Saturday 12 November 2011

MF Global: What Counts As Safe Anymore ?

A short while ago I wrote, can't recall where, that I'd assumed back in '08-09 the financial system itself might collapse - credit cards not accepted, wire-transfers not possible, funds frozen etc etc; but that apart from one Sunday evening when apparently the ATMs were nearly turned off, for most people this actually never really happened.

So - can we afford to be sanguine this time around ? Once again, I'm assuming not - and as Exhibit A we have the ghastly case of MF Global.

Hopefully not too many C@W readers have been personally affected by this; but some folks have been seriously harmed. Read this and gulp. When segregated client funds start going walkabout, the end is nigh. What - or who - is next ?

It's the reason (in my personal opinion) why sticking to physical is best if one wants PMs as a hedge against the worst. Even then, unless its under the mattress ...



Anonymous said...

What we're seeing is an end game.

The Euro elite like Berlusconi have used the last 18 months of QE\bail-outs etc. to ensure they've had time to sort out any junk assets in their family fortunes.

With the trusts established, based on real assets not fiat currency, they can now 'retire' and leave the coming shambles to a 'technocrat'.

Let's just wait to see if Omamba clears the table for himself and Chioago cronies before packing it in. Maybe, unlike Al Gore, he wasn't sly enough to talk his book when pushing the 'green' legislation?

The global elite of politicians and banksters are all in for themselves and have left the 'little people' they despise to carry the can.

CityUnslicker said...

Have to say I am very tired of hearing the above comments. Everyone is in some great conspiracy against the 'people.'

Crap. Yes, they all look out for themselves and their families first, as people always do. Yes compound interest has worked its magic even better for the mega rich.

But the idea they want to destory it all...why...why when they are doing so well as it is?

Lots of people said fiat money had some severe problems and I have some sympathy with the idea that the loss of morality in the West has helped to cause this situation.

But conspiracy of them all, no way - history shows it is cock up over conspiracy every time.

e.h. the client of MF global are not the poor, they are other rich people.

dearieme said...

If I blame Blair and Brown,for example, I must also blame the arseholes who repeatedly voted for them.

andrew said...

I blame other people and expect them to pay with fiat money so I can have more nice things to make me feel better.

ps I would rather have Jaguar money please.

Anonymous said...

Anon: "The Euro elite like Berlusconi .. "

It should be remembered that B was a wealthy man before he was a politician.

Cityunslicker: "Have to say I am very tired of hearing the above comments."

Then take ten minutes and watch Bill Black here ..

There was a conspiracy alright ...

Budgie said...

I tend to agree with CU here - it is all too easy, and too lazy, to blame conspiracy when things go wrong.

That is not to say that conspiracies do not exist: the EU was and is a conspiracy.

Anonymous said...

Fuuny, I've just installed a new safe. £129 from B&Q. I bought it after I heard that Barclays had destroyed thousands of property deeds after a senior manager had wondered what these musty old documents were for.

Maybe I'll use it for Krugeraands as well as the deeds to my house.