The Macro Dirt Podcast Talking with Phil Bak of Armada Investors
Mar 13, 2025
Phil Bak, the Founder of Armada Investors and expert in real estate investment, shares compelling insights on market dynamics and valuations. The discussion covers the fallout from Bernie Madoff's Ponzi scheme, revealing accountability issues in finance. Bak dives into the nuances of private versus public REITs, and how economic trends influence valuations. He also reflects on entrepreneurship's realities, contrasting the challenges with romanticized success, and highlights Detroit's cultural revival through its vibrant music scene.
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Bernie Madoff's Ponzi Scheme
- In 2009, Bernie Madoff pleaded guilty to 11 felonies, orchestrating a massive Ponzi scheme.
- This resulted in $65 billion in paper losses and $17.5 billion stolen.
Learning about Madoff
- Phil Bak recalls learning about Madoff's scheme at his bar in 2008.
- He was surprised, having previously done program trading with Madoff, unaware of the hedge fund side.
Lack of Repercussions
- Phil Bak highlights the SEC's inaction despite the Markopolis paper exposing Madoff.
- He draws parallels to his own experience exposing issues with Blackstone's B-REIT fund, which also resulted in no repercussions.