Well, it's not so much because MF Global collapsed. I am thinking more because, as Ann Barnhard comments, the rule of Law no longer seems to apply. Customer funds are no longer segregated, nor are they sacred. Instead of protecting a customers liquidity like they are commanded by law, they froze accounts, prevented people form exiting positions, and limited the flow of information.

Can you just imagine if you had engaged in a quick contrarain swing trade going against the trend right when this happened? You would not only be wiped out, but you could easily owe more than all of your assets combined. They would take your house, car, and probably have to sell your kids on the Russian black market.

This was not just a collapse of a bad FCM. It was a clear demonstration that the markets themselves have lost thier integrity.

So, where does that leave us? Do we take the gamble that the FCM we are with is more stable? How do we even know the actual health and fitness of the FCM we are clearing through?

We apparently have nothing backing us. The entire thing looks to be one big huge illusion at this point.

So, do we play the illusion, and hope we can somehow pull it off and succeed anyway?