The Lesson to be Learned from Bernie Madoff

So Bernie Madoff got the proverbial book thrown at him with Judge Denny Chin's 150 year sentence. Madoff leaves us the same way he came onto our collective radar screens: quickly and with grandiosity. But make no mistake. There's another Bernie Madoff waiting to take his place, and another after that, and another after that one. As someone whose wife was murdered, I can guarantee you she will not be the last innocent victim to fall prey to a brutal monster. Unfortunately, when it comes to the pathological and the mentally deranged, the specter of a stiff prison sentence serves as zero deterrent. The streets are littered with evil predators searching for their next victims. It's best we know that and not fall into a false sense of security because, "Phew! Bernie's in jail!"

When it comes to our financial health, what we can learn from the Bernie Madoff tragedy is this: live your life with more street smarts than ever. Don't let the bad guys win, and don't be stupid. Or greedy. Greed will get ya every time. So here's a few simple tips:

1. Never put all your eggs in one basket, no matter how tempting
2. Be leery of investments that continually show gains even in a global economic recession
3. Check your monthly account statements. If they look like they were produced by a high school kid, run
4. Never escort a stranger to the ATM machine to deplete your account so that he can invest the money and make you both rich
5. Never send any money to any "nice fellas" in Nigeria who've informed you through a grammatically-challenged unsolicited email that there's millions waiting for you in Abuja if only you wire them $50,000+ to "release the funds"

By following these few simple rules you will most likely preserve your hard-earned life-savings and reduce the likelihood that, because of unscrupulous scumbags like Bernie Madoff, you'll end up working as a 70-year-old greeter at Walmart.

Comments

[carolrhill814]

What does putting him in jail do it won't undo the damage done to all of the people that gave their money to them?

But the people that gave their money to him knew that they were getting more money on what they gave him then anyone else had gotten when they put in a regular bank didn't they smell something that was a little off or they enjoyed the money so much they were in a fog.

What I think that madoff should do is clean toilets with his lips but I don't mean in jail out in the streets so he will understand what he did to his "friends" . You could tell by his face that he wasn't sorry for anything he did you can tell he doesn't have any connection at all and that is a fact.

Now his wife really knows what it is like to lose her home and all of her belongings the very hard way just as her own family and friends did but that is still not enough as far as I am concerned.

[condor101]

I agree that there are many Madoff's lurking in society, trying to steal your money. Also, we should be aware that the stock market is NOT a place to invest, but a system to speculate your money. The idea of "Investment" was developed as a marketing tool to blind the average consumer that their money is safe and can produce a nice return over time. That's just b.s. Overall, more people lose money than gain in the stock market.
Do the right thing people: Work hard and save your money and spend with cash vs credit cards. Also, invest and buy a home, instead of renting. Also, make sure you're in a profession that can't be exported: hairdresser, plumber, fireman, policeman, attorney, unionized teacher. Or start a business selling imported products, since everything that we buy is imported already.
Being a drone and working for corporate america will get you no where. They will use you after 20 years and you'll have to look for a new career or job in your 40's /50's. It's a tough world out there. It's definitely every man, woman, and child for themselves. Good Luck!!!!

[Sundialsvc4]

Bernie Madoff and his kind are nothing more than scapegoats, Andy. The real criminals here steal thousands of dollars from hundreds of millions of people ... one small cut at a time. They sell worthless securities. And, they bribe. Lordy, how they bribe.

[Proteus1946]

W. C. Fields said it best:

"Never give a sucker an even break, and never smarten up a chump."

Nuff said.

[rabrophy]

The real lesion from Bernie is for the scamers not the scamies:
Don't screw with Rich People!

[mcthfg]

The number one lesson should be "You can't get something for nothing." The stock market is a legal way to screw people, and shouldn't exist.

Let me put it this way - WORK = MONEY.

End the stock market.

[Ronald11838]

I'm probably one of the few who will agree with you. There are far too many people in the 'market' standing between a sucker and his money. Eventually they figure out a way to steal it. Beyond that, there is absolutely no way a sucker can know what is going on behind boardroom doors. Sadly, the regulatory agencies cannot be counted upon.

