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Forum Post: "MF Global: Was It A Hit?"

Posted 12 years ago on Nov. 18, 2011, 6:06 p.m. EST by MonetizingDiscontent (1257)
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MF Global: Was It A Hit?


By Lawrence Lepard - 11/18/2011

Imagine you are Ben Bernanke, or on the Board of Governors of the Federal Reserve. The time frame is July and August of 2011 and the price of gold is on a tear. Commodities inflation has been persistent and is breaking out everywhere. Your prediction that inflation “is contained” and is a “temporary phenomena” are beginning to look absurd. What do you do?

Simple. Hint that QE3, the primary drive of inflation, is coming and then fail to deliver at the September FOMC meeting. That takes care of the price of gold and the gold stocks. Ah, but those pesky commodities speculators keep making money and trading against what you want the markets to do. So what is to be done there? Hey Jon Corzine, how about you tank the largest broker for the small commodities punters in the world, and we let them twist in the wind? That will serve them right. Teach them to bet against the government approved scenario.

Think it did not happen? Well think again. All of the pieces fit. It sure is convenient that all those commodities speculators are now out of the box. Also, who will want to speculate on commodities in the future given customer funds are no longer protected. Furthermore, commodities speculators are not a very “All American” group. From the authorities point of view they can say: screw them, who will feel sympathy? Hell, James Bullard, Fed Governor, in an interview on CNBC yesterday said the MF Global collapse proves that the system works. Yes it does Jim, for you. Personally, I have $90,000 at MF Global and I would like to have my honestly earned money returned. Unfortunately, the odds of that happening any time soon seem slim. In part because when MF Global entered bankruptcy the judge appointed a Trustee whose law firm has done substantial work for JP Morgan, a deeply interested party. We will probably never find out what happened here. But for those of us whose eyes are open the results speak for themselves.

This whole mess stinks to high heaven. I am with Gerald Celente, if the largest commodity broker in America can go bankrupt and nothing is done, then where can you put your money and expect it to be safe? I, for one, do not accept that Jon Corzine is stupid enough to lever up MF Global 40:1 and use the proceeds and customer money to bet on European sovereign debt. This was a hit, pure and simple. That is why there is no resolution to the problem, and it is just another example of the deeply corrupt US political/financial axis. It may take money away from a bunch of commodities speculators, and it may cool down the perceived inflation, but it is just another hole in the dike which is The US Financial System. A dike whose life can probably now be measured in months, not years.



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[-] 1 points by ZenDogTroll (13032) from South Burlington, VT 12 years ago

I'm sorry if you lost money speculating on the future of necessities like food and fuel.

Personally I think the entire speculative market system on food and fuel should simply not be allowed.


We're paying, what? $3.50 per gallon for gasoline? And the cost of a barrel to produce is what . . . $28.00 ?

Yet it sells at . . . . $95.00 - $105.00?

Imagine the effect of speculation in grain on a poor country where the farming industry has previously been decimated by cheap imports . . .

I feel bad for ya . . .

But the fact is that if I were investing, I wouldn't be investing

in the misery of others

just my two cents.

[-] 1 points by MonetizingDiscontent (1257) 12 years ago

Na, I'm not into futures. I just think that stealing peoples segregated accounts is theft. And obviously, the CME did NOT Guarantee the contracts in the MF Global Scandal as they promised. If they have 100 Billion in collateral, then why cant they come up with a few hundred million to guarantee these contracts? ...So what was that. A lie? Is it Fraud? A breach of contract?

Gerald Celente: Uncovering what he thinks is the Smoking Gun Behind The MF GLOBAL Scandal

(((Video))) http://www.youtube.com/watch?v=6weHpFCrxdw&feature=player_embedded#!

::::Woman Gets Jail For Food-Stamp Fraud; Wall Street Fraudsters Get Bailouts::::


``Anita McLemore lied to feed her children, gave back every penny of her "fraud" when she got caught, and is now going to do three years in prison. Explain that, Eric Holder!... But you can be a serial fraud offender like Citigroup, which has repeatedly been dragged into court for the same offenses and has repeatedly ignored court injunctions to abstain from fraud, and this does not make you ineligible to receive $45 billion in bailouts and other forms of federal assistance.''

[-] 1 points by MonetizingDiscontent (1257) 12 years ago

::::::Probe Points to MF Global's Misuse of Segregated Customer Funds::::::


Regulators have unearthed more details about MF Global Holdings Inc.'s activities in the days before its bankruptcy filing that suggest the securities firm shifted hundreds of millions of dollars in customer funds to its own brokerage accounts, according to people familiar with the matter.

MF Global's internal records indicate that the company moved segregated customer funds in transactions as large as hundreds of millions of dollars at a time, these people said. The money was transferred out of the unit that houses the assets of futures-trading customers and went into the accounts of MF Global's brokerage, people familiar with the situation said.

Such moves could violate regulations stipulating that commodities brokers can't mix customer funds with brokerage funds. Brokerage funds often are used to back proprietary-trading positions.

GATA - Gold Antitrust Action Committee http://www.gata.org/node/10683

[-] 1 points by nucleus (3291) 12 years ago

Nothing will be done because the global corporate-financial-complex is busy propping up their house of cards. The installation of bankers as heads of state in Greece and Italy is just further proof.

Change will be the result of collapse, which is coming soon. Domino Theory is not about communism sweeping Asia but about bank failures sweeping the globe. Just wait till they start crying for more bailouts.

Derivatives: The $600 Trillion Time Bomb That's Set to Explode