Stock Scams That Madoff With Your Money!
Investors put their faith in the likes of Bernard Madoff, and this faith was betrayed! Barnard Madoff (Charles Ponzi 2) has become a real shame considering the current state of things in the financial markets. Today Madoff Type Stock Scams have hurt many people all over the globe.
Mr. Madoff used to be a highly respected financier and former chairman of the NASDAQ. He recently admitted to administrating a ponzi stock scam that cost innocent investors over 50 Billion Dollars!
This is the sort of corruption that has ruined Wallstreet and Mainstreet! But for all the investors in the future let this be a text book lesson! We must learn from these kinds of scams in order to avoid this same type of horrible financial lost in the years to come.
The infamous Charles Ponzi of Boston developed the ultimate scam "The Ponzi Scheme" and in the 1920's cost investors million of dollars! Rather than making profitable investments with the money of new and unsuspecting investors, a ponzi operator was giving away the money of new investors to older investors to make them happy.
Eventually Ponzi's entire edifice did collapse. This is precisely what happened when Bernard Madoff orchestrated this corrupt stock scheme. We can learn a few important lessons from this saga, and we had better do so if we want to avoid getting the wool pulled over our eyes again!
Diversify-Diversify-Diversify should be The Golden Rule of investing. Because Madoff Type Stock Scams work so damn well with stock investors who don't Diversify! By putting all your financial eggs into one basket you may be left holding a basket full of rotten financial eggs! The Post Office's credo is: If It Looks To Good To Be True It Probably Is! This may be simplistic because there are rare great investments out there and you don't want to miss them because they look like scams, but when a great investment does come along, it's time to research-research-research before you put a penny into it!
Looking back on Madoff and his years of paper trail scaming, it seem impossible that anyone in their right mind could fall for this con artist! The stock market went up some years and Madoff made investors money and the stock market went down some years and Madoff made investors money? it's just a Fantastical Investor Fantasy! Not to say you can't make money in Bull and Bear markets, but it takes real investor savvy the kind that Madoff did not have one iota of. He just had the con artist savvy to relieve people of their money.
We pay taxes to support services to help us and some tax money goes to The SEC. But in The Madoff Affair The SEC did next to nothing? We all know YOU ARE TAKING A RISK WHEN YOU INVEST and this risk should be under the umbrella of The SEC, but it certainly was not in The Madoff Affair. Madoff scamed large banks savvy stock brokers, people with MBA's and more, so if you were just a Madoff average investor I would not feel too bad because Mr. Madoff got the best of them. Of course if you were a Madoff Victim there is a great website you can go to for help: bernardmadoffvictims.com
You can keep from being scamed most times by using good research, but the fact is we all get taken for a ride sometimes. Hedge Funds are very risky as an investment so for the individual investor it would be safer to stay away from them. In this economy today to retain your investment captial or have a better chance of keeping your investment captial at the minimum, stick with much safer Mutual Funds, Bank CD's, or even Gold. The economy may or may not get better soon, so your saftest course in 2009 may just be to leave most of your money in the bank. (c) 2009 William R. Wiedow Ph.D. - 23159
Mr. Madoff used to be a highly respected financier and former chairman of the NASDAQ. He recently admitted to administrating a ponzi stock scam that cost innocent investors over 50 Billion Dollars!
This is the sort of corruption that has ruined Wallstreet and Mainstreet! But for all the investors in the future let this be a text book lesson! We must learn from these kinds of scams in order to avoid this same type of horrible financial lost in the years to come.
The infamous Charles Ponzi of Boston developed the ultimate scam "The Ponzi Scheme" and in the 1920's cost investors million of dollars! Rather than making profitable investments with the money of new and unsuspecting investors, a ponzi operator was giving away the money of new investors to older investors to make them happy.
Eventually Ponzi's entire edifice did collapse. This is precisely what happened when Bernard Madoff orchestrated this corrupt stock scheme. We can learn a few important lessons from this saga, and we had better do so if we want to avoid getting the wool pulled over our eyes again!
Diversify-Diversify-Diversify should be The Golden Rule of investing. Because Madoff Type Stock Scams work so damn well with stock investors who don't Diversify! By putting all your financial eggs into one basket you may be left holding a basket full of rotten financial eggs! The Post Office's credo is: If It Looks To Good To Be True It Probably Is! This may be simplistic because there are rare great investments out there and you don't want to miss them because they look like scams, but when a great investment does come along, it's time to research-research-research before you put a penny into it!
Looking back on Madoff and his years of paper trail scaming, it seem impossible that anyone in their right mind could fall for this con artist! The stock market went up some years and Madoff made investors money and the stock market went down some years and Madoff made investors money? it's just a Fantastical Investor Fantasy! Not to say you can't make money in Bull and Bear markets, but it takes real investor savvy the kind that Madoff did not have one iota of. He just had the con artist savvy to relieve people of their money.
We pay taxes to support services to help us and some tax money goes to The SEC. But in The Madoff Affair The SEC did next to nothing? We all know YOU ARE TAKING A RISK WHEN YOU INVEST and this risk should be under the umbrella of The SEC, but it certainly was not in The Madoff Affair. Madoff scamed large banks savvy stock brokers, people with MBA's and more, so if you were just a Madoff average investor I would not feel too bad because Mr. Madoff got the best of them. Of course if you were a Madoff Victim there is a great website you can go to for help: bernardmadoffvictims.com
You can keep from being scamed most times by using good research, but the fact is we all get taken for a ride sometimes. Hedge Funds are very risky as an investment so for the individual investor it would be safer to stay away from them. In this economy today to retain your investment captial or have a better chance of keeping your investment captial at the minimum, stick with much safer Mutual Funds, Bank CD's, or even Gold. The economy may or may not get better soon, so your saftest course in 2009 may just be to leave most of your money in the bank. (c) 2009 William R. Wiedow Ph.D. - 23159
About the Author:
William R. Wiedow Ph.D. Has had 25 years of experence as a Stock Broker Day Trader and Private Stock/Futures Newsletter Writer. Dr.Wiedow has had a life long passion for uncovering business and investing scams using his contacts in over 34 countries. His insightfull articles on business and investing can be found at: madoffsstockcon
posted by X - Men @ 2:08 AM
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