Gerald Celente got burned in the MF Global crime.

[Atash Hagmahani]

Lind-Waldoc was bought up by a company that was bought up by MF Global. So, Mr. Celente's account at Lind-Waldoc was managed by MF Global.

For those who haven't heard the news yet, MF global not only made a leveraged wrong-way bet on bailouts in Europe, but used client accounts as collateral for its own activities.

I'd like to point out that:

Bernard Madoff was chairman of the NASDAQ
Jon Corzine is former CEO of Goldman-Sachs and former governor of New Jersey.

These aren't rogue traders on the fringe--they're key insiders!!!

What does this tell you about the whole system?

<a href="http://www.youtube.com/v/kt-mVWYvOm0?version=3&amp;amp;hl=en_US" target="_blank" class="new_win">http://www.youtube.com/v/kt-mVWYvOm0?version=3&amp;amp;hl=en_US</a>

Beware. Beware. Beware. The rot is already spread all over the place.

[Eddie]

What does this tell you about the whole system?

Ummm....one big ponzi scheme.

That's to bad for one of my favorite gurus. He said he lost six figures, Im sure he's diversified, but still that's a lot of money, and a little humiliating on his part, but I give him credit for coming out and continuing to inform us.

[spacecase0]

I am kind of surprised that he did not see this headed his way,
I thought I remember him saying that this sort of thing would be happening

[offdalip]

yeah but this firm cleared about half of all currency and commodities for its client traders.

it would be like BoA suddenly going Bankrupt overnight, sure we knew they were in trouble
like everyone else but just not soo acutely so .

BTW, Europe's banks are much much worse. They will get nationalized/ bailed out very shortly.

Which was MF Globals exact position. Just wait a little longer! They will get bailed out!

BUT, the market can certainly make you bankrupt as you wait for your ultimately correct position to be borne out but you are penniless
before it comes to pass.

In Options trading that is called the time premium, and it'll cost you big if you don't go out for a long horizon sometimes

[darwinslair]

Amazing, the flat-out illegal activity that has taken people's assets, who had NOTHING to do with MF global, due to MF Global not keeping client accounts separate from their own (which they are required to do)

It is just theft.  That is all.  NO DIFFERENT from you taking money out of the company drop safe, and gambling with it overnight while planning to take the cash box back up par with your winnings before the boss balances the books the next morning.

Tom

[offdalip]

Not illegal

That is what really really sucks

Just hugely immoral

Corzine would not have put anything at risk past the legal tiptoe

AND he knows where the invisible line stands as a former SEC regulator
and state GOV

Amazing, the flat-out illegal activity that has taken people's assets, who had NOTHING to do with MF global, due to MF Global not keeping client accounts separate from their own (which they are required to do)

THAT is called "co-mingling".

and is probably the single BIGGEST no-no in the regulative playbook. If they prove that, it is automatic jail time...............

[Atash Hagmahani]

Bear in mind that MF Global was a "primary dealer"--a direct partner of the Federal Reserve.

For better or worse, the financial system controls how resources are allocated. It's rotten beyond healing.

[Mike]

or better or worse, the financial system controls how resources are allocated.

So true.  And those who have mis-allocated wealth and resources are made whole over and over again.  And I don't see any about-face, or change on the horizon.  So the best case scenario is, "It has to get worse before it gets better." 

  It's rotten beyond healing.

So it appears.  Time will tell.  If it is rotten beyond healing, we may have a Mad Max future.

It's rotten beyond healing.

[darwinslair]

I was not aware that firms were allowed to co-mingle client funds with their own.  From what I remember from my old licensing classes that was a huge no-no.

Tom

[darwinslair]

It is not often that we see an official admission by a company to its regulators that oops, 'it just may have embezzled' hundreds of millions of dollars from its clients. Today, courtesy of the WSJ, we do, namely that of MF Global advising the SEC that it has "discovered a significant shortfall in its segregated funds account." Expect to see this revalation in countless investor lawsuits against the company. Also, expect to see all bonuses paid to MFG's employees the day before the company filed to be clawed back in the form of fraudulent conveyance lawsuits, so to any former MF workers: our advice is  don't spend all that client money just yet. Incidentally, the primary SEC supervisor for MF Global is Michael Macchiaroli at macchiarolim@sec.gov - let's all take a minute to personally thank him for being on top of this whole bankruptcy like a hawk.



from http://www.zerohedge.com/news/exhibit-mf-globals-admission

It was a segregated account the money is missing from.  I do not think this was legal.

Tom

[darwinslair]

I cannot find anything that says it was legal.  CLosest I can find is that it was "unintended" which is really not possible.

Tom

[Atash Hagmahani]

Oh boy, he's still angry and now he's ranting:

CAUTION: numerous vulgarities.

<a href="http://www.youtube.com/v/lxA97-khenI?version=3&amp;amp;hl=en_US" target="_blank" class="new_win">http://www.youtube.com/v/lxA97-khenI?version=3&amp;amp;hl=en_US</a>

I think part of the problem is that even fairly sophisticated people underestimated the extent of the fraud that is now being discovered throughout the system.

Something similar happened in Japan after the Japanese bubble burst. During deleveraging, it gets harder and harder to hide fraud.

[Beeherder]

Does this effectively end the futures markets? How can anyone seriously think their capital is safe or even exists at all if there is no accountability? Stock Market = 100% ponzi scheme, Fiat dollars = 100% fraud unbacked currency, Commodities futures markets ??? does that end financing for agriculture? How can farmers even think about planting even if they could get the money to buy seeds without the safety offered by future sales of the expected ag commodity?

What does this mean for precious metals contracts in general? Gerald is whining they stole his money because they contracts were ... ??? He had already said in recent interviews he intended to start taking delivery on silver contracts. Last i heard that's 5000 ounces of silver per contract. If MF Global just walks away with the money and there are no consequences what does that mean for the international precious metals futures markets? The impacts of this seem system shattering.

Is this the Black Friday moment of the Next Great Depression?

[darwinslair]

bingo

[Dame]

Does this effectively end the futures markets? How can anyone seriously think their capital is safe or even exists at all if there is no accountability? Stock Market = 100% ponzi scheme, Fiat dollars = 100% fraud unbacked currency, Commodities futures markets ??? does that end financing for agriculture? How can farmers even think about planting even if they could get the money to buy seeds without the safety offered by future sales of the expected ag commodity?

What does this mean for precious metals contracts in general? Gerald is whining they stole his money because they contracts were ... ??? He had already said in recent interviews he intended to start taking delivery on silver contracts. Last i heard that's 5000 ounces of silver per contract. If MF Global just walks away with the money and there are no consequences what does that mean for the international precious metals futures markets? The impacts of this seem system shattering.

Is this the Black Friday moment of the Next Great Depression?

I think you speculate in the right direction.