no, most don't have strategies that would scale to 50B. your conclusion is a little naive... returns are irrelevant if your edge taps out at 7 figs/yr.
Why will they not tell us where the money is?? You do not just lose or spend $50 billion. Only the most advanced national or international group (read: terror group) could use and allocate that kind of money. My suspicion is that a radical group of zionists is accumulating a war chest for more war. And, we are to believe that he acted alone?? Americans love to believe in the stand-alone villian, a single bogeyman onto whom they can pin all of their troubles (Bin L, Saddam, Chavez, Lee Harvey O, Madoff, history is littered with them).
I read today that he was connected with organized crime. He is probably taking the fall for this. Trouble is, everyone is focusing on him.....what about the naked short sellers who literally take down some wonderful start ups....they go free and probably do more damage. check out : www.deepcapture.com Please give it a read...expecially the part about how pensions, etc are raided.
That is the headline but it is not the whole story. I mean those that intitially invested with the Ponzi scheme were probably aware of it and should have been considered accomplishes of his. They probably made 2 or 3 times their initial investment before the Ponzi collapsed. The whole setup is much more complicated and sophisticated in real life than what you described. You need customers to talk others into the scheme. The mechanics are far more complicated then any trading strategy you can think of with an edge.
here is why they threw the money at his feet. Madoff said he could return 12% per year and not take a management or a performance fee to do it. he said he made his money on trading spreads, etc. so these feeder funds thought "hey, i can raise money, give it to madoff and I charge the 2/20 hedge fund fee- and he does all the work!" these feeder funds were created to exploit the fact that madoff didnt charge any fees!!!!!!!!!!!!! they literally got the money and then sat back and collected fees- goes to show if its too good to be true it - you know the rest.
exactly, I'm sure everyone that got in this got in with the idea that they were benefitting from Bernie front running and insider trading...His equity curve was an absurdity that I can't believe anyone would buy into this without thinking that. Thats why I think its ammusing these people got crushed, they got what they deserved.