Madoff investors may have to cough up profits

[Craig234]

With this analogy, I could see the profits being seized and divided among the losers.

I agree.

 

[tk149]

Seems reasonable to me. One effect of this will be that future investors will feel that they have at least some protection against other Ponzi schemes. That, in turn, will help spur future investing, and that's good for everybody.

 

[actuarial]

With this analogy, I could see the profits being seized and divided among the losers.

So if a guy steals your BMW, then sells it for 10K, you're happy getting 10K back instead of your car?

That's what happened here. This guy made his money by stealing 10K from you and giving 5K to someone else. You don't think the 5K should be recovered?

Edit: Actually you may have to clarify your position. Are you talking about Madoff's profits or the profits people made on the (phoney) investment earnings (plus Madoff's profits). If the latter, then I agree.

 

[Blackjack200]

So if a guy steals your BMW, then sells it for 10K, you're happy getting 10K back instead of your car?

That's what happened here. This guy made his money by stealing 10K from you and giving 5K to someone else. You don't think the 5K should be recovered?

10k is better than nothing. The screwed investors have no reasonable claim on the principal of the investors that got out.

Edit for your edit: It's the second one, so we probably agree.

 

[highland145]

So if a guy steals your BMW, then sells it for 10K, you're happy getting 10K back instead of your car?

That's what happened here. This guy made his money by stealing 10K from you and giving 5K to someone else. You don't think the 5K should be recovered?

Craig's analogy was that I would get my BMW back and the buyer would get the shaft for receiving stolen goods.

So I invest 10K, reap 15K when I cash out. The other investors get the shaft when it folds. I should have to give back the 5K profit I "earned."