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Old 11-17-2011, 08:14 PM   #1
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Default "The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty

Ann Barnhardt, whom you may remember from her outspoken videos about Islam, has closed her company, Barnhardt Capital Management, as a direct result of the MF situation.

"Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law."

Worth the time to read it all.

http://www.zerohedge.com/news/entire...lobal-casualty
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Old 11-17-2011, 10:44 PM   #2
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It's a sobering letter.
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Old 11-17-2011, 10:52 PM   #3
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And utter rubbish. This practice is old hat. Usually it is OK, but sometimes someone gets caught with their hand in the cookie jar. The author is either naive, or she revels in the drama.
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Old 11-17-2011, 11:54 PM   #4
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Originally Posted by Sysiphus View Post
And utter rubbish. This practice is old hat. Usually it is OK, but sometimes someone gets caught with their hand in the cookie jar. The author is either naive, or she revels in the drama.
OK meaning legal or OK meaning oops, I didn't mean to blow up the company and steal funds that were supposed to be isolated and protected and now locked out to their rightful owners?
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Old 11-18-2011, 03:19 AM   #5
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OK meaning legal or OK meaning oops, I didn't mean to blow up the company and steal funds that were supposed to be isolated and protected and now locked out to their rightful owners?
Both. The point is that this is nothing new. It has been going on for decades. Assuming she passed her Series 7, she has known about, and accepted, the practice all along. It is disingenuous for her to suddenly act outraged.
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Old 11-18-2011, 03:33 AM   #6
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i see your point, but lately the criminal acts seems to be coming closer together, larger in terms of money and damage and the usual...no one gets handcuffed.

The vampires are no longer creatures of night, but walk by day...that has to be a new development. And we can no longer pretend they are not here.

I think she has a point.

My wife and I closed out commodity accounts two days ago...we had good plans, but good only for a lawful world...and being tired of sacrificing to Moloch, put the remains in physical silver. The only long term hedge that seems to work for us...and we buy on the way down, all the way to the bottom.
And do not sell or intend to sell until there is a world reset...if there is one.
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Old 11-18-2011, 08:25 AM   #7
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The way I read it …

MFG has screwed the clients
The CME has screwed the clients .
The Trustee in conjunction with MFG have screwed the clients
The Regulators have decided to sit on their hands and in doing so have
screwed the clients.

Whats not to like ?

The lady has decided that this criminal network has reached an
intolerable new low and is exiting the game .

That sounds like a reasonable choice to me .
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Old 11-18-2011, 12:28 PM   #8
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Ooops did I forget to mention the clients were also screwed by ....

- BofA
- JPM
- The media who decline to raise public outrage
- Congress who are paid to look the other way


Did I fail to mention any other criminal beneficiaries of
this crime sequence ?
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Old 11-18-2011, 12:41 PM   #9
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Going Galt, maybe?
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Old 11-18-2011, 03:50 PM   #10
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Theory being advanced that MF Global's bankruptcy was a hit. See here: http://thisbluemarble.com/showthread...462#post323462
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Old 11-19-2011, 06:13 AM   #11
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The more I re-read that letter the more significant it becomes to me .

Instead of acting in a protective way the CME threw MFG customers
to the wolves .

This is what MFG clients could reasonably have expected the
CME to do ....... .
Quote:
Whenever a firm failure happened, the customer funds were intact and
the exchanges would step in to backstop everything and keep customers
100% liquid even as their clearing firm collapsed and was quickly replaced
by another firm within the system.
She then provides a very plausible explanation of
why the CME did not act in a principled and protective way .

Quote:
I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.

She is also absolutely correct about continuing to trade on the CME .
Doing so now exposes traders to unknowable financial losses with no
opportunity to exit as Europe implodes financially .

As a trader would you continue to operate in that environment ?
Especially so if Europe is expected to go terminal this side of Christmas .

.
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Last edited by Ross; 11-19-2011 at 06:31 AM.
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Old 11-19-2011, 02:00 PM   #12
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http://at.pscdn.net/008/00102/videop...CNBCDuffy.html
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Old 11-20-2011, 11:50 AM   #13
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Quote:
Originally Posted by Ross View Post
As a trader would you continue to operate in that environment ?
No.

In another thread; regarding whether MF Global was a hit, you said the following:

Quote:
Originally Posted by Ross View Post
I do not think so LB .

It looks to me like a simple case of extreme ambition driving
reckless behavior in pursuit of personal glory .

Corzine should be in handcuffs .

Using client money leveraged 40:1 in this environment
with no ability to make good client losses is just plain criminal .
While I agree there is a high degree of greed involved, I also believe there is a certain amount of plausibility in the theory for precisely the reasons you've outlined in your post on this thread.

The lack of action and consequences (to date) by any of the enforcing agencies combined with the late week (last) margin hikes continue to pressure commodities. If there is a behind-the-scenes move to capture physical holdings wouldn't it be nice to do so at a lower price? The accelerating rate of collapse and the astonishing gyrations of rumor/policy statements coming from officials in Europe indicate to me that i) printing is imminent by the ECB or ii) the can has reached its kicking limit and the end-game is afoot. In either event the price of commodities will be heading up. BTFD (buy the forced dip).

Just my conspiratorial thoughts anyway. YMMV
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Old 11-20-2011, 06:35 PM   #14
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Quote:
BTFD (buy the forced dip).
I can honestly say it never ever occurred to me that
the 'F' might represent the word 'forced' .
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