How Bernie Madoff Fooled Everyone w/Malcolm Gladwell | Joe Rogan

Some investors did see that Madoff's returns weren't real. But he was an insider at a stock exchange and they figured he was using his position for insider trading. In other words they sensed he was cheating but they thought he was stealing for them not stealing from them. So they were willing to turn a blind eye as long as they got the good returns.

"He didn't even put it in T-Bills" Roe Jogan: did you say DMT bills?

What they didn't mentioned was that Madoff's scam also played on a stronger human characteristic than greed, as well as Malcom says, 'trust'. From what I've heard and read, he was just very good at appealing to his clients by making his 'investment' scheme so exclusive that he actually refused enough people so that if you were really really wealthy and were not accepted by Madoff, it was like being denied a membership into some exclusive country club. People were tripping over themselves to get in because they were used to their money buying everything...

"Once in a lifetime financial meltdown" that aged poorly.

I always thought it was weird that he made off with all those peoples money and his name is Madoff.

He fooled people by preying on their own hubris. He sold "exclusivity." The only way to get your money in was by referral.

I could listen to Malcolm Gladwell tell stories all day.

"How Bernie Madoff Fooled Everyone w/Malcolm Gladwell" -- I never would have imagined these two being in cahoots together.

Reminds me of how people allowed themselves to get swindled by Elizabeth Holmes and Theranos despite the telltale signs that it was a scam from the start

A brilliant talk. This topic on the psychology of deception deserves its own documentary series.

"once in a lifetime financial meltdown".... you sure about that ?

The crazy thing about Madoff is why he did it? The guy built up a legitimate trading business, actually pioneered new ways of trading using tech. He didn't need the scheme, its crazy.

There was a Frontline documentary on Madoff and one of the people they interviewed was one of the first people who worked for Madoff as a salesman. The person talked about receiving his first check from Madoff for some obscene amount of money and he and his wife were sitting at the kitchen table trying to figure out what to do with it. What's interesting is that he decided that it was a "gift from God" (that's the exact quote) and that they were simply blessed to have it, which I think is one of the ways that explains why so many people were willing to either not look too deeply into Madoff or just not bother.

Harry Markopolos caught him but no one listened to him. He started digging into it in 2001, I believe.

This guy taught me more about investing than I’ve ever understood in my 48yrs 😂.

I could listen to Malcolm Gladwell talk all day.

Its cognitive dissonance. People dont want to believe they were fools, and they dont want to believe they're being ripped off. Both are very uncomfortable, and one damages the ego, so our egos lie to ourselves. "I'm a sucker" or "maybe its nothing", one is a much easier pill to swallow.

I gotta say I read malcolms books thought he would be a nerd BUT dude turns out to be such a charismatic fella

Thanks for having Mr. Gladwell on Joe🙌 A very knowledgeable and perceptive guy, I always enjoy his take on things 👍

"Those who live in glass houses should not throw stones" this was a line that was in another Madoff video. People knew what they are doing there is nothing to be shocked or amazing about.