He Exposed Bernie Madoff 17 Years Before It Collapsed, Nobody Listened
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- Опубликовано: 8 июн 2024
- Thank you to Keeps for sponsoring this video! Head to keeps.com/wallstreetmillennial to get a special offer.
Bernie Madoff ran the largest Ponzi scheme in the history of the world, growing to a shocking $50 billion before it collapsed under its own weight in 2008. As early as 1991, 17 years before the collapse, a mathematician and financier named Edward Thorp found out that Madoff was running a Ponzi scheme. Yet very few people took Thorp's allegations seriously. In this video we tell the shocking story of how Edward Thorp exposed Bernie Madoff and why so few people listened to him until it was too late.
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0:00 - 3:16 Intro
3:17 - 6:11 The rise of Madoff
6:12 - 10:00 Feeder funds
10:01 - 13:04 Canary in the coal mine
13:05 Madoff exposed 
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Thank you to Keeps for sponsoring this video! Head to keeps.com/wallstreetmillennial to get a special offer.
That was such a low blow ads but since you used Madoff it's even funnier
Where are the sources?
The man was convicted and then passed away. Let it go.
@@ariavachier-lagravech.6910hilarious segue ngl
The sponsor transition killed me
craziest thing to me is that only 5 people went to prison along with Madoff. So supposedly he ran the whole scheme with only the help from 5 people, and none of the "feeder fund" folks got in trouble for selling a fraudulent product.
That was always surprising
The time was 2008. The whole american financial system was a fraud.
it is plausible only 5 knew.the inside scheme and the reason it lasted so long. The more people involved the more likely a scam implodes quicker.
Is that really surprising tho? How many people went to jail because of GFC?
Well, it's telling that Madoff's two sons didn't know there was a Ponzi scheme.
Having worked extensively with McKinsey, I would have to disagree with the “smartest in the room” comment. They are far from it.
100% true
This video is a marketing ploy by McKinsey….
They tell management what they want to hear, to give them an excuse to do what they want to do.
Jeff Skilling is proof of that.
sounded more like a reference to Enron
CEOs hire management consultants when they know the answer but they don't want to act on it. The consultants are paid to take the blame.
Step 1: there is no problem.
Step 2: there is a problem but nothing should be done.
Step 3: something should be done but what?
Step 4: something should have been done but it's too late now.
Legendary segue into the ad spot
The bald can never be trusted. They can’t even keep hair on their heads.
🥶☠️
Bro. Straight fire 🔥
… like the head my little sister will provide to you. Her done is fire 🔥 too. My little sister? She’s a professional peenuz twister.
No be lie!
Great ad placement lol😂
That was out of pocket lol
Hate the ad, I’m dealing with my own hair recession so don’t need to be reminded.
Crazy that Veritasium just did a video featuring Edward Thorp and his equations, and now here I am again on that subject!
Almost like that dude paid for astroturfing.....
What a coincidence
@@Klatchan or RUclipsrs copying each other's ideas
@@tomlxyzWhen a McKinsey dude starts getting good press I get suspicious. That's how we got Secretary Mayor Pete.
@@tomlxyz Yes, but it is Synchronicity for him!
"It was proven that the trades they claimed were not happening as described."
Tether: "Is that a bad thing?"
The ad is crazy 😭
That sponsor transition was crazy
Theres a great book called When McKinsey comes to town, which deals with the actual ramifications of engaging these supposed galaxy brains.
hahahaha I loved the way you introduced the sponsor
Thorp quietly told his friend to withdraw their money quietly and fast as they can. The client had issues with SEC themselves ao, they didn't blow the whistle on Madoff. In hindsight, they should have let SEC know anonymously.
Not 1 single customer verified the trades. And the 2 people who looked at them realized there was nothing there.
Everyone is happy when they think they are making %10 gains every single year. =/
You have to consider that when he started the scheme he was a well respected person with a legitimate history, not some random person starting a scam.
@@tomlxyzregardless please should always verify things. Even a billionaire has to prove his net worth to a bank before they lend him money.
did anyone actually lose money after picard distributions?
I have seen this many times in my career. Everyone knows or suspects the emperor has no clothes, but nobody wants the money train to stop, so they just go along to get along and help to get anyone who speaks out.
Madoff knew the people will have him and his families 6ft under, that is why he gave himself up and say that confess to his sons, that is a lie, his sons and families both know, that is why one of them is gone and the other one is in jail. When he messed with the big money they can hire people to take him out, so he has to confess to go to jail, the biggest investor was the new york mets owner, they had to sell the mets to another no good guy that own it now.
I don't know if your entire comment is a lie, but without even looking it up... One of Madoff's sons killed himself in 2010. The other is dead from cancer. Neither is in jail. Madoff reportedly did confess his fraud to his sons, and they turned him thru their attorney. There is no law enforcement organization that disagrees with this.
That sponsor segue was too smooth :D
I had never heard this part of the Madoff saga before! I don't even know how I found your channel, I'm roo broke to invest and I had no prior interest in or knowledge of the world of finance, but I am fascinated by frauds, conmen, and the psychological and sociological aspects of wealth and capitalism.
