The product of US deregulation

Bernard L. Madoff, former Nasdaq chairman arrested on 11 Dec 2008 for securities fraud that could total to 50bn dollars. He had been paying the investors with new money that was coming in from new investors, also known as the Ponzi scheme. He kept it going for several years until recently when the US market took a nasty turn for the worse at which point he must have realised he could not keep it up because incoming cash flow was no longer sufficient to sustain the operation. He exposed everything to his son, calling it 'one big lie' and 'basically, a giant Ponzi scheme' before the whole thing had time to implode on itself.