Friday, November 11, 2011

MF Global Client Theft is Triggering Massive LOSS OF CONFIDENCE in Fiat System

The CME/ SIPC's complete disregard for the customer assets/accounts theft by MF Global and seized by JP Morgan is triggering a loss of confidence in paper financial assets. 

The entire fiat system hangs on the thread of CONFIDENCE.
Remove the sheople's confidence in the fiat financial system, and it instantly collapses.
Where do you think educated investors will place funds pulled out of brokerage accounts due to a lack of confidence?  Educated investors who understand quantitative easing will put it into the only assets with no counter party liabilities- PHYSICAL, IN HAND, GOLD AND SILVER.

Ted Monjure, a 48-year-old Manhattan trader who has $27,252 frozen in a former MF Global Inc. account, said he is considering pulling his money out of his three other trading accounts.

"I'm a high net-worth person, and I don't want to see $1 million get smoked by another misunderstanding," Monjure said, recounting how he'd thought the Securities Investor Protection Corp. covered any losses due to a meltdown such as that at MF Global.
He's now been told SIPC may not cover the money because it was in a futures account and faces months of uncertainty as he files a claim seeking recoveries.
Monjure is one of many customers who can't access cash in the segregated accounts they once thought were safer than bank deposits and just as accessible. Frustrated by a lack of legal options to reclaim frozen funds and dead-end inquiries to call centers and hotlines since MF Global's Oct. 31 bankruptcy, many are not able to trade and say they've lost faith in retail brokerages and the regulatory system.