In the titling tradition of “Marley and Me” (about a dog) and “Roger and Me” (about the economy in Detroit, via the auto industry), I bring you “Madoff and Me.” Not the real me, of course; I am definitely not well-connected enough to have even gotten a chance at one of the feeder funds in the news. I am referring to a Wall Street Journal essay by a college professor, whose area of specialization is gullibility. He has a sister who lives in Boca Raton and was investing in one of the now infamous feeder funds. She got him in.
I am also a teacher and even have relatives who live NEAR Boca Raton. So I have a certain feeling for this fellow. I am not being facetious.
Anyway, in his WSJ essay, he outlines some historical scams (see Mr Dr Frugal Scholar’s related post on this). Then he outlines how he got snookered. Evidently, Madoff’s genius lay, in part, on his promise of good, but not great, returns. He also offered a “history” of absolutely steady returns, with no losses.
This is, in my opinion, a “must-read.”