eyes on the U.S.
April 11, 2012
GENEVA - "To be beautiful, transgression has to be excessive," French philosopher Jean-Bertrand Pontalis once wrote.
This would then probably apply to Bernard Madoff's fraud, a massive Ponzi scheme that defrauded thousands of investors of an estimated $50 billon.
But before he became the biggest scam artist of the century, Madoff had lawfully built a considerable fortune, which helped defuse any potential investor distrust. When the fraud began in the 1990s, Madoff was not a desperate outsider: His wealth was well established and so was his reputation. In the world of finance, he was already an influential man.
During the second part of his career, running his asset management business, Madoff remained vague on his modus operandi (this very haziness actually added to his fame, as his clients thought he wanted to protect his magic formula). He promised his clients big but not unrealistic returns, and above all, he promised total security – zero risk. His stroke of genius consisted in relying on the investors' greed, while at the same time making them believe in a world where people earn money in their sleep: Whether the markets went up or down, you were still supposed to get your 10%. It was a utopia, a day with no night, a never-ending summer, a volatility-free market.
But three elements threatened Madoff's system: crisis, controls, and time.
In the middle of the 2008 subprime mortgage crisis, many investors asked to withdraw their funds, which meant Madoff faced $7 billion in requested returns. But the funds had disappeared, and Madoff was forced to tell the truth.
Meanwhile, controls performed by the Securities and Exchange Commission (SEC) had the opposite effect: Conducted by lawyers and not by traders, the eight investigations Madoff was submitted to did not uncover the massive fraud. As baffling as it sounds, their findings reassured the financier's investors and strengthened his credibility. Instead of uncovering the fraud, they made it worse.
The last threat, time, is the most interesting. Madoff's aforementioned system required more and more money to be lent faster and faster so as to pay the investors back -- but this obviously couldn't last forever. In other words, Madoff knew from the beginning that he would end up in jail, which gives his whole scheme a suicidal tone. Madoff was in the position of an immensely rich man engaged in a scam that was, sooner or later, doomed to fail. As Freud would say, Madoff had gone beyond the pleasure principle and into the death drive.
On December 11, 2008, his two sons Mark and Andrew – neither of whom involved in the fraud -- were the ones who turned him in.
Mark could have chosen to hate his father, like Andrew did, or to stab his own eyes out, like Oedipus. He wound up hanging himself -- with his dog's leash.
As for Bernie, a letter that was later made public revealed that he was happy in the clink.
He declared that being arrested came as a relief. Living a lie was a constant source of anxiety for him. So the concrete prison replaced the mental prison that was Madoff's secret. "It was a nightmare for me," he told investigators. He confessed he had been under "unbearable" pressure for 16 years, and wished it had all ended sooner. He now lives without the burden of fear, without the burden of hope, at peace.
Besides, being locked away freed him from another source of anxiety: choice. When you're in prison, bets are closed, somebody else gets to decide for you. Madoff described how heavenly it was for him to live a life of passive contemplation, vita contemplativa: "I lived the past 20 years of my life in fear. Now I have no fear because I'm no longer in control," he confessed during an interview with ABC's Barbara Walters.
He also enjoys the penitentiary's security: "It's much safer here than on the streets of New York." He compared the federal prison where he was sent to in Butner, North Carolina, to "a college campus, with pretty lawns and trees."
Still a celebrity
Inmate #61727-054 wasn't bullied nor did he suffer from anonymity. Instead, he was welcomed to the penitentiary as a celebrity (who refuses to sign the autographs he is hounded for), and benefits from the respect and consideration of both convicts and guards. "I am doing O.K. ... Everyone treats me with respect." He said he had "loads of friends'. K.C. White, a former bank robber and the prison's artist-in-residence, even sketched his portrait.
These comments outraged Mark's widow. She would have rather seen her father-in-law rot away, forever tormented by regrets. She's not the only one Madoff's declarations have upset: The former stockbroker once compared government aid, like pension systems, to a giant scam, doomed to fail. "The whole State is a Ponzi scheme," he even declared.
But back to Madoff's career. In 1992, 16 years before the truth emerged, there was still time to make things right and get out of the trap that he himself had set. "I spend a lot of time thinking about it …. I try to piece it together; why didn't I say, ‘I cannot do it?" Why didn't I return the money … and admit, ‘I can't do it." Why?"
Madoff asked to meet with a psychologist once a week. "Everybody on the outside says I am a sociopath," Madoff is reported to have told her one day. "Am I?"
