From Crane Collapses to Politics as Unusual: 2008 in Review

The $50 Billion Con Man, December 11: The investing community, already reeling from the economic downturn, was rocked when respected investor Bernard Madoff, a former chairman of Nasdaq, admitted that his investment firm was a sham and that he had actually been running, in his estimation, a $50 billion Ponzi scheme. Hedge funds with investments of billions to moms and pops who had hundreds of thousands in Madoff's firm were hit, as were notable charities, educational institutions, and celebrities. The victims' list keeps growing; one investor, who had $1.4 billion of clients' money invested, killed himself. Madoff, under house arrest, must disclose his assets. Other fallout: The SEC, which was warned about Madoff, faces criticism as do hedge funds that apparently don't do any due diligence yet collect hefty fees. It was a year-end scandal that seemed to capture all insanity of the market bubble.