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They Told Me That Madoff Never Lost Money (Ben Stein)
New York Times ^ | December 28, 2008 | BEN STEIN

Posted on 12/30/2008 1:32:43 PM PST by nickcarraway

ABOUT two years ago, a little delegation from a major investment bank arrived at my home in Beverly Hills. These nice young people were from the bank’s “wealth management division.” I told them straight away that I didn’t have anywhere near enough wealth to make their trip worth their time, but they smilingly insisted that we could help each other.

They told me that if I invested a certain sum with them, they would make sure that a large chunk of it was managed by a money manager of stupendous acumen. This genius, so they said, never lost money. He did better in up markets than in down markets, but even in down markets he did well. They said he used a strategy of buying stocks and hedging with options.

I protested that a perfect hedge would not allow making any money, because money made on the one side would be lost on the other. They assured me that this genius had found a way to spot market inefficiencies and, indeed, to make money off a perfect hedge.

I thanked them for their time and promptly looked up Bernard Madoff online. Nothing I saw was even a bit convincing that he had made a breakthrough in financial theory. Besides, this large financial firm was going to charge me roughly 2 percent to put my money with Mr. Madoff’s firm. I could invest my few shekels with Warren Buffett for no management fee at all.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Crime/Corruption; Editorial; News/Current Events
KEYWORDS: benstein; madoff
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To: Onelifetogive
I should be in the company I just sold. I couldn't justify buying back in at a price higher than I had just sold at and waited. Stock hit $4 and I finally bit the bullet. I quickly rode it to $13 and bailed. It peaked at ~$16. I could kick myself for not staying in the whole ride.

Remember

Bulls get rich
Bears get rich
PIGS get slaughtered
41 posted on 12/31/2008 6:23:50 AM PST by Kozak (USA 7/4/1776 to 1/20/2009 Requiescat In Pace)
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To: Elsie

I used to be securities licensed and it was unusual to come across a client who didn’t know about “Buy Low, Sell High” but never, EVER followed it. See, they read this article in a magazine... Sigh.


42 posted on 12/31/2008 6:26:06 AM PST by Reaganesque
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To: Kozak
So is the DOW going to 900, or is gold going to 9,000?

The question is do you buy gold now?

43 posted on 12/31/2008 6:48:44 AM PST by EVO X
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To: Black Birch
The question is do you buy gold now?

Not my question as I bought plenty at 240 to 300 an oz.....
44 posted on 12/31/2008 6:56:09 AM PST by Kozak (USA 7/4/1776 to 1/20/2009 Requiescat In Pace)
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To: Kozak
Not my question as I bought plenty at 240 to 300 an oz..... Nice call! I didn't get any that low. I bought some in the $400 - $500 range.
45 posted on 12/31/2008 7:03:14 AM PST by EVO X
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To: ButThreeLeftsDo

Re#31 Good morning and yes, money too. Ben, Ben, what were you thinking? *sigh*


46 posted on 12/31/2008 9:08:48 AM PST by eureka! (Dear Lord: Some epiphanies for some of the 'rats now in charge, particularly BO? Please...)
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To: Reaganesque

Never ever....

It’s too easy.

Like trusting in Jesus for salvation - “It CAN’T be that easy!”


47 posted on 01/01/2009 5:44:40 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Black Birch; Kozak

But...

Do you guys actually HAVE the gold in your hot little hands or do you have a piece of paper stating that...

;^)


48 posted on 01/01/2009 5:47:13 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie
Do you guys actually HAVE the gold in your hot little hands or do you have a piece of paper stating that...

Oh, 90%A. 10%B.
49 posted on 01/01/2009 6:17:55 AM PST by Kozak (USA 7/4/1776 to 1/20/2009 Requiescat In Pace)
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To: Elsie
Do you guys actually HAVE the gold in your hot little hands or do you have a piece of paper stating that

A few coins in the bank vault. If I were to buy more, I would go the ETF route.

50 posted on 01/01/2009 6:23:29 AM PST by EVO X
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To: Reaganesque
that begins with someone saying “Psssst!! Buddy!”.

Or "It's totally legit...."

51 posted on 01/01/2009 8:17:26 AM PST by ninonitti
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To: Kozak

You are NOT supposed to answer!

Now you will get tracked down!


52 posted on 01/01/2009 9:20:02 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie

Come and get me copper! (;-0


53 posted on 01/01/2009 9:21:12 AM PST by Kozak (USA 7/4/1776 to 1/20/2009 Requiescat In Pace)
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To: Kozak

Arrgh!

I durn’t want ye copper, Matey - but yer GOLD!!!!


54 posted on 01/01/2009 4:14:46 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie
Do you use one of these matey....


55 posted on 01/02/2009 4:03:36 AM PST by Kozak (USA 7/4/1776 to 1/20/2009 Requiescat In Pace)
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To: Kozak
rRrRrrRrrR!!!!

56 posted on 01/02/2009 5:49:34 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Choose Ye This Day

Schiff is talking about a rough domestic market until at least 2010, and that any quick fixes are going to do more harm than good.
He’s also been talking about gold, international fixed income and Asian markets. I think he is a bit off the mark with the international, because we didn’t see the separation most people expected.

However, if the US economy comes back a bit, international markets will heat up a bit too.


57 posted on 01/03/2009 10:29:34 PM PST by SFC Chromey (We are at war with Islamofascists inside and outside our borders, now ACT LIKE IT!)
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