**it happens, sometimes you're part of it.
I've been hedging through a 3rd party discount broker for years.
A couple of years ago by sale , merger or acquisition MF took over.
I recieved a packet in the mail today with 5-6 pages front and back
of questions to file a claim.
Wish this would have happened on a day
when I had a margin call. No not really. But I can't help but think
this is going to get a whole lot more complicated.
Wish I wasn't part of **it.
I still trade with the same broker through RJ O'Brien.
Re: MF Global
What amazes me since 1998, when most big companies fell the Fed bails them out overnight or in the LTCM organized the bailout. Where is the Fed in helping bail out all the little guys MF Global Futures accounts?
"According to all records, the money that was injected into LTCM was provided by a consortium of banks without any of the Fed’s own liquidity. If the Fed did not actually bail out LTCM, why did they orchestrate the entire scenario and force themselves into the situation?
Although Congress created the Fed, it is not a government institution. As former Fed Chairman Alan Greenspan has said, “The Fed is an independent agency. There is no other agency of government that can overrule actions that they take.”
This encouraged irresponsible risk taking."
Re: MF Global
There are some explanations about a 'loophole' allowing MFGlobal money to be transferred to foreign markets that might result in producers not getting all of their money. It's seemingly within the realm of possibility that brilliant and deviant minds have built an economic structure that is now so complicated and obscure that anything is possible, and yet nothing is repairable, much less explainable - and certainly not logical. I'm talking about paper and derivitive markets, not primary markets - but that is where monstrous amounts of money are played with. It now appears that the growth of cobwebs are increasing faster than regulators can figure it out. Unfortunately we have gutted and weakened regulatory authirty and the specalized prosecutorial powers needed to keep the whole mess in line.
Al I can say is socialism is no longer at the top of my list for 'immediate concerns'. We can't even figure out capitalism.
Time for a new 'old rule'. KISS. Keep it simple stupid. If you want to keep making a lot of side bets then you're going to be the fodder running the next perpetual motion financial machine. All you have to do is sign on the dotted line. Feel 'free'.