Ponzi pennies

Bernie Madoff’s effort to sneak $1m-plus of jewellery to family members suggests he has a few assets. But those insignificant trinkets won’t help investors hit by his alleged $50bn fraud. Even long-term, they shouldn’t expect to recoup much – a few pennies on the dollar at most. Investor exposures, as disclosed in news reports, are mounting towards the huge figure Madoff is supposed to have confessed to his sons. The problem is, most of the money probably never existed. Suppose Madoff began in 1...