Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.Addendum: A lot of people think that greed is the key to capitalism. It is not--greed is a constant that exists in all economic systems. The key to capitalism is trust, and the conditions under which it is wise to trust others are difficult to develop and easy to destroy. Trust of strangers does not exist in many societies, and as the result their ability to use markets is limited. The rule of law with well-defined property rights is a key to generating the trust needed for a market society because it reduces risk.
A Losing Perspective
4 hours ago