What Bernie Madoff Couldn't Steal From Me

I was on vacation on a Russian Icebreaker in Antarctica when I got a page to go up to the bridge for a satellite phonecall. When I picked up the phone it was my wife Geneen, and she said a few words that turned my world upside-down. She said, "Bernie Madoff has been arrested. His entire fund was a scam." What she didn't need to say out loud but we both knew in that moment was that we had just lost our entire life savings.

We both felt incredibly anxious inside and fearful about the future. Could we even afford to keep living in our house? Everything about our lives was up in the air.

After a few minutes one of us had the presence of mind to say, "You know what---we are no longer the kind of people who can afford to talk on the satellite telephone at $10 a minute!" So we hung up.

A wave of fear washed over me when I hung up the phone. Wherever I've traveled in the world I've always been able to get home... but this was Antarctica! There was no way home.

You can see what happens next on Matt's video What Bernie Madoff Couldn't Steal From Me here:

Shortly after I returned from Antarctica, Geneen and I went to a dinner party for friends of ours who had all invested in Madoff--- actually I shouldn't call it a dinner party, it certainly did not feel like a party--- it was more like a wake, or at any rate, a potluck support group with lots of food. Early in the meeting, one of my friends posed the question, "If you had to do it all over again, would you do anything differently?" And the first two people who responded both said something that amazed me--- they both said, "No, I wouldn't change anything at all. The things I've learned about myself, the changes in me--- how awake and alive I feel now--- I wouldn't trade that for any amount of money."

I remember thinking to myself, "Well, I have certainly learned a lot from this experience, but I definitely wouldn't mind having some of the money back, too!"

But I've been slowly starting to understand what they meant---that there are things in life that are more valuable than money. And one of those things for me is the very strong sense of community that has developed among the Madoff investors. My work before the Madoff crisis was about building community through laughter and play, and now I have an even stronger sense of community in action. In my own circle of friends, in response to the Madoff betrayal people are moving in with each other, supporting each other through bankruptcy and divorce, and helping each other keep their heads above water in all sorts of everyday ways.

Some genuine "wealth" in our lives is always created when we reach out to each other, when we make connections with each other, when we form a community together in times of crisis.

And that kind of wealth does not decrease in difficult economic times--- if anything, it increases.

All of which is not meant in any way to justify Madoff's monstrous actions. In case you haven't heard, Madoff will be sentenced on June 29, and my vote is that Judge Chin gives him the maximum possible sentence.

Comments

[jackox]

I do feel that these comments are mean-- I went through Katrina in New Orleans and many people said to me I deserved it for living in New Orleans. I do not understand when this country lost their empathy. I also lived through 911 in NYC-- moved to New Orleans in 2002-- I found that after an initial coming together in NYC-- people became greedy and mean. What will happen to us as a nation if we continue like this. I have also found that one can learn the truths of community that Matt Weinstein talks about in this blog- when going through catastrophic events. And I must also comment here that my very wide circle of friends and colleagues all over the world supported me in any way they could--financially and emotionally, after Katrina- It was only the comments of strangers I met who had zero compassion.

[breakingpoint]

I have no sympathy for the people who invested with Madoff, they did it because they thought he was gaming the system, taking advantage of others. It was all fine and dandy as long as it was in their favor - turns out he was gaming them.

[breakingpoint]

I wish just one of his investors would just come out and say they were just greedy and kept their mouth's shut or didn't bother to check things out because they thought they had something exclusive, something few others had, a guy with insider information.

[Matt Weinstein - Huffpost Blogger]

There is a popular misconception that Madoff operated a Hedge Fund that promised exorbitant returns. In fact, on paper, Madoff’s fund looked like a pretty solid, conventional, conservative investment. Every month the Madoff investors got statements that looked just like a Schwab or a Fidelity statement--- that showed a basket of blue-chip stocks from the S&P 100 that the investor “owned.” And every December the statement showed that Madoff got out of the market entirely and put the money into Treasury Bills. The only catch was… these statements were all faked! Madoff never actually bought anything at all for his clients. How the SEC (which inspected Madoff eight times starting in 1992 and gave him a clean bill of health every time) never caught this is beyond belief.

