Reply to Jansen’s comment on “Is the Madoff Scandal Paradigmatic?”
In asking Is the Madoff Scandal Paradigmatic? Kevin MacDonald and I put forward reasons for thinking so:
- Ample evidence pointing to the Madoff operation being fraudulent was brought to the attention of the SEC: the failure of that entity to take effective action can most plausibly be explained by fear of the lethal rage the Jewish Establishment was likely to show if an important member was attacked.
- Madoff’s success in raising so much money from so many places was largely a function of the efficiency of networking within the Jewish Community
- Raising and keeping the money was greatly facilitated by extraordinary — even irrational — reverence Madoff came to be accorded: conforming Rabbi/Guru cult pattern seen amongst Jews from the Rabbis of Eastern Europe to the Boas/Anthropology and Freud/Psychology academic circles amongst others.
- Economically the fraud was a huge net transfer of resources from non-Jews to Jews and within the group from less wealthy Jews to an elite.
- That Madoff was not turned in by the numerous Jewish financial sophisticates who had apparently figured out the fraud reflected the shadow cast by the “Mesirah” tradition prohibiting reporting wrong-doing Jews to the Civil Authority: a matter of great significance to non-Jews.
In his thoughtful response Mr. Jansen seems to concede our first point (“I will not argue against…”). From a public policy point of view, this is the most important matter. He ignores the “Guru” and “Mesirah” issues to focus on the distribution of benefits from the fraud. Read more