Sunday, January 1, 2012

Ann Barnhardt: The Futures Markets Are DYING

Ann Barnhardt of the former BCM is back with another rant on the consequences/fallout of the MFGlobal segregated fund confiscation, stating that all of her futures markets contacts are confirming that the futures market business/ volume is drying up and DYING. 
Barnhardt further explains her rationale that Jon Corzine has committed economic treason and should be executed for his crimes.

I absolutely, totally, completely and 105% confirm that the futures markets are withering and dying on the vine AS WE SPEAK. I’m hearing for every single one of my contacts, both floor guys (in both Chicago and NY) and introducing brokers (as I used to be) all over the country, that business is totally evaporating. And we’re not talking the normal Christmas season slowdown. No. We’re talking people explicitly stating that they are done trading and hedging with futures, both speculators and hedgers. It’s over. No mas. See you later, Alligator. Buh-bye.

This was going on to some extent before the MF Global rape/theft. The markets had grown thinner and thinner, ironically on more net volume, but the volume increases were due to the veritable fungal infection of the market that is the high frequency algorithm trading systems. Furthermore, any short hedger with a brain in their head over the last 18 months has known that short hedging in an inflationary environment is and would be needless suicide. Why IN THE WORLD would you SHORT an inflating market? If Mrs. Reggie Love is printing money a trillion at a pop, and I think Mrs. Love’s debasement will be at $8.5 TRILLION in a few weeks after the debt ceiling is raised yet again, isn’t it obvious that currency debasement is happening and that physical commodity prices are going to necessarily inflate? At this point, anyone who actually believes any statistics that come out of the federal government or the Federal Reserve (there’s no inflation!) has got to be mentally disabled. Literally. Mentally disabled.
This MF Global situation isn’t just about a few bucks being stolen from a brokerage firm. Both the scope and cascading consequences of Corzine’s actions put this firmly in the domain of economic treasonas in an act of economic war upon the United States and her people. This is why I told Peter Schiff that execution should be on the table for Corzine. Treason, in whatever form, is a capital offense. If Schiff hadn’t cut me off, I would have explained this. Capital punishment is serious, solemn business. It’s not an inflammatory rhetorical tool. If execution is ever put on the table, there had better be a solid, well-thought out justification for it. In this situation of massive economic treason, it would be fully justified.
I continue to marvel at how the cash cattle marketing skillset that I was taught and continue to teach is EXACTLY the remedy for what is happening around us. The answer is not in ever more complex derivatives, but in the simple, millennia-old arithmetical art of physical commodity arbitrage.
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