It is humorous and even a bit sad that I need to comment on the importance of the Rule of Law for creating a sustainable community. When one set of rules apply to 99% of people but not to the most powerful 1%, you have a recipe for social discord and ultimately social destruction.
We sit in the uncomfortable moment when the old social system is breaking down. This system granted immunity to the top 1% from the Rule of Law (MF Global is the latest example). Whatever system(s) replaces this corrupt, old system, we need to remember the importance of the Rule of Law or else we shall see a repeat of social injustice and an unsustainable culture.
Source: Ann Barnhardt
I have talked to several cattle industry contacts who had accounts with MF Global. They have been calling me looking for guidance and assurance that everything is going to be okay and that they are going to be made whole. Sadly, for me to tell them any such thing would be boldfaced lying on my part. And so I tell them the truth.
As of this writing, the amount of customer segregated funds that are missing and have been stolen from MF Global customers stands at a staggering $1.5 Billion, more than double the initial estimate from Monday of $700 million. I will not be the least bit surprised if the $1.5 Billion figure is ultimately revised up even more…
…People are honestly trying to justify MF Global and Corzine’s theft by stating that FCMs have sure had it rough these past two years because they have made no money on interest. Uh, like that is some sort of an excuse for STEALING CUSTOMER FUNDS?
As I laid out earlier this week, MF had some seriously inflated margin requirements. It appears that Corzine did this because he viewed the excess cash in the customer segregated accounts as “interest-free capital”. Why borrow money from a bank at interest when you can use your customers’ money interest free? Who cares if it is illegal? You’re Jon Effing Corzine. You are Barry Obama’s top Wall Street fundraiser. The laws don’t apply to YOU.