Budget cuts kept Madoff in business - and who knows who else?

As the full extent of the Madoff scandal becomes clear, one question that repeatedly emerges is how he could execute such an elaborate, outrageous scheme without getting caught. After all, Madoff managed to collect over $60 billion and redistribute large portions of it to various investors, all while making it appear that he was just a very canny observer of the market. In the process, he defrauded numerous intelligent, well-organized people and charities, somehow convincing them that he was completely legitimate.

In retrospect, it's easy to point out that a consistent 10 percent rate of return is almost impossible and should have raised a few flags. However, most of Madoff's customers weren't money men; that, after all, is why they hired him. No matter how prominent they may have been in their chosen fields, they were simply not prepared to effectively evaluate Madoff. For that matter, his credentials as a former NASDAQ Chairman and a businessman with over 40 years of experience seemed to speak for themselves.