Keep in mind our post, The Ability to Generate Confidence, as you think about this.
Inspired by a top New York civil attorney:
Either as an individual or a foundation, 12 years ago you invested $10 million with Bernie. In keeping with projected returns, every year for the past 11 years you received a check for $1 million (which you utilized to support various causes) representing your “profit”. You have now had a real return of $11 million on your $10 million investment.
Fast forward to the day last month you will never forget: how much did you loose?
If you were to sue Madoff for damages, quite simply did you actually have any? How much? Or if the appointed court receiver attempts to retreive the received “profit”, what is your potential liability?
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My puny economic mind is having trouble understanding this. Is this saying that people actually didn’t lose their capital, just their perceived profits? If so, it makes sense. But is that really the case?