Kass: Madoff Was Made Up

This blog post originally appeared on RealMoney Silver on Dec. 12 at 8:59 a.m. EST.

While many are suggesting that the failed auto rescue plan is responsible for the dramatic overnight drop in the futures (down by nearly 5%), I believe that the alleged Madoff fraud might be even more responsible for the dire overnight market decline.

If the Madoff story is correct, it is the single biggest financial story of the year. Indeed, it is bigger than Enron or Tyco, bigger than Boesky and far bigger than Bayou.

It attacks at the core of investor confidence, which has already crumbled and remains very fragile. ...