The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
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Now I thought, is former New Jersey govenor Jon Corzine Jewish? Well maybe he isn’t; but his wife, Sharon Elghanayan is; and back in October of 2009, Jewish State Sen. Loretta Weinberg told a small but enthusiastic crowd of Jewish supporters in Woodbridge that they should elect her running mate, Gov. Jon Corzine, because his “core values” were in line with Jewish values.
Weinberg added, at a National Jewish Democratic Council fund-raiser held at the law firm of Wilentz, Goldman & Spitzer, that Corzine “reaches out to all the social concerns we as Jews and Democrats support … I’m proud to be the first Jewish grandmother running for lieutenant governor and to be able to run for office as Jon Corzine’s partner … Jon Corzine is the right candidate for the Jewish community … He is pluralistic and supports many issues important to the Jewish community — reproductive freedom, gay rights, keeping prayer out of public schools.”
Another hypocrite, co-chair, Larry Stempler of Livingston, said Corzine has a strong stance on ethics reform. “He and Loretta stand for integrity and decency [and] his values are inherently Jewish values oftikun olam,” said Stempler, “Health care is high on his list [along with] stem cell research and divesting from Iran.”
Roy Tanzman of Kendall Park also said Corzine shared Jewish values, saying the governor strongly supports education. “He’s always been there for the Jewish community,” said Tanzman, president of the NJ State Association of Jewish Federations, who attended the fund-raiser in a private capacity.
Weinberg cited the governor’s humble beginnings as the son of sharecroppers who worked as a day laborer to put himself through college, eventually becoming CEO of Goldman Sachs.
“He knows he is privileged and wants to give back to the people of New Jersey,” she said. She drew laughs when she added that while Corzine is Methodist, “he must have some Jewish blood because we share the same values.”
Weinberg also stressed Corzine’s strong support for Israel, noting “he had made the New-Jersey Israel Commission — of which she is a member — an official entity within the Department of State and increased investment in Israel Bonds.”
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