Tuesday, December 13, 2011

The MF Global Debacle

Hushed away in the news is the economic debacle of a former Democratic Senator and Governor and his running of MF Global Investments. MF Global for those who do not know its complexities and operations is a cash and derivatives broker-dealer, that delivers access to the world's financial markets in several different ways. For example, some agricultural businesses use firms like MF Global to help reduce their risks and volatility in oil, corn and other commodity prices/markets. They hedge their monies in other words to reduce risks in these markets.
However $1.2 billion of many customers monies is missing. Jon Corzine the former Democratic Senator and Governor who is also the former CEO of this company made a foolish risk and bet on the ongoing European debt crisis and lost. And he does not know where the missing money is. Sounds unbelievable?
Enter now the spin control factor of Mr. Corzine political connections with his being called to testify in front of some Congressional committees. And also enter now the media spin control to protect yet another Obama crony and his highly irrational economic decisions. Why Mr. Corzine bet on the Euro crisis makes no economic sense or logic to me. Why this risk was kept off the financial records of MF Global also makes no economic sense to me. How is this legal? How with all the new financial legislation and laws that this Administration has passed could this have happened? Is it possible that Mr. Corzine is above the law due to his political connections?
And lastly what about those farmers throughout our country who are trying to find out where their monies are? I wonder if they will vote Democratic in 2012?
This new financial company debacle is more of the same, more economic greed and more taxpayers bailouts of those who are politically connected.

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