MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone

http://www.zerohedge.com ^ | December 07 2011 | Tyler Durden

[SatinDoll]

Hell, it may have apocalyptic ramification here in the USA!

[Para-Ord.45]

From the article:

” Engaging in hyper-hypothecation have been Goldman Sachs ($28.17 billion re-hypothecated in 2011), Canadian Imperial Bank of Commerce (re-pledged $72 billion in client assets), Royal Bank of Canada (re-pledged $53.8 billion of $126.7 billion available for re-pledging), Oppenheimer Holdings ($15.3 million), Credit Suisse (CHF 332 billion), Knight Capital Group ($1.17 billion),Interactive Brokers ($14.5 billion), Wells Fargo ($19.6 billion), JP Morgan($546.2 billion) and Morgan Stanley ($410 billion). “

[SatinDoll]

I read the article at barnhardt.biz this morning. It was short and to the point, covering this situation precisely.

WE’RE ALL GOING DOWN!!

[Lazlo in PA]

And why Corzine is not in leg irons, I will never know. This is Ken Lay stuff. This is what is wrong with the country. No on goes to jail anymore for their crimes.

[miss marmelstein]

Who would have thought that just a young New Jersey boy with a dream would be the one to bring down the entire continent of Europe?

[SatinDoll]

Do you know, or can you guess, at what will happen if Wells Fargo and JPMorgan cease to exist? What happens to the monies owed them, for houses, automobiles, and credit cards?

[SatinDoll]

Oh, my!

“Who would have thought that just a young New Jersey boy with a dream would be the one to bring down the entire continent of Europe?”

I would laugh but instead want to cry.

[Myrddin]

Randy "Duke" Cunningham is sitting in prison for taking "kickbacks" from contractors. From a monetary standpoint, what Cunningham did is microscopic in comparison to what the banks including Corzine have done. Cunningham is a Republican. That jackass with a freezer full of cash during hurricane Katrina is still not convicted and incarcerated. He is a Democrat. There is a pattern to the corruption and failure to prosecute.

[Para-Ord.45]

Could be why Corzine was bullshitting on Capitol Hill?

“I’m not in a position, given the number of transactions, to know anything specifically about the movement of any specific funds..I simply do not know where the money is, or why the accounts have not been reconciled to date.”

Corzine didn`t have to “ authorize “ the raiding of segregated funds because the hypos were being done in an MF branch in the UK ?

[Nowhere Man]

Do you know, or can you guess, at what will happen if Wells Fargo and JPMorgan cease to exist? What happens to the monies owed them, for houses, automobiles, and credit cards?

Good question, I've always thought that myself. It is like the reverse of somebody who dies and there are no relatives, what happens to any debts?

[SatinDoll]

I’m reminded of line in a movie, Independence Day, when the Secretary of Defense tells the President (during an alien attack) why the Prez was never told about the dead ETs in the basement at Area 51:

“Plausible deniability.”

I would wager that Corzine knew everything.

[july4thfreedomfoundation]

“No one goes to jail anymore for their crimes.”

If Corzine was a republican, both the media and the democrats would be demanding that Corzine be crucified on national television.

[SaxxonWoods]

“It is like the reverse of somebody who dies and there are no relatives, what happens to any debts?”

Oh, not to worry, those debts have been rehypothecated so many times there will be a flock of Simon Legrees chasing the debtors.

The lawyers will be the last ones to get rich before the denouement.

[101voodoo]

I believe the failed banks, including loans and credit card accts (assets) are taken over by the FDIC and resold to other banks. Customer deposits (liabilities) are insured up to $250,000 per eligible account so they will be taken by whichever bank buys the failed one

[SatinDoll]

If there is an economic collapse, how can “assets” be sold when no one has any money? The FDIC just seizes everything? If none of us are getting our pensions or social security payments, then paying debts will be moot.

Somehow this doesn’t seem right.

[dirtboy]

These financial rocket scientists create shadow systems out of the view of the larger public and regulators. And then basically beg to be bailed out when those systems implode on them.

This crap has to be dragged out into the light.

[scooby321]

Gordon Gekko said the next would be it.

[101voodoo]

I was referring specifically to banks. The customers deposits in savings, checking and CD accounts is FDIC insured to $250,000 per eligible account.

Pension payments do not come from these accounts as far as I know and SS payments come directly from the government. Any funds invested in brokerage accounts are not covered by FDIC but unless fraud is involved these accounts should not be affected by the collapse of the bank except to the extent the market reaction will cause the shares value to decline due to said collapse. Money invested in brokerage accounts is actually with the institutions which manage the accounts. As an example, if you ask your bank to buy 1000 shares of the fidelity Ginnie Mae Fund the money from your account goes to Fidelity Investments which will use it to buy the 1000 shares in your name. The failure of your bank will not have any effect on the value of these shares except as I mentioned before except as a reaction to the banks failure which in this case could cause the shares to increase in value because the fund invests in 100% government backed securities and obligations to a maturity of about 5 years.

[EBH]

Simon Legree is a cruel slave owner—a Northerner by birth—whose name has become synonymous with greed. He is arguably the novel's main antagonist. His goal is to demoralize Tom and break him of his religious faith; he eventually orders Tom whipped to death out of frustration for his slave's unbreakable belief in God. The novel reveals that, as a young man, he had abandoned his sickly mother for a life at sea and ignored her letter to see her one last time at her deathbed. He sexually exploits Cassy, who despises him, and later sets his designs on Emmeline.

It is unclear if Legree is based on an actual individuals. Reports surfaced after the 1870s that Stowe had in mind a wealthy cotton and sugar plantation owner named Meredith Calhoun, who settled on the Red River north of Alexandria, Louisiana. Generally, however, the personal characteristics of Calhoun ("highly educated and refined") do not match the uncouthness and brutality of Legree. Calhoun even edited his own newspaper, published in Colfax, originally "Calhoun's Landing", renamed the National Democrat after Calhoun's death. However, Calhoun's overseers may have been in line with the hated Legree's methods and motivations.[27]

Interesting write-up of Legree in Wiki. Just thought I'd share it. Uncle Tom's Cabin

Modeled after democrat slave owners. Beating God out of a man, exploiting women and girls, greed. Have the democrats really come into modern life? Are they really all that civilized from the time of Uncle Tom's Cabin.