The Bernard Madoff scandal has impacted several people and organizations, including banks, charities, and pensions that had invested millions of dollars in his investment fund. The director of the SEC issued an official apology today for not catching on to Madoff, who basically stole billions of dollars from investors via the Ponzi scheme. What has the SEC been doing? They go after people like Martha Stewart and Mark Cuban for one episode each of insider trading, but completely miss the fraudulent undertakings of Madoff that had gone on for YEARS. People went to bed as multi-millionaires and woke up with almost nothing the next day. What an evil, narcissistic, arrogant, repugnant man. I am surprised he hasn't killed himself after the whole rouse was exposed, but it just shows how evil and unapologetic he is. The impact of the Madoff case will go beyond the actual dollars that were lost by the groups and individuals. It will likely cause a ripple effect in terms of confidence of investors around the world, who are going to be less likely to want to invest in the stock market. As if the worst year in stock market history wasn't enough to rattle investor confidence.
In regards to the market, the fed cut interest rates to almost zero today, and the market, for the time being, loved the news and rocketed higher. Importantly, the major averages did break above the 50 day moving averages. We'll see if a "Santa Claus" rally ensues, but, it is STILL as bear market, and one must remain cautious and place stop limits.
BTW, did you see the story about the boy named Adolf Hitler Campbell? Apparently, it was his 3rd birthday and his dad ordered a frosted cake with his name written on it, but the employee at the supermarket refused to do so, and they had to go to the local Walmart to get the cake. While I don't think the supermarket should have done that, what on earth were the parents thinking by naming him Adolf Hitler? The kid is going to receive constant teasing and torture from his classmates. How is he going to get a job? The parents are idiots. Even if they were trying to prove a point (not sure what that point is), it is going to seriously and negatively impact the poor kid's life.
On a lighter note, check out this elephant play the harmonica.