One of the greatest popular delusions is that one can, by practicing due diligence and doing his homework, "invest" his hard-earned money and profit from the experience.

Trying to get something for nothing all too often results in getting nothing for something.

[Lassie1]

Bernie is just the tip of the iceberg, I'm certain. Rampant greed has put more than a few solid gold toilet seats in more than a few of these thieve's homes....I wish Bernie the best, though, in his new phase of life. I'm surprised he isn't going to a country-club lockup, where I'm sure some of his purlloined loot will insure a bearable existence. Here's hoping Bernie lives a GOOD, LONG TIME - 20 years or more. Best of health, you old monster. Live a long, long time before you go to hell.

[TomDegan]

Bernie won't be the last - you can count on it.

The deregulation of the last thirty years almost guarantees that there are others like him who have been able to (for the time being anyway) successfully conceal there financial skulduggery.

I think old Bernie is just being used as an example. This article is absolutely correct. There are more surprises to come.

http://www.tomdegan.blogspot.com

Tom Degan
Goshen, NY

[jackwaddington]

Whilst we humans use MONEY as a means of exchange we will inevitably entice those that can scheme a way to get it. Yes, that includes what we call legitimate businesses. Stock trading, Profit, Gambling, Stealing, Ponzi schemes, Borrowing, Lending for interest etc. etc., are all part of the scheming we are compelled to indulge in (so we think). It's the 'thinking' that is out of whack. We actually don't NEED to exchange: just give and take without having to consider value ... think about it.

[CAPTAINSKIPPY]

Poor Bernie, seemed like a kindly and wise but regular guy, the kind you might like to "have a beer with".

[NicoloM]

Andy- as a former prosecutor I am very sorry that your wife was killed, and hope whoever did it has been brought to justice. Likely, you have wished a hundred different things would have been different, but your wife wasn't to blame, she was an innocent victim.
Madoff is a little different. He never said he produced anything. The magnficient wealth was always suspect and somewhat magical. His victims weren't all innocent, in fact, some may have gotten money out of the scheme as it went along.
Americans have gotten so accustomed to gambling in the stock markets they were easy marks for Madoff, epecially if they felt security in their identification with him. The Bush tax windfall for the wealthy had to go somewhere and it likely went to the likes of Madoff, and other Ponzi schemes like hedge funds and derivatives, which seem to be little more than smoke and mirrors. We are all susceptible to these crimes if our paradigm is that those represent "the economy" or are "investments".
When I hear Tom Tancredo say he wants to take a baseball bat to Madoff, I don't feel sorry for him because it is the way he views the world, it is always someone else's fault rather than his own. It is dangerous for people who thought they could get rich without doing anything to think of themselves as "innocent" victims-- which I think is the point of the second half of your post.
thanks

[aramos]

Main lesson:

IF IT SOUNDS TO GOOD TO BE TRUE, ITS IS!

[darker]

The Lesson to be Learned from Bernie Madoff:
Americans are GREEDY & STUPID at the same time.
Republicans CONNED us into thinking that gov't DEREGULATION is "a blessing".
Turned out to be A CURSE!

[realistic2008]

Stupendely said it.

[Greyghost1]

There are a bunch wating to take Madoff's place, they're all on our payoll in DC.

www.nextrevolution.net

I don't know why Madoff is the news, we've been taken in a scam by our representatives & their campaign contributors for trillions.

This has to be the biggest diversion in the world. That's how it works right. Create a diversion & rob the bank. We have trillions in debt & are still handing out money like candy on 10-31 to the crooks who broke US.

[EngineerBill]

I thought you were going to give the most important lesson of all. That is this.
THERE IS NO GOVT. AGENCY OUT THERE TO PROTECT YOU FROM FRAUD!
All regulatory agencies do is make sure the paper work is proper. Law enforcement is there (if they are successful) after the damage is done and your money is gone.
Caveat emptor as they say.