeting the virtues of a capitalist market when it's on the up side. They are now finding out what the down side looks like and all they can do is cry "foul!" in a game they didn't play very well by throwing caution to the wind. It seemes they hate gatting screwed just as much as the rest of us hate getting screwed by them. Sue the government? Get over yourselves.

Socialism is now looking pretty good to these capitalists when they foolishly loose their money in high risk investment - let the public bail me out. Their inflated egos love boasting how much money they make in the stock market and how clever they are at turning huge profits, and yet their egos are too weak to admit when they loose money on foolish investment - it's always somebody else's fault. Their greed is as guilty as Madofffor their predicament. Capitalists love getting rich and trumpeting the virtues of a capitalist market when it's on the up side. They are now finding out what the down side looks like and all they can do is cry "foul!" in a game they didn't play very well by throwing caution to the wind. It seemes they hate gatting screwed just as much as the rest of us hate getting screwed by them. Sue the government? Get over yourselves.

The government is already spending and wasting too much money.  Obama has spent more than all of the presidents combined with zero affect on the economy, the jobbing market and the improvement of the conditions being faced by most every american taxpayer.  These people were greedy and ignorant.  How can someones fund out perform other firms by such a large margin.  If its too good to be true, believe me its a scam. They got greedy and it's their burden. I have lost miilions on ex wives and poor judgements myself. I take full responsibility for my losses.  I pay more money in taxes than most, and it behooves me that everytime someone gets their caboose kicked, they cry for help.  Grow up people.  When you were winning you were happy, now that you have lost quit the WHINING!!

Those who trusted Madoff were themselves greedy also.

"If it's too good to be true...."

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