I have been involved in the aftermath of a couple of Ponzi schemes over the years, and it seems to me that none of them actually start as a fraud. They start as an investment that goes bad, and the man at the center simply can't bring himself to admit to his investors that he is losing money. With a foundational belief that he can turn it around, he takes the money from new investors, and continues paying old investors. He doesn't turn it around, and disaster follows.
CNN.com has an interesting background piece on Bernard Madoff. One telling quote - "His weakness was he was incredibly egocentric. He had to feed that ego."
That might sum up the entire Madoff Mess in one sentence.
http://money.cnn.com/2008/12/26/news/companies/understanding_Madoff/index.htm
CNN.com has an interesting background piece on Bernard Madoff. One telling quote - "His weakness was he was incredibly egocentric. He had to feed that ego."
That might sum up the entire Madoff Mess in one sentence.
http://money.cnn.com/2008/12/26/news/companies/understanding_Madoff/index.htm
