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Here You Go: It's Over
Asheron
Posts: 1,229 Forumite
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.
http://market-ticker.org/akcs-www?post=197878&page=1
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.
http://market-ticker.org/akcs-www?post=197878&page=1
As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.
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Comments
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Stuff and nonsense.
And Ash, if you want to be taken seriously on the forum, how about posting something that is your own thoughts and words, rather than something cut and pasted from a website with awful fonts.
Has anyone ever noticed that the wackier the thoughts expressed by a website, the more ridiculous and amateurish their design and use of fonts is?0 -
bendix - it makes it seem more BELIEVABLE, don't you think????I am an IFA, but nothing I say on this forum constitutes financial advice. Always draw your own conclusions and always do your own research.0
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Stuff and nonsense.
And Ash, if you want to be taken seriously on the forum, how about posting something that is your own thoughts and words, rather than something cut and pasted from a website with awful fonts.
Has anyone ever noticed that the wackier the thoughts expressed by a website, the more ridiculous and amateurish their design and use of fonts is?
These are my thoughts otherwise I would not have copied and pasted this article...
Nonsense?
Do you actually know what has happened regarding MF Global ?As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.0 -
bendix - it makes it seem more BELIEVABLE, don't you think????
Yea a bit like this on your signature..........
I work in the Financial Services industryAs an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.0 -
Deleted - wrong post0
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These are my thoughts otherwise I would not have copied and pasted this article...
Nonsense?
Do you actually know what has happened regarding MF Global ?
Yes, I know what happened regarding MF Global. Does that automatically mean every other ifnancial institution is the same?
Did the collapse of Enron, lead to the subsequent collapse of every energy trading company? Did Deloitte survive the collapse of Arthur Anderson? Your logic is ridiculous.0 -
Yea a bit like this on your signature..........
I work in the Financial Services industry
I don't really get your point?
Derivatives, particularly uncovered futures/options are pretty murky, but people act like this is a new phenomenon, the Chicago Board of Trade (one of the early modern futures exchanges) has been around since the mid 1800's.
MF Global went bust because they were a poorly run company, that understated the risk to their capital (as far as I can tell), much the same way as Lehman or Sterns (only slightly different sector and much smaller)I am an IFA, but nothing I say on this forum constitutes financial advice. Always draw your own conclusions and always do your own research.0 -
I was sadly expecting to have the post end in "So we should all buy gold".0
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I was sadly expecting to have the post end in "So we should all buy gold".
Yes buy Gold
Protect your wealth from inflation...As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.0 -
IRA and 401k? How very American.
The most worrisome thing about the OP is that it sounds like capitulation is at hand and so will be time to buy. Can't it wait a bit? I haven't started to buy prezzies yet and I might get carried away...Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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