Sesame Street Explains Madoff Scandal

If you watch TV, listen to the radio, or read the news, then it’s likely you’ve heard about Bernard Madoff. Madoff’s resume boasts 40+ years of experience as a trader, chairman of the Nasdaq stock market and hedge fund manager. He was well-respected, but for years there were rumors on Wall Street about his hedge fund. The returns were too high, and his operation was slim considering the tens of billions of dollars that were being managed.

Federal prosecutors recently charged Madoff with securities fraud that may have cost investors up to $50 billion. Madoff is accused of operating a giant Ponzi scheme in which money is taken from new investors to pay earlier investors. This could be one of the biggest Wall Street scams ever.

To help explain a ponzi scheme, Ernie and the Cookie Monster break it down into simple terms that anyone can understand, even a child. Check it out.