Your videos are always so interesting, and easy to follow for a layperson. Thank you!
Shit will always happen when lawyers are heading S.E.C.
It is technically law enforcement
@@samsonsoturian6013
It's civil regulatory
FBI is law enforcement
2:00 He hit the nail right on the head with that add transition.
I heard he had a secret floor of employees that created the fake account statements. But what did the rest of the employees do all day? They sure weren't trading stocks.
Didn't he also run his regular & legitimate company at the same time?
@@snooganslestat2030 It did say in the video he was running that market making company which was legitimate but the rest of his business was a fraud.
It was part of the same company that did legitimate business so all those others did actually trade stock all day (a big part of the company was being a market maker)
🤯 I was expecting a re-packaged Harry Markopolos video; I should have known better. This is Wall Street Millennial after all. 💯
Crazy how blatent it was yet people just ignored it since they were "making money" greed is not good
What a smooth add transition 🤣🤣🤣🤣🤣🤣🤣
Lol I liked it I can't lie 😂
Ed Thorp was a very high level academic. He coauthored some papers with the legendary Claude Shannon.
Edward O Thorpe wrote an absolutely legendary book on blackjack.
I'm guessing from the title this is about Harry Markopolos.
EDIT: Oh, Edward Thorp, the math genius who wrote about how to gamble and actually win at casinos.
Harry Markopolos exposed Madoff in 2000, there's someone else who exposed him all the way back in 1991
@@wallstreetmillennialYeah, Thorp, who was the author of those gambling books using math.
@@jonahfalcon1970You wonder if Thorp and Harry got the last laugh.
@@theodorehsu5023 I wonder even more if both of them had consulted with each other in the first place.
@crimcrusader8459 No. Thorp was only advising investors. He was not doing it to whistle-blow to the SEC. Markopolis did use Thorp as additional evidence, tho.
Madoff never got caught. The SEC Ignored the accusations and it was Madoff who turned himself in to his sons who in turn turned their dad in.
As long as individuals/institutions are benefiting from a crime, there will be willful ignorance.
Markopolis wrote a great book on his findings. Worth the read.
omg! Parleys the biggest ponzi scheme ever to hawk baldness cream. Nice work. I love ya for it! Kudos.
Ed Thorp the GOAT
The ad intro lmaaaaao
Bernie sure Madeoff with all the money.
Where we have heard that one before?
@@samsonsoturian6013 Idk man, I'm sure tons of people though the same thing.
That baldness segue was so suave linus tech tips are envious
Whatever room Dr. Thorp is in, you can be pretty sure he's the smartest guy in it. It also should be mentioned that Markopolos' star is not shining so brightly. His August, 2019 call on GE has not come to fruition. It was at around $55/share when he called it "a bigger fraud than Enron." It closed today at $158.65.
"It closed today at $158.65" Yeah? So? That does not mean GE is not a bigger fraud than Enron.
You really are stupid if you think a stock market price says anything about TRUTH.
He was (allegedly) paid by some hedge fund for the GE scam report
@@ProfAzimov that's the sensible explanation. no one, and I mean no one, would actually say GE will go to zero, or even 10, with such velocity.
Dr Thorp isn't that smart. He should have realized nobody is interested in the truth and not wasted his time on it. It was an obvious scam. People wanted to believe in it.
@vanesslifeygo keep in mind it's been decades since GE was a normal business and at any given time it has different goals/strategies, few of those relating to production of goods. So we have little way of telling if or why they stay stable.
awesome video this reminds me of linus. keep it up
Most unhinged sponsorship segway😂😂😂😂 love it
Some people want to believe and add in a Big pile of greed
I always wonder why SEC could not catch him?
They could have if they weren't so lazy.
@@althunder4269shut up. Get drafted
IDK, they get a lot of complaints from people blaming brokers for their own terrible trades. They file hundreds of lawsuits a year, that's all we know
a) They chose not to look.
b) Madoff aggressively ingratiated himself with the rich and powerful, both by taking money from them and making generous charitable donations. Being seen to scrutinise Madoff in any way was career suicide in the late 90s and early 00s.
Respect the ad read lol
Did Madoff's sons really turn him in, or did Madoff plan years in advance to make himself the fall guy for the family racket?
Only someone who has done ZERO research would ask such a question. Watch some documentaries on him.
@lerm4676 you clearly haven't. You really think his kids turned him in?
that ad was too well placed🤣
If I could be Bernie Madof and live his life I 100% absolutely would. Rich people problems are like a fantasy…
Right. I heard some people think he was scamming even back in 1980 or earlier. LOL A good 28 year run. I bet he would have lasted another 10 years if 2008 crash wasn't so bad.
My understanding is that it was a constant struggle to bring in new money and pay out old investors as his situation got more and more impossible to get out of. If the returns stopped flowing enough people would want out that it would sink him, but there was no chance he could ever unwind the thing. It must have been like living on credit cards indefinitely, but if you miss a minimum payment you go to prison for life.
