The Wizard of Lies (2017)

Trader's Film Library #82 · Frauds and scandals. De Niro as Madoff: a Ponzi scheme seen from inside the family.

Original title: The Wizard of Lies · Type: TV film · Created by: Barry Levinson (HBO) · Usefulness for traders: ★★★☆☆

What it's about

A dramatised story of Bernard Madoff (Robert De Niro) and his family (Michelle Pfeiffer as his wife Ruth) as the biggest Ponzi scheme in history comes to light. It's based on the book by journalist Diana B. Henriques, who interviewed Madoff in prison.

What it has to do with markets

It's a good complement to the Madoff documentaries: less about the mechanics of the fraud, more about how long a lie can be kept up and the price paid by those close to it. You can also see how trust in a “Wall Street legend” replaced checking the numbers for investors.

Lessons for traders

• results that are too smooth are a warning sign, not a reason for excitement
• trust in a famous name is no substitute for verification (authority bias, Atlas of biases #30)
• a lie in the markets always comes out in the end, and its cost grows over time

What to watch out for

A feature film, with dramatised conversations and family scenes. The facts of the fraud itself are better learned from the documentaries.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.