Monday, November 21, 2011

The MF Global Ponzi Scheme and why they fell while others still operate

Here is another side I am hearing about regarding MF Global.

All of the banks and financial institutions today have offshore hedge funds, or two sets of books. When the regulators come by to do their cyclical assessments, all the toxic assets get moved to the hedge funds, or off the standard books and into a holding company, making them look solvent, or even good.

What happened perhaps with MF Global, is that they were inspected by a regulator and didn't have TIME to move their primarily accounting offshore. Thus, regulators saw the MF Global ACTUAL numbers, and TSHTF.

It also caught them red handed in a ponzi scheme... as they had been using customer money for awhile, and since most investors keep their accounts long-term, they only had to payoff individuals on an occasional basis, which meant they could channel enough money from elsewhere.

Except Corzine had leveraged the company 50-1, and bought billions in Euro trash bonds. Now, here is the REAL conspiracy theory.

No economist or financier with half a brain would be buying these, except that MF Global was a primary dealer. Guess who probably FORCED them to take on these toxic and worthless assets?

The Fed. As a means to covertly bailout the ECB, which is lockstep with the FED and all other central banks anyway.  Corzine is a former head of Goldman Sachs, and pure and simply, is a tool of the central bank.

I don't know which regulator broke protocol and caught MF Global with their pants down... usually the regulators give institutions ENOUGH err... ahem... warning they are coming over, and enough time to fudge the books to offshore, but this is probably why you are not seeing any real investigations or indictments yet.

The Fed is running this show, and Obama, Geithner, and Holder and bought and paid for tooks as well of the kleptocracy.


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