[Ken Dychtwald Ph.D. - Huffpost Blogger]

Wow - I must admit that while greed is certainly an unappealing human quality (and knowing him and his work, I do not believe that Matt Weinstein is greedy in any way), nastiness and unkindness is not too attractive either. Reading some of these comments - and the anger and meanness they project is saddening.
Ken

[Parducci]

I'm not angry. I was simply noting the lack of any acceptance of responsibilty on the part of the author. I admit that I don't have much sympathy for these folks.

[csmcmillion]

"What she didn't need to say out loud but we both knew in that moment was that we had just lost our entire life savings."

Madoff ran a hedge fund which, by definition, is for speculative funds that the investors can afford to lose.

Idiots.

[iplaw]

I find it interesting that Americans are so outraged by Madoff. Our country is full of killers, rapists, kidnapers, modern slavers, etc. All that Madoff did is steal money, arguably from the kind of people best able to withstand having their money stolen. Most thieves in the world steel from people who have no savings whatsoever. Madoff never used violence, nor did he prey on the weak, making him a much better class of criminal than most.

He has gotten more press than some serial killers and seemingly more public outrage.

[RClaus801]

My description of B. Madoff set to a popular Beatles tune

http://www.youtube.com/watch?v=7DWtQNi2LlQ

[Robster]

Does anyone else thing Madoff looks like George Washington?

[sallythewerewolf]

YES!! I've been afraid to say it out loud, but he really does...

[Eddy333]

You wouldn't have lost nearly as much as you did if you did not let your greed convince you that anyone's fund could guarantee you a 10% or better return. All the people who invested in Madoff's scam, who were rubbing their hands together at the thought of that kind of return rate, have no one but themselves and their greed to blame.

You must have been crazy to think that there was not a catch.

[Parducci]

Have you at all reflected on the role that your own greed and gullibility played in your losses? After all, Madoff offered higher returns than one would have been able to achieve with a legitimate investment process. While it's nice that you've bonded with your friends, it seems to me that what you and the other Madoff victims seem to lack is any sense of responsibility for your situation.

[hemnebob]

perhaps they would of been great victims for the pyramid gambles too?
remember those? just about 10-15 years ago...it sounded way too good to be
true and so did the profits from madoff...kind of like taking a pill to lose weight...
a great idea but hey, it just don't work like that.

why wasn't good common sense at work when people nodded yes to madoff?

[Squaker]

I have very little sympathy for Madoff's supposed "victims"

You say you're money got swindled out of the market;
But isn't that exactly what you were trying to do to other people by investing in hedge funds in the first place?

[Indra]

Your right, some things cannot be taken away. I am glad however that I did not have money at the time to invest with Madoff.

[RebeccaMorgan]

Matt, I love that your positive attitude is showing one doesn’t have to take on the victim mantle after being victimized. You've approached your recovery from this fiasco with maturity, humor and positivity. You make all of us professional speakers proud by exemplifying how anyone can take a tragedy and turn it into an opportunity. Thanks for sharing your journey so openly.

Rebecca Morgan, CSP, CMC
http://www.RebeccaMorgan.com

[repugnicansfearme]

Madoff in these pictures looks like an evil George Washington.

[Wilderthansome]

This entire financial crisis has affected many in the same way. In my families case we were set to sell our business of 22 years in July of last year, the contracts were signed and we were waiting for the due diligence (90days) to end when the crisis hit. The deal fell through and we are now struggling to make ends meet. We lost 6 of our 18 employees and everyone is on 40% less pay. We ourselves are moving in with friends in order to save money that will in turn go back into keeping the business alive.

Although we have known our friends forever they are even closer now and if our business survives we have all decided to continue to live together as we are so enjoying our mealtimes together and the ease of running a household with 4 adults and one 7 year child.

[chicgirl]

Well said. Everyone who lost money through Madoff should read this post. The money you once had did not buy the friends who are now sticking with you and each other. It's so wonderful to hear how you've managed to be grateful for what you do have. That's true grace.