It brings up a good question, do the madoff investors deserve a bailout. If some of the madoff investors fail it could cause serious economic and systemic damage?
hey it would be awesome right, nobody will ever lose now. http://www.reuters.com/article/governmentFilingsNews/idUSLF6597520081215
Pelosi to the rescue!!!! Barney Frank and Pelosi prob will go down in history as the most irresponsible pols in history. They will no doubt extend this recession for a generation to come.
Every LOSER wants a bailout, but nobody wants regulation... out of concern that regulation will stifle business. Well I say... if some business is a candidate for a public-funds bailout, he should be regulated so tightly that he can't even FART without permission. Even if the regulators go overboard and F' it up, it's still better than all these institutions going tits up and then begging to be reimbursed by other people's funds.
Of course the hedge fund association wants this, if the government insures losses there will be nothing to sue about. I don't think it will happen because the public outcry would be deafening. Every American who lost money in his or her 401(k) last quarter would be steamed. It especially won't happen in the Madoff case first because it would look like wealthy Jews are getting special treatment.
The only entity I can see possibly getting a bailout would be the SIPC. They only have about $1.5B to cover losses as far as I know
If these people get a bail out I'm seriously going to just stop paying my income taxes. Income taxes of the common man going to make the super rich whole again cause some of their investments didnt work out?? What is this world coming to?
I can't fathom how there would be a justifiable bailout given that there's no systemic risk caused by the Madoff fraud. In the very unlikely event there is some kind of bailout (other than SIPC making good on valid brokerage acount insurance, not hedge fund investments), I might have to start giving some credence to the Zionist conspiracy theorists, given that something like 90% of the individuals and charities that invested with Madoff are Jewish (at least based on what's been reported in the media).