Josh is right that there's less difference between the Madoff case and the financial sector generally over the past few years than will generally be acknowledged. There are differences, especially in that it was a kind of decentralized Ponzi scheme within and between organizations, and no one person could have stopped it or given up the game. But for years the housing, mortgage, mortgage backed securities, and everyone's favorite, the synthetic MBS, markets all depended on getting new suckers to throw cash into the system. And it wasn't as if nobody noticed.
The question we've been asking for some time is who gets left holding the bag. Unsurprisingly, it'll largely be taxpayers. Apparently we're the ultimate suckers!
