SHIP OF FOOLS

A recent article called “Ship of Fools” describes the Madoff scandal and its many facets. The article indicates that the scams are avoidable if one asks the following questions. 1. Who is the auditor? Have you ever heard of them? Do they have other reputable clients? Are they independent of the hedge fund? 2. Who […]

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SYSTEMIC RISK AND BLACK SWANS

“Black Swan” events such as Bernard Madoff Ponzi Schemes, earthquakes, tsunamis, have seemingly conspired to compel us to take our eyes off the “ball”. The ball, in this context, may be Financial Services Regulatory Reform, and Health Care Reform, that all agreed were so necessary. Under normal market, negative events generally occur randomly and most […]

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