Tag Archives: investment

The Wizard of Lies: Diana Henriques

By Russel Kinnel | 05-24-2011

What Investors Should Learn From Bernie Madoff

Author Diana Henriques believes that the Madoff scandal underscores the importance of vigilance and research in selecting an investment advisor.

Russel Kinnel: Hi. My name is Russ Kinnel. I am director of mutual fund research for Morningstar, and today I’m going to be talking with Diana Henriques, author of The Wizard of Lies, a book about Bernie Madoff who pulled off the greatest Ponzi scheme ever.

The first question I want to ask you is about some of the research you did looking into his early life, and it’s really striking to see the signs of what would later become a giant Ponzi scheme were really there early on if you knew where to look.

Diana Henriques: That’s true, Russ, and I was quite surprised at that, as well. One of the mysteries I’m afraid, that will live as long as Madoff does, is when exactly the Ponzi scheme started. But I was able in my research to uncover an incident in 1962 when he was a very young over-the-counter trader with his own little firm.

He had invested money that was given to him by friends and family in very speculative, risky, over-the-counter stocks. In a market air pocket in May 1962 the bottom just dropped out of those stocks, and they lost all their money. But rather than confess that to them, he covered it up. He bought the shares back from their portfolios at what they paid for it and didn’t reveal but for that they would have been completely wiped out.

Now, he insisted to me, after the prison interview I had with him in August of 2010, that he kept it a secret from the investors because he knew that if he told them about it, they would insist that they take the losses and that he not nearly bankrupt himself to cover them up for him. But I don’t really buy that. I think he burnished his own reputation as the boy genius in the family and managed to hang on to those investment clients by lying to them about what he had done to prevent those losses in their accounts.

Now, that’s not the beginning of the Ponzi scheme, there’s no doubt about that. But it certainly was a very telling experience in the young life of the young Madoff.

Kinnel: You certainly get the sense that he, and maybe even his father to a degree, were trying to put a veneer on things that made things look better. And maybe all along he was trying to make it look like maybe he was a little more skilled investor than he was and that everyone was better off than they really were?

http://www.morningstar.com/cover/videocenter.aspx?id=382418

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Expectations And Speculation by Henry Hazlitt

3. Expectations And Speculation…. The Failure of the “New Economics”

Friday, January 08, 2010 by 

http://mises.org/media/4434/13-Expectations-And-Speculation

The Gold Series: Gold as an Investment (Part 4)

http://www.visualcapitalist.com/portfolio/the-gold-series-gold-as-an-investment-part-4

Gold as investment...Infographic

” DOW 14,000, A Grand Deception…pump and dump….” Gregory Mannarino

Must Watch. DOW 14,000, A Grand Deception. By Gregory Mannarino

Published on Feb 1, 2013

Usury: Making the Rich Avaricious & the Poor Poorer…108morris108

Usury: Making the Rich Avaricious & the Poor Poorer

Uploaded on Oct 13, 2010

This video explores the historical critique of Usury, its prohibition and some alternatives.

Usury – the lending of money at interest has been condemned throughout history by noble people of ALL faiths (Hindus, Buddhists, Jews, Muslims, Catholics, Greeks). It makes the poor poorer and gives rise to the most avaricious of lenders.

We are actually being told our wars are for the purpose of enriching these people – and this is presented to us as an acceptable reason (not in the video).

Instead of money being a medium of exchange, interest rates elevate money to being an end in itself.

It is strange that so many Jewish people are in the lending business, when lending at interest rates is treated with scorn in the Old Testament, although permissible in the event of lending to a non Jew for business purposes.

But nowadays we are all indebted, Jew and non Jew to interest rates for our housing and living expenses.

“In the Old Testament, usury is considered an “abominable thing,” listed next to rape, murder, robbery and adultery. (Ezekiel18:19-13).

The Ancient Greeks regulated interest, and then deregulated it. Upon deregulation, there was a catastrophic amount of unregulated debt which lead to the selling of Athenians into slavery. Plato (Laws, v. 742) and Aristotle (Politics, I, x, xi) both agreed that usury was immoral and unnatural…”

from: http://stopusuryinamerica.com/whatisusury.html

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BANKER OCCUPATION: by Stephen Lendman

BANKER OCCUPATION:
Waging Financial War on Humanity
by Stephen Lendman

http://www.claritypress.com/LendmanII.html

Stephen Lendman strikes to the heart of Wall
Street/government collusion to protect the
powerful and drive ordinary Americans into
the Third World ditch.

Here’s some straight talk on unaffordable
health care, unrepayable student debt,
bankrupt cities, money printing madness,
trillion dollar tax havens, IMF financial
terrorism, the austerity hoax, banksters’
market-rigging thievery, and the domestic
police, media and legislative repression set to
keep all that in place.

Table of Contents

Wall Street Runs America / 9

Class War in America / 15

The Austerity Hoax / 29

Trillions Stashed in Tax Havens / 34

Libor Scandal Reflects Cesspool of Financial Fraud / 38

IMF Financial Terrorism / 46

JPMorgan Chase on Capitol Hill / 58

George Soros—New World Order Confidence Man / 70

Goldman Sachs: Making Money by Stealing It / 77

Big Win for Predatory Healthcare Giants / 82

Debt Ceiling Roulette / 88

Money-Printing Madness / 94

US Cities Going Bankrupt / 104

America’s Great Divide Between Rich and Poor / 108

Hard Right Extremism in America and Europe / 113

Constitutionally Protected Symbolic Speech / 121

Washington Targets Occupy Wall Street / 125

Targeting Journalists covering OWS Protests / 130

Social Justice on Trial in Canada / 135

French Workers’ Struggles for Justice / 139

“Grand Bargain” Betrayal Coming / 142

Legislating Tyranny in America / 147

Banker Occupation of Greece / 158

Responsible New York Banking / 165

Public Banking Works / 170

Franklin Roosevelt’s Second Bill of Rights / 175

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