Investors put their faith in the likes of Bernard Madoff, and this faith was betrayed! Barnard Madoff (Charles Ponzi 2) has become a real shame considering the current state of things in the financial markets. Today Madoff Type Stock Scams have hurt many people all over the globe.

What a insane lost of some 50 Billion Dollars! This from the same man who was the Chairman of the NASDAQ and a financier second none. Well he just admitted to mastering this Ponzi Stock Scam.

Wallstreet and Mainstreet have been ruined by this kind of corruption! So future stock investors be warned! Because this is a text book lesson and we must learn from these types of scams to avoid this terrible financial lost in our investing years to come.

The ultimate con artist in world history is a one Mr. Charles Ponzi who invented The Ponzi Scheme in the early 20th century. Like Mr Madoff in the 21th century, Ponzi took all the profits from the top of his money pyramid and left little or nothing for the later investors at the bottom of the money pyramid. It is true that some investors did indeed make money with Ponzi and Madoff but most people did not make a penny.

Eventually Ponzi’s entire edifice did collapse. This is precisely what happened when Bernard Madoff orchestrated this corrupt stock scheme. We can learn a few important lessons from this saga, and we had better do so if we want to avoid getting the wool pulled over our eyes again!

Diversify-Diversify-Diversify should be The Golden Rule of investing. Because Madoff Type Stock Scams work so damn well with stock investors who don’t Diversify! By putting all your financial eggs into one basket you may be left holding a basket full of rotten financial eggs! The Post Office’s credo is: If It Looks To Good To Be True It Probably Is! This may be simplistic because there are rare great investments out there and you don’t want to miss them because they look like scams, but when a great investment does come along, it’s time to research-research-research before you put a penny into it!

Absolutely amazing offers are often the sign of a scam. Madoff promised high returns on investments with low risk and plenty of liquidity. He was offering incredibly secure investments with good returns. While solid investments do exist, you are certainly not going to find ones as amazing as what Madoff was offering. These sorts of “Fantastical Guarantees” should let you know that a scam is going on!

First off, if you need help right now because you are a Madoff Victim you can go to: madoff-help.com You should not feel too bad about this, remember Madoff suckerd the best banks savvy brokers and professionals who should have avoided this guy like the plague! Common Sense tells all of us That You Are Taking A Risk When You Invest and on top that The SEC was next to useless in The Madoff Affair?

You can keep from being scamed most times by using good research, but the fact is we all get taken for a ride sometimes. Hedge Funds are very risky as an investment so for the individual investor it would be safer to stay away from them. In this economy today to retain your investment captial or have a better chance of keeping your investment captial at the minimum, stick with much safer Mutual Funds, Bank CD’s, or even Gold. The economy may or may not get better soon, so your saftest course in 2009 may just be to leave most of your money in the bank. (c) 2009 William R. Wiedow Ph.D.