Why Madoff didn't tried a passive strategy, like buy-and-hold, covered-calls, etc?

Discussion in 'Professional Trading' started by crgarcia, Aug 3, 2009.

  1. Why Madoff didn't (at least) tried a passive strategy, like buy-and-hold, covered-calls, etc?

    He would had got market results, (and maybe an excuse for the losses: "hey, the market plunged 50%, with our 2:1 leverage this was disastrous").
  2. bukkan


    maybe thats exactly what he did. buy-and-hold and the market plunged.
  3. If he did, he would have already said so.
    And he would be out of prison.

    Losing money is not a crime.
    Even less when everybody lost big.
  4. Madoff did not invest or trade the funds in the account!

    GOOGLE Ponzi you 1/2 wit.
  5. Do you have to insult?
    How far will you get in life if you can't sustain a decent conversation without insulting?
    Will you ever be able to get a partner? Run a company? Even get a job? without insulting.

    And yes, he didn't invest at all (in his later stages).
    Why he didn't invest?
    Even if he invested into something like T-Bonds that paid out about half his customers interest paments, he would get time, and he would not be broke and in prison.
    This is the point of this thread.
  6. Greed can lead to utter stupidity and recklessness. Just leave it at that.
  7. sjfan


    Because you are indeed a dim witted idiot given your long and pathetic history of posts.

    Judging by your comments, you are either horribly ignorant, or a willful troll. A tiny ounce of thinking will resolve a question like "Even if he invested into something like T-Bonds that paid out about half his customers interest paments".... where the hell is he going to find a t-bond that pays enough interest to meet the redemption request from his clients? Are you sure you know how a fund is supposed to work, what the interest rates on t-bonds are, or, indeed, what t-bonds are?


  8. academic


    Google "ponzi".

    He wanted to attract investors by paying extraordinary high returns. Investing the funds was not his objective. Even if he had invested the money before the crash, he would not have been able to use this as an explanation for the losses, because the returns he had been giving to people were not real.
  9. Just put The OP on ignore, he starts these types of retarded threads all the time and is not even worth responding to.
  10. oraclewizard77

    oraclewizard77 Moderator

    Not really, he was claiming around 10% per year returns not 30% - 40% returns.

    However, the truth was he was rich before he started this scam. He could have hired some traders to trade for him or develop a system that he could buy for $ 1 million plus extra if it reached certain targets and made money and not be in jail now. Many hedge funds employ traders and system developers. Even when they lose money they don't go to jail.

    #10     Aug 3, 2009