In the thread It all ends Monday by Vitchilo, a margin call was predicted and it
happened, though quietly. You won't see any big headlines but the articles are out there.
MF Global went under because they made leveraged bets of 40 to 1 on European sovereign debt. Guess what, it was a bad bet. So what
did MF Global do?... they stole money, emptied their account-holders' segregated savings accounts to the tune of almost $900,000,000 and affected
more than 21,000 account holders. And the kicker... after they emptied these account, brokers were asking their clients to transfer MORE money into
their accounts so they could steal that as well!!
Now there are a few underlying stories here that are important to touch on...
1. Gerald Celente, President of the Trends Research Institute and editor of the Trends Journal was one of the victims of this theft. The important
aspect here is that he had been accumulating gold futures for sometime and was to take physical delivery of that gold in December. I think it's easy
to see MF Global did not have the gold to honor their contract. And I don't think its a leap to assume other firms don't have the actual gold on
hand to honor contracts and unfortunately countless people hold certificates instead of physical gold. Now is the time to get physical delivery of
gold!! It is believed that the price of gold is being suppressed. Celente was on Alex Jones Tuesday, Nov. 15th to discuss this corruption and let
off a little steam - warning us all about the coming collapse. AJ podcast page for 11/15/2011
2. From the NIA Newsletter:
MF Global's CEO for the past two years was Jon Corzine, who made his fortune as CEO of Goldman Sachs and went on to become governor of New
Jersey. Corzine should know a thing or two about taking major risks. After all, Corzine was one of the Wall Street CEOs that helped orchestrate the
bailout of Long-Term Capital Management (LTCM) in 1998 after LTCM borrowed 97% of the money that they invested heavily into Russian sovereign debt
that Russia defaulted on.
Unfortunately, Corzine made the same mistake LTCM did and used leverage of over 40 to 1. MF Global had over $40 billion in assets, but had less than
$1 billion in equity. Last month after it was disclosed that FINRA forced MF Global to increase their net capital backing its European sovereign debt
position, ratings agencies downgraded MF Global's debt, clients pulled funds from their accounts, and shareholders sold their positions, forcing the
company to file for bankruptcy.
So here we are with another Goldman Sachs CEO gambling with mainstreet money. Corzine was sought after by the Obama administration for advice
regarding the financial crisis. America, the world rather, needs to rid these immoral gamblers from our government first, then society.
3. The $600 trillion derivatives market. All of us have heard it before, but this is what is really too big too fail but fail it will.
The derivatives market is $600 trillion big and much of that market is controlled by just 4 Wall Street megabanks: JP Morgan Chase, Citigroup, Bank of
America and Goldman Sachs (according to the Office of the Comptroller of the Currency). Who is the watchdog for those derivatives? The CFTC has
responsibility for most of them and it is getting a budget of only $205 million.
Just like MF Global found out, its just a matter of time, especially with very limited oversight... by a government which they control. A gambler's
luck will always run out. The leverage at which these bets are being made is what will bring the global economy to its knees. What makes it every
more frightening is that there are many who are betting against our economy. While the Fed prints more money, which goes to corporations, the buying
power of the dollar declines and soon we will see hyperinflation. The dollar has already lost 96% of its buying power since the inception of the
Federal Reserve. You can take this tip-of-the-iceberg information any way you want but you'd be silly not to believe that this derivatives market
will not coming crashing down, bringing the world with it. Of course it's hard to imagine, but I'm sure it will be even tougher to endure.
The watchdog of the derivatives market can't even prosecute or investigate that market due to government intervention, the CFTC has been literally
shackled at their hands and feet.
They are merely a government funded entity with no power, they shouldn't even get 205 million, as the regulatory agency with no power it's
Do some research you will see the CFTC has had it's hands tied since day one. The CFTC was built to fail, it had a good goal, too bad no presidents
saw it fit to ensure those goals were met.
Nope instead the great leaders allowed the financial market to become President. And it still is President even though there is lots of murmuring in
the country, it's nothing serious to the leadership of the country and their lackey's.
While OWS is on the streets, their in their penthouses watching us.
edit on 17-11-2011 by EspyderMan because: (no reason given)
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