Posted on 12/06/2011 10:14:23 PM PST by Razzz42
CHICAGO (Reuters) – For the first time in 25 years, Minnesota farmer Dean Tofteland has missed his deadline to buy seed for next spring’s corn and soybean crops.
With $200,000 of his money yet to be returned from the accounts of MF Global, his former broker, the 49-year-old farmer has missed a $5,000 discount for early buyers, and is watching friends and neighbors snap up the best varieties of seeds.
In the latest sign of how MF Global’s failure is continuing to cascade across the commodity industry, Tofteland and other farmers who have yet to recover more than a third of their money from the bankrupt broker now find themselves in a cash crunch that risks rippling far beyond the futures market...(Can only excerpt Reuters.com)
(Excerpt) Read more at reuters.com ...
http://www.jsmineset.com/
With Sinclair's brief comment on it and where the other day he was commenting on how important it was that these trading houses function properly or the entire system will fail as they are like banks, used to hold your money while you decided where to invest it. They are definitely not designed to steal clients money and then go broke like MF Global did.
Jim Sinclair’s Commentary
The seriousness of this cannot be overstated. Here the Banksters have cleaned out the heartland using political clout.
The game seems to be to operate anything that houses huge client funds and use them to speculate for the entity. If you win you bonus it out; If you lose screw them all.
To make all the banks and financial entities (including hedge funds) whole and many hugely profitable on the fraudulent OTC derivatives, leaving MF clients to take a long walk off a short financial dock is unthinkable.
Shame on you Sheeple that permit such in your cowardly silence. Shame on you others that are too damn lazy to protect yourselves no matter how hard I try to teach you how.
Someone on one of my ping lists objected to the use of an image of a guillotine in a ping. I think we need to see it for real on the National Mall.
“I think we need to see it for real on the National Mall.”
Just damn, I’ve been thinking that too. [self censoring remarks about Nancy Pelosi]
I DO want to see Jon Corzine, first in the hot seat, later in a cold cell.
I've never seen a media blackout like this. This is the kind of media treatment of a scandal involving political figures that I would expect in a banana republic, but not here.
MF Global cascading fallout ping-— this is what Barnhardt was talking about in her interview.
MM: Re: the above. You might be interested in this interview (audio & transcript at link).
http://www.freerepublic.com/focus/news/2816382/posts?page=36#36
Looters rape producers as people just watch and wait.
Another from Jim Sinclair (who business is primarily precious metals):
Clearing Houses Are The Mechanism Of All Markets
December 2, 2011, at 4:13 pm by Jim Sinclair
My Dear Extended Family,
We all know bank’s balance sheets are cartoons due to FASB’s capitulation on the fair market value issue, that the euro financial leaders do not deserve the title leader, and that the Fed is the source of liquidity for Euroland in unlimited cheap dollar swaps, but there is more.
That more is the first failure of a major clearing house.
Clearing is the mechanism of all markets.
It is the guts of the system.
It is the engine under the hood of finance.
It is the pulleys that turn inside the watch.
It is basic to finance for without clearing trades cannot close.
Without faith in the clearing house system where is faith that what your account statement says means anything whatsoever?
Unless MF clients are made whole in every way, the system is broken. It is as if the heads blew off the engine of finance. Where can you keep your money and investments if a clearinghouse is allowed for whatever reason to go broke, therein leaving the clients to suffer?
Are you safe even in a custodial account if the clearing mechanism can erase assets across the board as a product of insolvency for any reason?
The system is in a critical seizure.
It may take some time, but even the financial sheeple are going to worry about their own funds. God help you if you hit gold right on a paper exchange with the wrong clearing facility.
You are wholly dependent on the ability of the clearing house to pay into your account the winnings by deducting those funds from the loser. You are wholly dependent on the ability of the clearing house to guarantee the safety and security (are T Bills securities?) beyond SIPC levels. SIPC is underfunded but would be made whole by funny paper.
God help all the exchange traded funds that are nothing more than houses of derivative paper requiring a sound clearing system to have even an excuse for existing.
If the clearing system fails then you have nothing whatsoever. God help you if you are a farmer hedging your crop or livestock if you the farmer have nothing whatsoever due to a broken clearing house. You are insolvent regardless of the fact that your hedge may have been perfect for the needs of your operation.
Unless MF clients are made whole in every way the system is broken.
People did not realize then and some even now that the failure of Lehman broke the technical procedures (mechanism) for the functioning of the OTC derivative and for that reason broke the Western world’s financial system for which we are paying dearly today.
MF is a Lehman Brothers, but worse. OTC derivatives have always been a fraud but could have, before Lehman failed, been globally netted to practically zero.
The lack of faith in the clearing house system breaks the mechanism of the marketplace, even for legitimate transactions. This leaves gold in your possession as the asset of last resort. This is quietly driving the gold price towards Alf’s objective of $4500.
For your sake immediately take delivery of your gold and silver.
For your sake immediately take paper delivery of your gold and silver shares from those very few companies still willing to facilitate that kind of transaction.
For your sake immediately make your general securities positions “direct registration” as a second best method of protection the asset against failure of your clearing facility.
You all have clearing facility dependence even if you do not know it. Unless MF clients are made whole in every way, the system is broken.
This is no time to take any unnecessary risk.
This is no time to be lazy.
If you do not know how to do direct registration, get paper securities or take delivery of paper gold and silver, ask me.
Respectfully,
Jim
http://www.jsmineset.com/2011/12/02/clearing-houses-are-the-mechanism-of-all-markets/
http://www.freerepublic.com/focus/news/2816382/posts?page=40#40
Welcome to Phase II of the looting of the world.
In the making since carter, set into motion by clinton who built the infrastructure, and triggered by bush when he left office.
Had bush sr been elected instead of Reagan, it would have started sooner.
Notice Sinclair is ahead of the curve when he says “political clout” and doesn’t even mention Corzine because Sinclair in his long history use to run a trading/clearing house so has a clue about these matters. He knows Corzine lobbied to have regulations waived or suspended so Corzine could trade using clients money. Made a special flight to Washington to gain the favor.
I think Corzine will skate on this, at most a fine but no jail time. O’bummer will probably pardon anyway on any federal crimes but it is the civil suits recently filed by exemployees (I’m sure other suits will follow) that will be the most damning.
All the candidates are really talking about this event and putting it the limelight, Huh?
GOLD was the reason for Libya. The French and British were stashing ‘missing’ gold in Libya that was unaccounted for.
They weren’t after weapons...and dead dictators tell no tales.
Interesting. Is this the French and British govt, or ordinary citizens? Where did you read about this? thanks.
He followed up with exactly how to take possession of your trading stocks because if you don’t take possession, they are in your broker’s ‘street name’ which means you really don’t own them, your broker does, technically.
So, Sinclair’s fear is that this MF Global event could happen again maybe at your brokerage next time where you lose your shares and part or all of your money. Sure, you might be insured up to $250,000 maybe $500,000 in some cases but it takes time to recover that money and you are probably 3rd in line for any recovered monies. And what if the Federal insurance pool goes broke, then what?
Anyway here’s a link about doing it, to take possession, remembering it’s harder to do everyday trading when you take/get them (your stocks) in certificate form.
http://www.stocktransfer.com/index.cfm?action=shareholders.FAQ.dirRegistration
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