Another "forget the farmers and other customers who are currently being screwed by MF" reaction. Instead, we'll try to prevent another scenario that's similar. Of course, the next time it will probably play out differently and they'll be caught with their pants down again. Black Swanism 101.
MF Global: Trail Growing Cold - 'No One to Blame"' http://jessescrossroadscafe.blogspot.com/2012/02/mf-global-trail-growing-cold-no-one-to.html
=========== Good points mr MM. Figured also farmers/ranchers are some of the CME's best/profitable customers. Most farmers have so much to do; they really do not have the time to studyprice trends, much .Even though they know seasonals like real wise. Plus farmers, for example, on paper/on purpose give 10% more than they have to.{apple bags say weigh 3 pounds, but most all apple 3 pound bags weight 3.3-4 pounds.LOL but true]Plus most farmers believe in God/tithe/prayer for rain... Corn farmers/wheat farmers did not seem to like it; they're selling hard....... have beenselling for some time. Bean farmers like it, or at least the long term trend is UP.LOL Plus my CPA told me farmers still send cash thru the mail........................................................................
WTF is $25K of segregated insurance really going to protect? Even in the MF debacle, trades were still guaranteed. No one lost money on positions held in accounts. The problem was with excess cash traders had in their accounts. Is CME in the banking business now providing FDIC type coverage for client funds deposited and held by their members?
The way to protect farmers would be to put the shitbag Corzine and his criminal coworkers in jail. Not only that but there should be prosecutions against all those who failed to regulate MFGlobaL -they should be charged with criminal negligence. It's a bit late for the CME to be riding to the rescue after the disgraceful role they played in this affair. Is one angry soundbite by Duffy and the promise of $100m supposed to make things better? He promised safety in segregation and much bigger funds to protect traders in the past and that turned out to be total bullshit.