After all, you only find out who is swimming naked when the tide goes out.
Madoff’s madness (from the Financial Times)
This newest financial fallout on Wall Street just further hurt the bleeding heart of investors who had suffered quite enough losses these days. The abuse of trust and regulation failure in this case is just astonishing. Quite a few commentators said they expect more cases like these to be revealed. Another round of hedge fund redemption can help to put the market into further distress. Financial managers in many cases neglected basic rules such as diversification and transparency.
The basic problem behind this is a flowed reasoning. The world, including the Americans, think that the U.S. is so rich because the Americans must did something right. This reasoning transformed to a belief that the Americans did the right thing so that the U.S. is so rich. Yes, the American way is the right way and the ONLY way. No questions should be asked.
The endowment of natural resources, geographical location and unique history contributed to the wealth of the U.S. as well as many right institutions for some time in history.