Savings lost to Madoff, elderly forced back to work | Politics | Reuters
After losing his entire life's savings to disgraced fund manager Bernard Madoff, 90-year-old Ian Thiermann abandoned retirement and now works the aisles of a grocery store to make ends meet.
Thiermann, owner of a pest-control company in Los Angeles before retiring 25 years ago, enjoyed returns of 10 to 12 percent each year on his savings for about 15 years regardless of whether markets rose or fell. He lived on those returns, devoting much time to nonprofit work.
"We don't have any cash reserves now. And we still owe money on our houses," he said in a telephone interview. He learned of his losses while shopping in a local grocery store with his wife, Terry.
I hate to say it but I don't feel sorry for most of these people. You don't put all your eggs in one basket. That is rule #1 with investing.In Pompano Beach, Florida, 73-year-old Irwin Salbe also expects to return to work after losing about 75 percent of his investment portfolio to Madoff, who according to court documents confessed to his sons on December 10 that the firm's investment-advisory business was "basically a giant Ponzi scheme."
"I used to get my income from there. Now, there's no more expensive dinners. I don't hug my kids anymore like I used to," he said. "The image of Madoff's main clientele is of rich people. That's not true. A lot of people have been devastated like me," said Salbe, who had met Madoff several times.
On top of that it is a hedge fund which is supposed to be lightly regulated, as well as being super risky.
Bernard Madoff is liable and so are the people who put their money into it. And his last line is a such a grand damnation of brokerage firms, blaming them all for his dumb investing strategy.After losing money to Madoff, Lawrence Velvel, dean of the Massachusetts School of Law, said both the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority could be held liable for investors' losses.
"The brokerage industry is responsible for this because these are the people that caused all of this," he said.
I understand that these people were scammed and Bernard Madoff should be prosecuted.
Should the U.S. Government protect people from their own ignorance or stupidity?