Why would we expect the Fed to audit Madoff when they won't audit themselves.
On Sat, Feb 20, 2010 at 7:09 PM, Fred Holmes <[email protected]> wrote: > At 05:29 PM 2/20/2010, tjpa wrote: > >Actually I think the term "conservative" has been hijacked by people > >with entirely different interests. They want low taxes and small > >government as a means to achieving their own greedy ends. E.g. they > >want to close down the SEC so they can all become a Madoff. > > Regulators like the SEC will never stop a Bernie Madoff. It's like > expecting the police to intercept the burglar before he enters your home. > Doesn't happen very often. > > Everyone who invested in Bernie Madoff's deal should have known that it was > too good to be true. > > Everyone who invested in Bernie Madoff's deal should have insisted on a > real audit of his books, independent of any government oversight/regulation. > > The only way for government to stop the likes of Madoff would be for it to > perform a real audit of 100% of financial firms. That would cost too much. > You wouldn't want to pay the bill. Simple fact of life. > > With the potential rewards of such a scam, and with the probability of > detection being much less than 100%, there are many folks who would take the > chance. > > Anyone on the board of any charitable organization. How well is the audit > performed. Even a professional auditor only audits something like 10% of a > year's transactions. And the audit is not focused on detecting fraud. The > audit is focused on presenting a financial statement that fairly represents > the true financial status of the organization. > > Fred Holmes > > > ************************************************************************* > ** List info, subscription management, list rules, archives, privacy ** > ** policy, calmness, a member map, and more at http://www.cguys.org/ ** > ************************************************************************* > ************************************************************************* ** List info, subscription management, list rules, archives, privacy ** ** policy, calmness, a member map, and more at http://www.cguys.org/ ** *************************************************************************
