Monies and Positions Are Not Safe
by Simon Black: Can
You See This Gorilla?
Barnhardt Capital Management is a futures brokerage firm that focuses
on agriculture, round-the-clock broker access, and inexpensive commissions.
At least, it used to be.
its operations yesterday after six-years in the business. The firms
founder Ann Barnhardt posted the reasons online for the entire world
no longer tell my clients that their monies and positions were safe
in the futures and options markets, because they are not. And this
goes not just for my clients, but for every futures and options
account in the United States. The entire system has been utterly
destroyed by the MF Global collapse.
further explains that markets are completely fractured
the rule of law in the United States no longer exists. She decries
Jon Corzine of MF Global for having outright stolen customer funds,
and various exchanges and government regulators for having frozen
out customer accounts as a result.
the entire industry is suicidally-leveraged and exposed
to European sovereign junk debt, Barnhardt recommends
that ALL customers withdraw from all of the markets as soon
as possible so that they have the best chance of protecting themselves
and their equity.
agree more with this sentiment. Our Chief Investment Strategist
Tim Staermose wrote just last week that cash is a great place to
be right now
and weve been arguing for months that markets
are completely broken. The markets price discovery mechanism
has given way to rumor and political innuendo.
A real economy
cannot function under such circumstances. With Europe on the precipice
and roughly $600 TRILLION in global derivative notional value lurking
in the system, can a real collapse be that far off?
fund manager Mark Mobius recently said, There is definitely
going to be another financial crisis around the corner because we
havent solved any of the things that caused the previous crisis.
the rest of the article
November 21, 2011
© 2011 Sovereign Man
Best of Simon Black