Thursday, September 10, 2009

Bernie Madoff on How Regulators Are Captured

Massachusetts Secretary of State William Galvin has released the transcript of a conversation Bernie Madoff had with an employee of a feeder fund, i.e., a fund that invested its money with Madoff. During the conversation, Madoff explains how regulators are captured:
The guys . . . ask a zillion different questions and we look at them sometimes and we laugh, and we say, 'Are you guys writing a book?'

These guys, they work for five years at the commission then they become a compliance manager at a hedge fund now.
Captured for a compliance job, huh. Which puts into better perspective the reasons behind the Federal Reserve's bulging payroll of economists.

All these guys can be owned pretty easily. Lew Rockwell writes:

Murray Rothbard said, in analyzing another matter, that the typical academic “would run over his grandmother for a conference invitation.”

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