Although I feel a great deal of sympathy for the investors who lost money investing with Bernard Madoff, I am outraged by their desire for the US Government to pay for their loses. In many cases, they want to be compensated for amounts in excess of the SIPC limits. While their losses are tragic, a bailout for them would signal that there is no risk with investments.
Sadly, fraud is a legitimate investment risk. From the Madoff fraud, we have learned the importance of due diligence, skepticism and diversification. An SIPC bailout would wipe away what we have learned.