The Emperor's New Clothes might be a parable here.

Anyone, with half a brain, should have doubted Madoff. They may not have figured out what he was doing the way our hero Mr. Markopolous did, but they should have smelled a rat.

If I appear to be talking in cliches, it is on purpose. The language and the culture warned those who chose not to hear.

If, however, the money was funneled through a feeder fund, the failure in due diligence falls both to the feeder fund and those in charge of the not for profit's investments.

Harry Markopolous is a fine man, a hero, and someone to be admired greatly. His letter to the SEC about Madoff is first rate and right on the money. But Mr. Markopolous is not Einstein. Many people believed that Madoff was running some kind of scam. No one, no one can possibly report such consistent returns year after year after year.

The crisis we all face comes, first of all, from greed and then, in many cases, from crimes. But greed is the fuel. And it was greed that forced the "victims" to ignore the obvious red flags.

I read of one "victim" who lost 7 million to Madoff and is wiped out. He was making about 700,000 - 850,00 a year. Had he put his money in basket of municipal bond at 3% tax exempt, he'd have had $210,000 tax free a year. If he wouldn't live on that "pittance," he deserves to starve.

The point is this: MADOFF and HIS "VICTIMS" were simply on different locations on a vector of greed.