I also suffer from male pattern baldness
I suffer from male moral baldness, just like Madoff.
I signed up for the website and paid. How do i join the paid discord?
Greed is always the magic ingredient.
The moral of the story is that none of this would have happened had Maddoff addressed his pattern baldness earlier. Billions would have been saved.
Less add breaks on cable news lol
So cable news has 0 ads breaks, then?
@@noahthenormal Predictive ads I suppose sir, but I got 3 in first 5 mins not including the built in ad lol.....not Millennial's fault was just pointing it out !!
Not only was he operating a black box, it was a double secret black box.
I just finished Edward Thorp’s book “A Man For All Markets” it is excellent there is so much in it explained so clearly by such an honest clever man.
13:24 17 years and then another 8 years from exposed to end= people definitely knew and were slowly pulling out
More then anything else I'll remember he suffered from male pattern baldness 👌😂
If the regulators are able to turn such a blind eye to someone stealing from the rich, imagine what they allow when the victims are the poor...
F*ck it comes with a 'baldness cure' as a sponsor. Surprised Bernie didn't get into that racket.
many companies listed on the stock market lose money, is that considered a scam, or the way of doing business?
More than likely he wasn't alone someone was helping and got very good money for Madeoffs protection
The American financial system is a casino in which the house (0.1%) always win
Oh man!!!! Completely SHAMELESS!!!! Legend indeed. Why doesnt he give investment advice while he's at it??
After Madoff, they also discovered how Jack Welch ruined GE.
Finance world boasts about Genius mathematicians, fin wizards but not one mf realized that his last name is literally "made off". That should've been a red flag from the get go
Madoff, Musk, Milton... there will be more.
17 years ...that standard everyone is a guru
Notification Squaaaaad
Do tune in for more "wise after the event" commentary folks.
You still buying upstart?
Evil.
Slow day at the office?
Can we not do the keeps ads?
Why? You feel bad about balding? Lol its ok bro
We all know why Madoff was able to do what he did as long as he did, he had that plot armor. You know the one.
Wasn’t this firm exposed on Oliver show?! 😂
Guess you need gambler to expose the gambler.
The message of this video is that you can be a swindler but not a bald man
Whenever you do a D. Trump video, endorse a tanning bed company 👍 better yet, an orange juice company 🔥🔥
Money is the root of all evil. He lost everything with this perpetual lie. Family included. One of his sons committed suicide because of this. An absolute embarrassment to anyone who knew him.
I turned it off at the male pattern baldness. That was a pathetic set up.
Bernie Madoff with your money 😂
Crypto is back in full force. I’m not here to judge anyone but at some point we are 100% going to see a larger Luna and FTX. We continue to see tens of millions hacked weekly and this will soon become billions in the coming months.
At what point does the societal cost of unchecked innovation become too big to bear?
What a segway to the Keeps ad!!
"In addition to being one of the biggest fraudsters of all time, Bernie Madoff also suffered from male pattern baldness." 🤣🤣🤣
RIP Bernie
MY GRANDPA DIED 15 YEARS AGO, NOBODY GAVE A SHIT
Feeder funds. 🤡
he was a crook
So you expose a scam and then advertise for a scam? If there was a product that kept your hair from falling out then why are there bald people in the world? Duh, it's obviously a scam.
Duh obviously not everyone uses it. Not everyone has heard of it. Not everyone has access to it. Not everyone wants to use it.
Well, we cant ignore the likelihood that some people also probably dont care that they're losing hair and are not doing anything to try and prevent it.
Im not saying this works as advertised, but am pointing out that "then why are there bald people?" Isn't much in the way of evidence.
Also, if its a chemical process, not everyone will respond to it the same way or even respond at all.
I think it is not a scam, if you look closely at the product it says "thickening shampoo" and "thickening conditioner". This is no different from your regular shampoo brands like Head & Shoulders and Dove, they have the same product line. So you can buy this product from them, or you can order it from the advertised company - Keeps. The results will likely be the same
If that's the case then I'll withdraw the "scam" comment but it's still misleading. The first person to actually patent a cure to baldness will have more money than Elon Musk and all of my bald friends will suddenly have hair. That's all I'm saying.@@2NormalHuman
Show me a bald person that doesn't care about hair loss and I'll show you a morbidly obese person that doesn't care about being fat or a paralyzed person that doesn't care about walking but first we have to find one of these imaginary people. They care. Trust me, they care. @@justinweber4977
It was easy for a lot of ppl to stay ignorant cuz they were making boatloads of cash. ,
Treating your pathetic hair line insecurity has never been easier than with Keeps.
Bernie Bernie Bernie Vote for Bernie Madoff for president of the prisoner gang 🤣
No english?😮
❤👍👌👏😮😮😮🤩😁😅
Here first
“In addition to being one of the biggest fraudsters of all time, Madoff also suffered from male patter baldness” has to be one of the most awkward ad segue ever.
First
You're 17 years to late ....
😂 this channel is dead