Inside investment: Lessons from Madoff

People wanted to believe ponzmeister Madoff because they crave stable, compounding returns. After his spectacular fall from grace, calls to shine a light on the opaque world of hedge funds will be irresistible.

The story of Brewster’s millions has been adapted many times from the original 1902 novel. Perhaps the best known is the film version starring Richard Pryor and John Candy. The story is a simple one: in order to inherit $300 million Pryor must first lose $30 million in 30 days. If only he had known about Bernie Madoff, the King Midas in reverse of New York’s Upper East Side. $30 million would have been a mere bagatelle to Bernie, who seems to have burnt his way through a staggering $65 billion.

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