A fool and their money

In news that can’t have improved their experience of 2020, it would seem some less than diligent Australians have discovered they’d been “investing” with a female Bernie Madoff.

In the words of Leonard Cohen when he discovered his manager had walked off with much of his wealth, “that can tend to take the shine off your day“.

Whenever one reads of these Ponzi schemes, the depths of gullibility always astound. This one is no exception; statements of investment accounts that were simply the CBA bank logo cut and pasted on to a fake statement and not even the correct number of digits in the bank accounts.

The inference being, none of these “investors” could have ever logged on to their accounts to confirm the balance.

That’s a level of trust bordering on insane.

Speaking of trust, if you believe her husband knew nothing about the fraud, I’ve got a bridge across the river Thames you might like to buy:

You’re not in trouble“. Riiight.

What was the inflight service like on the private jet to the month long holiday in Aspen, Anthony?

Anthony’s professional life seems to consist of not much activity for several years as a “music producer“. The more cynical and cruel amongst you might suspect he’s been spending a lot more time assisting his wife with her “business” than making shitty bleep bleep music.

Anyway, as we start to run out of new content on Netflix and the cinema while the 2020 break in production flows through to us, this case will be a welcome distraction.

See also, the recent arrest of Joe Anderson and Derek Hatton in the UK’s capital of grief and victimhood, Liverpool. Now that’s a Christmas present worth savouring.

Bill’s Opinion

Stupid and mendacious investments will always find willing suckers and, as long as we don’t fall for them, we get to enjoy the schadenfreude.

However, sometimes one just needs to accept the irrationality and embrace the opportunity. After all, a Ponzi scheme still makes money for some of the initial investors.

Which brings us to this prediction; 2021 will see asset bubbles springing up all over the place. All that easy money being hosed at everything that moves will find a home.

Which asset classes do I think are about to take off?

Gold, silver, the NASDAQ, energy stocks and residential property.

We may as well learn to stop worrying and love the bomb.

6 Replies to “A fool and their money”

  1. Ah yes, the elegant simplicity of a Ponzi scheme! The first time I read about this “disappearance” I immediately thought, Ponzi Scheme. What amazes me is that this type of financial fraud can still exist in the age of the internet, however as you say there are always greedy/lazy novice investors just waiting to be separated from their money.

    As a young trainee bean counter one of my first lessons was “if something seems too good to be true, it usually isn’t”, how anyone can expect to make a 30% return on their investment in 2020 really escapes me. Then again, Bernie Maddoff lasted over 20 years doing pretty much the same thing, becoming a Billionare along the way.

    If I found out my investment advisor was taking month long holidays in Aspen I would be closing out my account in a flash!

    1. Welllllll, it’s ok to buy into a Ponzi or a bubble if you know that’s what you’re doing….

      We put 50% of our pension in GDXJ in late March and sold in August, for example.

      Damn, I sound like an immodest version of Bardon now.

  2. Agreed, well done there! I have always been fascinated by Corporate financial fraud (from a purely academic viewpoint I can assure you). I can highly recommend the book “Bad Blood”, about Elizabeth Holmes & Theranos, just breathtaking in the boldness and ruthlessness of the fraud perpetrated.

    Hey, whatever happened to Bardon? I used to enjoy his accounts of his ruthless management style and financial wheeling & dealings!

    1. “Hey, whatever happened to Bardon?”

      Your guess is as good as mine!

      For what it’s worth, I would guess domestic issues compounded by unemployment and losing his shirt in spot buy “investments” in March has forced him to change his internet pseudonym or log off entirely.

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