johnhhaskell
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He was a crook from the start, please at least check Bloomberg before posting.
if there "are 12 people dedicated to the split strike conversion strategy": name the other 11, so the FBI can fit cuffs to them. Obviously you did background checks on them as part of your due diligence, so you should have names and home addresses for all of them. (Nicola Horlick - this goes for you too).
@ 15- you are a moron @8- Madoff was making regular distributions. The supposed "scheme" was all short term trading therefore ordinary income. Carl Shapiro will have a lot of luck trying to amend his 1971 tax return (reported first year of his investing with Made Off) to reflect the fact that he paid income tax on fictitious profits. Not to pick on Carl Shapiro, but he will also have to defend himself (as will many others) against claims made against his fictitious profits by others. So he gets slammed both ways- taxes paid and already gone, claims against whatever he has left. Next question: pre 1982 there was a 70% income tax. Who in his right mind would have been interested in "earning" 10% with Madoff, minus 70% tax = 3% at a time when Treasuries yielded 14%? Even with the top rate cut to 35% it barely made sense. Even less after you gave a rakeoff to these various bozos in Nyon, London or Greenwich who were doing "due diligence" in exchange for a quarter billion a year in fees.
they also got a complaint that Allied Capital was a Ponzi scheme, so they quickly swung into action to investigate...the person who brought the complaint. Now that ALD is off 90% from where Einhorn gave his speech I wonder if anyone at the SEC will offer an apology.
similar thing happened in Russia Sept '98. Head of the Central Bank decided that he didn't like the USD/RUR rate that was being quoted and decided to just shut the market until the price was "right." Someone reminded him that 75% of Moscow's food supply was (at the time) imported and he changed his mind. Probably the Icelanders will do the same.