Comment by ben_w
2 years ago
Nonetheless Madoff was caught, convicted, sent to prison, and died there.
Regulations sure aren't perfect, but that doesn't mean they don't exist or have no effect.
2 years ago
Nonetheless Madoff was caught, convicted, sent to prison, and died there.
Regulations sure aren't perfect, but that doesn't mean they don't exist or have no effect.
In this case they do create moral hazards though. The regulation means investors are less likely to consider a ponzi scheme as an outcome of their investment, so they don't conduct due diligence as thoroughly.
The original Ponzi was brought down by the free markets: a journalist caught wind of unbelievable returns and tracked down why.