To which she replied: "Of course not. You have morals. You have remorse." We only have the journalist's word for it. Cunning as a fox and always ready to play the victim, Madoff likes to put on a show.
Fleeced by Madoff, author, activist and Holocaust survivor Elie Wiesel recalled an extraordinary evening he spent with the fraudster...talking about ethics. Later, Wiesel would publicly curse Madoff, calling him "the crookest of crooks." Wiesel, a Nobel Peace Prize laureate, conjured what he thought would be the most brutal punishment: "I would like him to be in a solitary cell with a screen. And on that screen, for at least five years of his life, every day and every night there should be pictures of his victims, one after the other after the other, always saying ‘Look, look what you have done to this poor lady, look what you have done to this child, look what you have done.""
But far from rotting in the special hell Wiesel had devised for him, Madoff seems happy to be in prison. How can that be, how can one enjoy such an existence? Is there such thing as claustrophilia? Can psychoanalysis explain it? Otto Rank, the Austrian author of The Trauma of Birth, explained that beyond its mere expiatory side, being shut off from the outside world can sometimes lead to wellbeing. A monk for instance, alone in his cell, can experience a passive state similar to the blissful time in his mother's womb, far from the torments of time and human desires.
Besides, countless authors have praised the benefits of a life behind bars. The imaginary motif of a happily cloistered life is a recurring element in novels or poems (Stendhal, Baudelaire, Genet, and others).
As of today, Madoff works for 14 cents an hour. He does maintenance in the refectory. He's looking for another job: He asked to be responsible for managing the budget of his fellow inmates. His request has so far been denied.
Read more from Le Temps in French
*Vartzbed is a psychologist and author of "Comment Woody Allen peut changer votre vie" (How Woody Allen Can Change Your Life)
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With loans and solar panels from China, the massive solar park has been opened a year and is already powering the surrounding areas. Now the Chinese supplier is pushing for an expansion.
October 18, 2021
CAUCHARI — Driving across the border with Chile into the northwest Argentine department of Susques, you may spot what looks like a black mass in the distance. Arriving at a 4,000-meter altitude in the municipality of Cauchari, what comes into view instead is an assembly of 960,000 solar panels. It is the world's highest photovoltaic (PV) park, which is also the second biggest solar energy facility in Latin America, after Mexico's Aguascalientes plant.
Spread over 800 hectares in an arid landscape, the Cauchari park has been operating for a year, and has so far turned sunshine into 315 megawatts of electricity, enough to power the local provincial capital of Jujuy through the national grid.
It has also generated some $50 million for the province, which Governor Gerardo Morales has allocated to building 239 schools.
Abundant sunshine, low temperatures
The physicist Martín Albornoz says Cauchari, which means "link to the sun," is exposed to the best solar radiation anywhere. The area has 260 days of sunshine, with no smog and relatively low temperatures, which helps keep the panels in optimal conditions.
Its construction began with a loan of more than $331 million from China's Eximbank, which allowed the purchase of panels made in Shanghai. They arrived in Buenos Aires in 2,500 containers and were later trucked a considerable distance to the site in Cauchari . This was a titanic project that required 1,200 builders and 10-ton cranes, but will save some 780,000 tons of CO2 emissions a year.
It is now run by 60 technicians. Its panels, with a 25-year guarantee, follow the sun's path and are cleaned twice a year. The plant is expected to have a service life of 40 years. Its choice of location was based on power lines traced in the 1990s to export power to Chile, now fed by the park.
Chinese engineers working in an office at the Cauchari park
Chinese want to expand
The plant belongs to the public-sector firm Jemse (Jujuy Energía y Minería), created in 2011 by the province's then governor Eduardo Fellner. Jemse's president, Felipe Albornoz, says that once Chinese credits are repaid in 20 years, Cauchari will earn the province $600 million.
The Argentine Energy ministry must now decide on the park's proposed expansion. The Chinese would pay in $200 million, which will help install 400,000 additional panels and generate enough power for the entire province of Jujuy.
The park's CEO, Guillermo Hoerth, observes that state policies are key to turning Jujuy into a green province. "We must change the production model. The world is rapidly cutting fossil fuel emissions. This is a great opportunity," Hoerth says.
The province's energy chief, Mario Pizarro, says in turn that Susques and three other provincial districts are already self-sufficient with clean energy, and three other districts would soon follow.
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