QuoteOriginally posted by: mackbarOne of the really interesting questions is - where is all the money?A big chunk of it was probably disbursed to investors over the years. Another big chunk was probably only accumulated imaginary paper profits. If you gave Madoff $1 million in 1998, he told you it earned 12% (but it didn't), 10 years later you think you've got a balance of $3 million but the $2 million in compounded gains never existed and your original $1 million was paid out to other investors over that decade. And if the scam has been going on for very long (some say it could have started in the 1970s), then good chunks of the money have gone to people that have died, spent the money, or lost the money on subsequent investments. I wonder how many people or hedge funds borrowed money to invest in Madoff or used their Madoff balance as collateral for other deals.
Last edited by Traden4Alpha
on December 19th, 2008, 11:00 pm, edited 1 time in total.