reuters.com/article/newsOne/ … IK20081212
Holy Shit !!!
one of the biggest financial frauds in history… but still dwarfed by the multi trillion dollar fraud that is the global international finance system as a whole.
Ponzi scheme? Biggest ever?
"A Ponzi scheme is a swindle offering unusually high returns, with early investors paid off with money from later investors."
Bigger than the Irish Property Market? Not even close.
Holy shit!!! is about the most apt comment
50 billion fraud…!!!
And he’s owning up to try and get a lighter sentence?
I’m fucking amazed at both the scale of the fraud, and the cander of the perpitrator.
This event is actually setting some deep seated alarm bells ringing in my head. for the last12 months, i’ve been toying with the idea that maybe we are heading for a global depression. I can’t help thinking after reading shit like this that Global economic collapse begining and the 50 year experiment with globalisation is begining to fail.
in a silly way, the worse it gats globally, the better we (Ir) will be.
i think we just might go back 50 yrs and begin growing our own food, which luck would have it, we can, easily.
I’ve just started re-reading George Soros’ Crisis of Global Capitalism (1999, I think) again (not having had the knowledge to get very far the last time). He has a lot to say about the dangers of having a globalised financial system with local oversight. He has a lot to say about supply/demand imbalances. He has a lot to say about ‘market fundamentalism’ (his name for the modern version of laissez-faire capitalism). He has a lot to say about the crises of the late 1990s in emerging markets being a symptom of the problem and not the problem itself. George Soros, take a bow. (I am still only on the introduction, so no doubt my incredulity level will rise as the pitfalls of the current systems are exposed one by one and I can see the catastrophic effect of each one).
The man’s, erm, “honesty” is pretty astounding. About as clear a “it’s a fair cop” as you’ll ever see.
I think this must mean that, yes, it’s a stab at leniency, but I also think it shows total capitulation on his part. He knows that all these financial instruments and metrics are nonsense and trying to even pretend otherwise is like trying to defend alchemy. I suspect that this is the case with a vast, vast, vast amount for what has passed for economic activity over the last 10 years (property included of course).
*'Our sophisticated proprietary automation and unparalleled client service **delivers an enhanced execution *that is virtually unmatched in our industry.’
And so say all of us.
Pretty easy to see why short dated T-Bills now have a negative yield with this kind of crap going on
“$50 billion of fraudulent losses.”
Are they better or worse than real losses?
It seems that other Hedge Funds were willing investors , after all who could imagine that a hedge fund was a Ponzi scheme ?? Amazingly none of our banks or pensions fund have confessed to anything , Yet! , but I fully expect that at least one of them had some funds in here …anything bar a bit of honest work would seem to be the norm in Irish Financial industry circles .
bloomberg.com/apps/news?pid= … refer=home
Chairman of the Nasdaq should ring a bell after 2000
This is as big as the Lehman Chapter 11. There goes the shadow banking system.
For an insider view…
The shadow banking system has been tottering since BS blew up in March when it became obvious that there was going to be a fight to the death between the regulated (sic!) banking system and the shadow system. There was no doubt who was going to win, eventually. Hedgistan could never run to the cental banks for a bail out. It was just a matter of how much collateral damage was done as the shadow system collapsed.
Its less than two week to the closing of the 4Q and Y so my guess the results of the final implosion wont hit till the end of 1Q next year. March 2009 is shaping up to be absolutely brutal. A short sharper version of Sept/Oct 2008.
Tin hats on and start digging that bunker even deeper…
Why is is that a ponzi scheme is never discovered until it is completely out of control?? SOmeone knew this shit a long time ago.
Same goes for the irish property ponzi scheme!!!
oops , still ¬!
OK, something doesn’t add up here - how the hell has the man who ran the biggest ponzi scheme in history now become ‘a person of integrity’?? Obviously Dan Horwitz thinks words can be made to mean whatever you want them to mean, just like numbers on a make-up hedge fund balance sheet!!!
It’s because he’s now a decent honest criminal “Its a fair cop guv”
Boo f%^kin’ hoo, most of the actions by hedgies caused this mess. Merkel wanted to regulate them a year ago and Brown and Bush would have none of it.