Madoff Investors May Be Protected By Government

NEW YORK (CBS) ^ | Dec 15, 2008 7:24 pm US/Eastern | John Slattery

[elpadre]

the tax payers must not be bailing out these investors. We reimburse while we go broke.

[Freedom4US]

Better, the scammed must pay back any “gains” in the past few years, under a term “fraudulent conveyence”.

[Boiling Pots]

As it stands now, no tax funds are used for the SIPC

[The_Reader_David]

Maybe what's needed to stop the bailout mania is a "debtor's union". Anyone with say $5K or more in unsecured debt (credit card debt, student loans, other unsecured personal or business loans) would be eligible to join. Then collectively, once the union represents several trillion dollars in debt, the union would demand a bailout, threatening one and all to simultaneously default on their loans. A kind of 'Samson option' for the U.S. economy.

Of course the real point would be for the debtor's union to have a reasonable fallback position, that would include no more bailouts of corporate, labor union, or banking interests unless the debtors' union is bailed out first, and maybe full tax deductibility for all personal interest paid, including under the AMT (or better still, full tax deductibility of interest paid and abolition of the AMT).

[KeyLargo]

Taxpayers to bail out Palm Beach investors.

Judge signs order to protect Madoff investors

20 hours ago

NEW YORK (AP) — A federal judge on Monday threw a lifesaver to investors who may have been duped in one of Wall Street’s biggest alleged frauds, saying they need the protection of a special government reserve fund set up to help investors at failed brokerage firms.

U.S. District Judge Louis L. Stanton ordered that clients of Bernard Madoff’s private investment business seek relief under a federal statute created to rescue cheated investors. Stanton also ordered that business be liquidated under the jurisdiction of a bankruptcy court and named attorney Irvin H. Picard as trustee to oversee that process....

http://www.google.com/hostednews/ap/article/ALeqM5jF_4G4a4XAV7qDQOp8KfWCykIrYQD953FCL82

[Carley]

It is my information, which is probably worthless, that the max amount to be recovered is $500,000

These greedy people got more than their money’s worth from this guy and now they’re whining.

[Fitzy_888]

Bernard Madoff should be tapped as Fed Chairmen.

Hey why not, he seems like a likeable guy and he came clean quickly (well, after the first 18 years or so). It’s not like there’s anything backing all the new money...anyway! The US dollar is becoming more of a Ponzi scheme every day.

QUESTION: You get paid on Wednesday, but there’s a two week lag. How much less will the dollar be worth from the day you earned it to the day you spend it?

ANSWER: Welcome to Mexico, senor!