philliesr98 wrote:lethal wrote:philliesr98 wrote:lethal wrote:philliesr98 wrote:Ok, dumb question here.... where did this 50 billion dollars go?
How do you make 50 Billion dollars dissapear?
Granted he might have paid out to some investors, but was this guy the baller of all ballers?
At 70 years old and no conscious, I can only imagine what I'd spend that much money on...
There was never any $50 billion dollars. It was all on paper, mostly fake investment gains.
wait what? People gave this guy real money to invest i assume, not fake money...
The gains is what was fake not the money given to invest...
Right. I haven't seen any reports on what part of the $50B was real money actually invested and what part was fake investment gains. The $50B was the supposed end value of the portfolio when he was caught.
You're familiar with how a Ponzi scheme works, right? Some of the early investors withdrew their money and they were paid using the money from the latter investors. Some of the money went to paying off day to day operations of the outfit and the recruiting budget, some went to lining the pockets of Madorf and his family/employees. Nevertheless, that $50B figure is not a real total of what was lost.
yes I'm familiar with how a ponzi scheme works...
Thing I'm not getting is this, you keep saying how you don't know how much of this 50 billion dollars was real....
I thought the 50 billion number was what was given to him by investors, not the end amount of his portfolio....
Unless what I'm reading is wrong.
Where are you reading that the $50B was given to him to invest and was not supposed end portfolio value? Got some links?
