Well being Libertarian because you dislike both major political parties doesn't really help the country who still know that the only way to ever get a President's campaign promises done is to win a majority in the house and senate. Libertarians will never win that, and not in my lifetime. They have unique ideaologies more consistent with modern macroeconomics but I don't believe just because they separate themselves from the mainstream that that means they are anymore well suited to make decisions about a government that produces nothing but waste and economic losses. The US government must begin producing something with their cash supply, and the only way for that to happen is to make the Fed produce outsized profits from their trading, and only with models they've thoroughly researched. When they can avoid moving markets because they're stupid enough to dump their treasuries at times of the day known to the market there isn't anyway for them to profit like that. They should start trading treasury futures and bonds to pay our national debt. <b>This is the only way that we will avoid bankruptcy, and in the sense that we want our currency to be as valuable as possible and commodities as worthless as possible it will also produce deflation despite the inflationary effects of returning capital back to the market.</b> Yes, this is the only solution for America's problems. The US Government needs to find markets that it can profit and pay for its expenses, and, incidentally, I saw the last of my futures trades in ZB, ZF, ZT have 98+% win percentages, so I'm proposing that as a solution so we can avoid the collapse of the financial system and it needs to be done fast. Libertarian have some suggestions that would do this country good, including decrimilization of cannabis and aboloition of the tax codes to a VAT or flat tax but really anything besides an income based tax structure. I think the Libertarian party is only afforded an advantage whenever there is some controversial politician competing who may have made some wrong decisions in the eyes of the public. Until this party has more power, it is irrelevant, and I encourage you to make sure you vote for somebody who has at least a marginal chance of winning. Once politicians get these messages we'll be on a better trajectory than in the position of wasting monetary supplies for the sake of policy. I know for a fact that they'd be able to use what I have for maximum effect. If they don't we will face our bankruptcy but it can be prevented if the government produces economic profits.
Nice. I'll bet there's a silent run on many FCM's. The clearing members, FCM's, and the exchanges help shape CFTC's regulatory mess. The real surprise is that hasn't happened sooner. All most account holders can do is vote with their feet / funds.
A silent run is excactly what the exchanges don't want to see, perhaps this will be another flame under their butts to pressure for a quick resolution. For what it's worth, I have these sites bookmarked. http://cmegroup.mediaroom.com/ http://dm.epiq11.com/MFG/Project/default.aspx http://www.johnlothiannewsletter.com/tag/mf-global-news/ http://sipc.org/ http://www.rjobrien.com/mfglobal/
I believe in the UK, segregated accounts must have Trust status, this means money in the Trust accounts are protected from the bankruptcy. This doesn't stop the firm from stealing or losing the money but should prevent other creditors making a claim on what is there in a bankruptcy.
I believe that the business side creditors cannot make a claim on the segregrated funds here also however I am still worried that the major banks / clients on the business side of MFG are crafting arguments against that concept. I have yet to see someone strong enough to take up our side and represent the traders with segregrated commodity accounts in front of the trustee to prevent that from happening. The big picture right now is the ability of the forensic accounting to find the trail of the missing money. I've been reading that the trail is quite convoluted, record keeping is quite a mess, weather that was accidental or by design is yet to be seen. I did send an e-mail to MFGITrustee@hugheshubbard.com asking for status on my account, if there was anything on my end to help facilatate the fund transfer when it occurs. We'll see what the reply will be.
Sent one a long time ago - They don't seem to respond to anything. The trustee's reference to accounts in limbo as 'unsecured creditors' remains unnerving. Anyone who thinks the legal system isn't up for sale based on who can afford to hire who is living in a dream world.
The bankruptcy trustee's job is to maximize recovery to the creditors and distribute equally among them. As such, he is quite likely to be somewhat hostile to claims by any particular group (in this case the brokerage clients) that they want all of their money back ahead of everybody else. I do not know that the bankruptcy trustee has any statutory or other role to advocate for brokerage customers over general creditors. Brokerage customers should not be expecting favors from him, but instead suing him in court etc. to keep his hands off customer segregated funds. He is standing in the place of what is left of MF Global effectively. If I were involved I would petition the court to appoint a separate trustee for the segregated funds. This person would seek to maximize their recovery from the banks etc., and from the MF Global trustee in bankruptcy. It looks as if nobody is fulfilling this role at the moment. In other words, the brokerage clients should be looking for some forceful advocate other than the trustee in bankruptcy, since the latter is not necessarily on their side. Their advocate might be the CME or the CFTC or some other governmental agency, but if those agencies are not taking up the role, then brokerage clients need to hire their own lawyers.
The original statement filed by the trustee implied that this entire action was primarily to protect the interests of customers of the brokerage. Why does it seem that customers with the least disputable claims [customers with accounts having no market exposure due to open positions] are having the most difficulty getting their property returned. It sure feels like 'back of the bus, back of the line treatment' to most account holders. http://dm.epiq11.com/MFG/DOCUMENT/GETDOCUMENT.ASPX?DOCUMENTID=1442151 So to get this straight, we now have to sue the trustee or petition the court to get someone else to better represent commodity account holder interests? I think not. This is looking more and more like a white wash so the real crimes can go unpunished. The trustee can probe but not share What a load of crap. Back office records for account holders were intact enough to identify transfers, but suddenly the trustee is not able to supply account statements. It's looking like we're last in line for sure. If the banks can stall long enough to crush or weaken participation in an exchange based business model, trading for large customers will move back to the banks books on the banks terms. The real mythology is fund segregation. A great marketing ploy. The biz is too small to garner the moral hazard pay that comes via FDIC protection, Fed money creation, and lender of last resort privileges at the discount window.