We've only just begun.
...Whatever the real story, it is clear that market makers are accessories to a scheme that is much, much bigger than Madoff.
The key players in this scheme are 20 or so mega-billionaire hedge fund managers, who operate with a supporting cast that includes not just market makers, but also smaller hedge funds, rogue prime brokerages, corrupt lawyers, dishonest journalists, bogus one-man credit rating agencies, dubious index trackers, bribed “experts,” skalawag statisticians, compromised professors, private investigators, crooked financial researchers, captured government regulators, hustlers, felons, thugs and mafiosi.
The mega-billionaires masterminded their scheme in the 1980s, and ever since, they and their progeny have been working together – raiding and destroying public companies for profit. In the rubble of these attacks (there are hundreds of examples) one can almost always find evidence of unrestrained naked short selling (people selling things that they do not possess – phantom stock, phantom bonds, phantom mortgage backed securities, phantom CDOs, all manner of phantom derivatives).
This is the organized exploitation of our national clearing and settlement system – a system that fails utterly to ensure that traders actually deliver that which they have sold. If the SEC and FBI are looking for a “Ponzi scheme” of “epic proportions” – this is it...
Emphatically, this is what they're trying very hard not to look for. If an observant financial outsider like me can spot this, it's not just the 500 lbs gorilla in the room- it's the 500,000 ton Godzilla emerging from the sea, heading towards Wall Street.
There are doubtless some feverish calls going on right now between Treasury and Justice. The CIA too- Madoff is also apparently a big fundraiser and benefactor of the State of Israel. It's likely there's a big National Security lid that's been slapped on this. It remains to be seen exactly how tight the lid will remain.
There's a lot of money to be made in some quarters if the global economy collapses.