Madoff's a Creep Yes, But.....

Reading the victim's testimonies makes my jaw drop.

Yes of course Madoff deserves what he got and yes of course there really are no words to capture the degree of despicableness. But, there is another critically important question seemingly being completely overlooked. 

How is it that so many people had all of their savings invested with him? I mean hasn't anyone ever heard of diversification? As a student of neuroeconomics and market psychology, I of course know the answer - the fear of missing out - but ... why doesn't anyone else ask this question?

Story after story is about the person on food stamps who lost 2 million dollars. I personally know a grandfather who lost 5 million - his entire net worth. I honestly feel for these people. At the same time, c'mon if it is too good to be true, it is. Period. 

I know this commentary is going to lose any chance I had at winning a media popularity contest but just like blaming the fat cats on Wall Street for the whole credit debacle, where is the role of the individual who takes too much risk?

All your money with Madoff or a mortgage you know you can't afford - at some point, we need to stop blaming the icons and start taking responsibility - at an individual level. We need to get up to speed with our biases and decision processes that allow our perceptions to tell us these things are good ideas. Failing to do only pre-stages the next crisis, fraud and financial disaster.