Madoff Explained?

I'm not Jewish. I have many Jewish friends. I was speaking with one of them recently regarding two clients I work with. They have the same type of business, similar personalities, and there seems to be an obvious synergy - to use the lame corporate buzzword of 2003. So, I asked, "why don't they just partner?" My friend almost laughed at me. His answer was simple. One of them isn't Jewish. So, I asked for more explanation. In an nutshell, my friend explained that Jewish people tend to only trust other Jews in business dealings because Jews will tell it straight to your face while non-Jews will pretend everything is fine and then stab you in the back. Obviously, not all Jews adhere to this "rule" and it is rife with holes, but my friend explained it is a widely held view.

This may explain why so many people - especially Jews - were ruined by Madoff. They trusted the guy because he was part of the tribe. I guess stereotyping doesn't work too well in the investment world, either.