Madoff’s magic
How could an obscure hedge fund manager control — and lose — billions of dollars while attracting almost no attention? As Jeff Matthews writes on his “Jeff Matthews is Not Making This Up” blog, investors wanted to believe in Bernie Madoff’s unbelievable results.
People simply want to believe good stuff, not bad stuff. It’s human nature.
Investors wanted to believe Enron’s numbers were legit. They wanted to believe AIG’s earnings were real. They wanted to believe Fannie Mae and Freddie Mac could grow earnings 15% forever. And we don’t mean your average day-trader.
We mean professional investors.
Don Mecoy
Business News
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