But this just opened the door from a lot of lawsuits, just figure, I would an Entire City put all their eggs in one basket? Even if there is no SEC, the money managers are getting paid to check, investigate, check again, research, ask questions. Not say: Here is $1 Billion Dollars, do whatever you want.

I think this is a Big Blow to people that have a lot of money in Hedge Funds, those are the ones that are going to take the biggest hit.

The SEC was warned about Madoff many years ago. It makes you wonder how many scammers are not getting caught. Also, I would argue that it does affect those of us who are involved in normal, public investments like stocks and mutual funds. First, if you’re one of the people who work for the city of Fairfield, and your pension was invested by the state in Madoff’s company, you might lose your pension. Second, huge losses when perpetuated in the media might result in a drop in confidence in the stock market, keeping prices down as people sell or choose not to buy stocks.

It’s great that people who are scamming other people’s money are caught so it wouldn’t affect me or you.