Tuesday, November 22, 2011

The Global Financial Crisis: Here You Go - It's Over!

There has been a lot of information coming out over all the financial news services about the failed MF Global investment funds... Many of the reports coming out about this investment firm are very bad, including reports that ALL of the investors in that scheme have been taken to the cleaners.  There are also reports that entire retirement portfolios across North America have been literally destroyed by MF Global's failing.   However, it is just another in a long line of failed investment firms in a sick system that will continue to fail until the entire system collapses.

Well, it does appear that the long dreaded financial collapse may actually be at hand.   According to this new report from a fellow excellent blogger, Poor Richard, who writes the blog: "Poor Richard's Blog" at www.poorrichards-blog.blogspot.com , entitled:  "Here You GO: It's Over", the failure of MF Investments may be the start of a massive bank run that could finally see the end of the crooked massive debt based Ponzi scheme financial system once and for all.  Here is Poor Richard's article, and I have my own comments and views to follow:

Tuesday, November 22, 2011

Here You Go: It's Over

We're done folks.

CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.

That's the end of it.  The belief that there are more MF Globals has now taken hold.  The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.

The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk.

The market is done folks.  You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.

We're there folks.

Oh sure, there will be rallies and there will be selloffs.  But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.
This isn't just about speculators - it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.

More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe.

The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.

Well folks, then none of your investment accounts -- not your IRA, 401k, not even your bank account -- is safe.

Diversification is a strategy but the risk remains.  It is up to you to decide how much you're willing to risk losing to a crook.  If the answer is "none" or you cannot reduce the at-risk portion of your assets to what you're willing to lose to fraud then you can no longer participate in the market at all, in any form, nor even do business with a bank.

That sucks, but it is what it is and if this meme spreads -- and it will until it's stopped -- we run the risk of a "sudden stop" economic event.

I hope you're ready for it -- I am to the best of my ability, and you ought to be.

NTS Notes:  Yes, this article paints a pending situation of doom and gloom that even I may not fully agree with but evidence is clearly showing that a full collapse is at hand.

The major problem has always been that the general public did NOTHING for years to stop these swindlers from ruining the entire financial system.  Only now with the entire bottom falling out are most people finally taking notice and asking: "What the HELL happened?", but are way too late to stop their own slide into financial oblivion.

It is true, as shown in Poor Richard's article, that the government could have stepped in years ago and put a halt to the impending implosion of the entire scheme, but many of the swindling selfish members of our governments were also involved in the fleecing of the public purse in pursuit of their own personal greed.

So the questions become.. What should be done about this situation?   The obvious solution is to let the entire crooked system collapse and then rebuild a new system that does not incorporate the disastrous machinations of the old, including criminal private banking using debt based currencies, fraudulent investment schemes, and the use of  DERIVATIVES! 

History has always shown that any nation that bases its finances on debt eventually implodes... What is happening is nothing new, and just a repeat of that cycle.   Will people ever learn?

More to come


1 comment:

thegreatpurification said...

'Tis but a little thing, but the article is by Karl Denninger and was merely posted at poorrichard's blog.

Carry on...