Forum Post: CNBC is -NOT- Reporting clients running out of the markets entirely because they do not believe their customer funds are safe, as was CLAIMED by Karl Denninger's Market-Ticker
Posted 12 years ago on Nov. 23, 2011, 9:29 a.m. EST by MonetizingDiscontent
(1257)
This content is user submitted and not an official statement
Yesterday I posted an article from Market-Ticker that turned out to be a complete rumor. A couple of people here, commonsense11, and alouis brought to my wavering attention that there were no CNBC links on the net. Anywhere.
The Market Ticker is claiming that CNBC has reported that "clients are running out of the markets entirely because they do not believe their customers funds are safe."
Although I'm a little embarrassed for falling for it, the fact that a financial blog out there like Market-Ticker's Karl Denninger, who's name is fairly well known, would make such a claim about CNBC with nothing to stand on, is as irresponsible as I was to post it here, without vetting the story first.
http://www.321gold.com/editorials/denninger/denninger112211.html
http://market-ticker.org/akcs-www?post=197878&page=1
http://www.silverbearcafe.com/private/11.11/itsover.html
http://www.benzinga.com/personal-finance/financial-advisors/11/11/2143003/here-you-go-its-over
http://www.silvermarketnewsonline.com/
http://www.pacificrimcoins.com/pacrim/content/here-you-go-its-over
...Are all linking to the story, to name a few...
Anyway just want to clear it up, because I noticed a few other folks noting the same article in their posts on this site too. I hate to think any of them found that article here, through my post yesterday.
commonsense11 and alouis are wise to always seek a second source to corroborate anything they read or hear in the financial news. Any and all financial news. But especially the gold bud news services. They thrive on arbitraging movements in the metals so inciting movements is their business.
Even CNBC has a tendency in the early morning to run a headline on their news ticker for a few minutes and then have it disappear and the on;y answer is that they are simply publishing the rumor until it is debunked.
A lot of these subscriber columnists will take a small truth and exaggerate it to punch up subscriptions.
The lesson is to always seek a second source on anything you come across in the financial media.
Well now CNBC IS talking bank run-- in Europe and having nothing directly to do with Mr. Corzine, former head of goldman Sachs, former Senator from New Jersey, former Governor of New Jersey, close friend of the president) forgetting where he put those few hundreds of millions of dollars his clients trusted him with.
http://www.cnbc.com/id/45417735
I am sure they are well aware of the true leverage behind this collapse but have yet to find a way to profit from it the way they did with synthetic collaterilzed debt obligations during the subprime meltdown. If people knew of the systemic risk associated with this collapse all hell would break loose. No one has yet to be arrested for any of this corruption. Oh, Jon Corzine was the former ceo of Goldman Sachs, now it is all starting to make sense.
Oh, yes they did report something to that effect that. Denninger was paraphrasing and not quoting. I agree with him and people are in fact exiting the markets "entirely because they do not believe their customers funds are safe." The below quote form CNBC seems note this fact as well. At the time they were explaining the huge sell off in the market and then this was said: "The biggest impact of MF Global is the long-term effect on investor confidence, which no one should underestimate, Kaminsky said. "When you cannot get access to your money, when you're frozen from getting to your account—if you have t-bills or some form of cash equivalent—that is the most significant and dangerous thing for anybody that knows how it is working with clients, whether institutional or retail," he said.
Here's the link and it appears CNBC did not archive it after looking through their website.. http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/9744155/cnbcs-kaminsky-goes-off-mf-global-is-having-a-devastating-impact-on-psychology
Hey nice link thanks for that... Yeah, this MF Global situation has Huge implications for anyone inside or tied to the entire options and futures market. CNBC just simply did not archive it on their website? You heard those words? huh... well, If that's true it probably wouldn't surprise me much, after all 'its just another BUYING opportunity' right? Or perhaps they cant afford the RAM to archive it all... http://www.nypost.com/p/pagesix/cash_crunch_at_cnbc_dqoRJ3vCLMAD6BPUVQqEYJ
lol
...But check this out, I've been waiting for the CME to step in to save the day. Only because of this:
In this video, CME Executive Chairman Terrence Duffy... (link below) ...holds a press conference (last year) in which he clearly states that no “customer has ever lost a penny as a result of a clearing member default that CME Group.”
Duffy admitted that CME is the “guarantor of every transaction that happens in our markets." (and) "We have to guarantee the performance of each and every one of these contracts.” He says they have 100 BILLION to do that!
Duffy admitted that CME is the “guarantor of every transaction that happens in our markets." (and) "We have to guarantee the performance of each and every one of these contracts.” and goes on to say that "To do this, we hold more than 100 BILLION in collateral, to support the contracts that are being done on our markets"
MF Globals shortfall in client funds is 'only' 1.2 Billion. soo, where is that 100 Billion in collateral now?
:::::Terrence Duffy's Introduction at CME Group Press Conferecne with Mayor Daley:::::
http://www.youtube.com/watch?v=m3XpfPXxjbw&feature=player_embedded
so... what was that. a lie? is it fraud? a broken contract? what is it.
Also, in that video, the CME boss claimed that the futures and options markets provide “a place of shelter for the most damaging parts of the economic crisis” and “function flawlessly, providing liquidity, transparency and central counterparty clearing services that continue to work throughout the crisis
...Then there's this, of course...
"The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
::::::::BCM Has Ceased Operations:::::::: (source) http://barnhardt.biz/
....Now factor in a zillion other things like, the MF Global trustee saying the commingling shortfall could be double previous estimates, and that it could reach "$1.2 Billion Or More... http://www.zerohedge.com/news/mf-global-trustee-says-commingling-shortfall-may-be-double-previous-estimate-could-reach-12-bil ...plus considering its been 3 weeks now and the money is still who knows where... (JP Morgan? bcz thats what MF Global claimed, JP Morgan denies it of course) not to mention that MF Global's clients still have 3 Billion stuck... http://ca.news.yahoo.com/insight-anger-mounts-mf-global-clients-see-3bln-190836206.html ...etc etc etc... and you have a ripe environment for a serious flight away from moneymarkets, futures etc... Im surprised there HASN'T been a run already, actually.
Investment banks need to be kept AWAY from dumping their losses on to taxpayer-backed commercial (lending) banks.
Really I heard someone say that on CNBC the other day ---------it was just a comment and I can't remember who said it. I think it was based on the anemic volume.
I am glad you did.
thanks =) ..me too..
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