This MF Global Explanation Video gives a brief understanding of what happened to MF Global and why it has serious ramifications across the financial sector. For a dire warning from someone who understands this situation way better than I do, I recommend listening to Jim Sinclair here. We’re continuing a series of videos which can be found here.
Today, we’ll look at factors surrounding the bankruptcy of MF Global. This is a company that has existed for a long time making a good business in a very conservative and low risk way. Jon Corzine recently came in and decided to leverage the company to the hilt and bragged to Wall Street that he was going to be extremely aggressive. That’s all fine, but what he wasn’t telling people is that he was going to illegally use the money of all the traders who had cash custodianed with MF Global in order to make those risky trades for the firm. We don’t fully understand all the details of how future trading custodianship works, but we wanted to make this video to give what understanding we do have (or think we have). It’s an ongoing case, so all the details are not public, but what has come out gives reason tho be very concerned for the inherent stability of the entire financial system as a whole. Here’s the video below…
We hope you enjoy this video. If you have not seen The Coming Storm video, you should do so immediately
to have a fuller understanding of what lies ahead. You can do so for free by going here. Please let us know what you think of this presentation or if you have any questions, leave them in the comment section below.
This is the third in a new series of Economic Update Videos. You can watch the previous videos at: 1) European Debt Crises, 2) European Debt Crises 2, 3) MF Global, & 4) Gold & Silver Pt 1. You can see the most recent set of Economic Update videos at: 1) Europe Economic Update 1, 2) Europe Economic Update 2, 3) Europe Crises Explained, 4) World Economic Update, 5) US Economic Update, 6) US Economic Update 2, 7) US Economic Update 3, 8) Hyperinflation Signs, 9) Hyperinflation, Inflation, or Deflation?, 10) Gold Update, & 11) Gold & Silver Update.