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Why does Bernard Madoff evoke record-breaking resentment?
By Dafna Maor
Tags: Israel news, financial crisis 

These days, the world's longest line is probably the line of people hoping to hang Bernard Madoff - history's greatest thief. Never before has one thief stirred up this much hate. The extent of rage and resentment expressed toward him seems to shatter all known records, in the wake of the worst financial crisis in history. Before the debacle was exposed, it seemed like bankers were the biggest villains of our time. But Madoff, especially within Jewish charity circles, is now seen as a wicked Haman to be ceremoniously hanged from the tallest tree. Only this Haman happens to be Jewish, and despite his nearing conviction, this affair provides little reason for delight.

Madoff, for those who haven't been following, ran an exclusive investment firm, catering only to a select few, and promising the Holy Grail of the investment world - steady and un-fluctuating returns. One had to invest through large financial institutions in order to invest in his fund, or at least have connections to certain financial personalities, who, in effect, served as Madoff's middlemen. Thanks to a past stint as the chairman of the NASDAQ stock exchange, as well as his Jewish connections, Madoff's fund became a significant draw for many well-endowed Jewish Charities.

Madoff's scam was in essence nothing more than a simple pyramid scheme. His fund never turned any profit, but when customers asked for their money he would simply transfer money from one account to the other. Actually, his entire business depended on a well-oiled fund-raising operation, which continued to pump in money in order to cover over the missing profits. When the financial crisis erupted, his panic-stricken clients tried to withdraw their investment, even though they didn't appear to be losing money in Madoff's fund.
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However, there wasn't enough money to cover such a sizable withdrawal and, finally, Madoff was caught. He confessed to having embezzled over $50 billion. Later on, it emerged that the sum may have been exaggerated.

The biggest mystery that remains is what really happened to the money, since there is no evidence that Madoff invested it and lost.

It seems that what the world finds so infuriating is not the fact that Madoff was an anti-Robin Hood of sorts, stealing from the poor - those supported by the many charities which invested their money with him - but the fact that he managed to dupe the rich and sophisticated in such an idiotic way. People just don't like when they're made too look stupid, and that is why the emotions that Madoff evokes are surprisingly intense.

Those who invested with Madoff were not widows and orphans, nor were they the managers of widows' and orphans' pension funds. Those who chose to invest with Madoff were, for the most part, extremely wealthy, and a large portion of them invested their own personal capital in addition to the charity funds. Everyone was thrilled with the opportunity to invest in his miraculous fund, yielding profit after profit for so many years without anyone stopping to ask how the conjurer was working his magic.

Some investors caught on to the swindle - the New York Securities Authority received numerous complaints against Madoff's fund. Several European banks who were asked to invest with Madoff requested a thorough investigation of his operation, and consequently issued a warning - an apparently very secret one since no one seems to have known about it - not to invest with the New York financier.

Ultimately, the Madoff affair put a specific face on the global financial crisis, one easier to hate than the amorphous faces of Wall Street CEO's, the Chairman of the Federal Reserve, the U.S. President, and countless other participants in the financial festivities that burst the credit bubble.

Madoff will probably go to jail for a very long time. That, however, will prove a small comfort for those who lost their money. Thousands lost their life savings; thousands more lost the chance for assistance from any number of charities. The only comfort these people can hope for is the opportunity to rejoice at Madoff's downfall.


Related articles:
  • Madoff to plead guilty, faces 150 years in prison
  • Bernard Madoff expected to plead guilty in $50 billion fraud
  • Wiesel says he cannot forgive Madoff
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      1.   Madoff 20:42  |  green brown 11/03/09
      2.   Madoff 22:49  |  Y.Shulamith 11/03/09
      3.   A microcosm of what we all did 23:16  |  Colin Wright 11/03/09
      4.   Why? 03:17  |  Mark Lincoln 12/03/09
      5.   to Mark #3 06:06  |  Susan 12/03/09
      6.   He distracts from the trillions lost in the current meltdown, and 07:00  |  DJStahl 12/03/09
      7.   WHY because he was capable of generating wealth honestly 07:48  |  PETER SM 12/03/09
      8.   I, FOR ONE, COULDN`T 08:52  |  Robert 12/03/09
      9.   #4-u r much more interesting to read then 13:06  |  svietka from shomron 12/03/09
      10.   A fool 14:00  |  Harry 12/03/09
      11.   Did those good folk really lose..? 16:58  |  Stephen. 12/03/09
      12.   What if Madoff wouldn`t be Jewish? (second attempt) 17:58  |  Fortuna Benmayor 12/03/09
      13.   Relevancy? 19:43  |  A. Rabun 12/03/09
      14.   Not much different to how israeli`s bought their land 03:11  |  John 15/03/09
      15.   Madoff is very calm: the Gang?s calculated everything very well 18:25  |  Morpheus 15/03/09
      16.   # 12 He will be considered to be Jewish anyway. 18:30  |  Ralph 15/03/09
      17.   Bernard Madoff 22:07  |  Graham R-B 16/04/09
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