(Full article linked below)
Tonight's Issue: Continued Participation or Not
Posted Nov 21, 2011
"So I have to say a few more words about MF Global this weekend and put my other commentary on the cutting room floor. This is important."
"The usual sequence of events in a bankruptcy such as this would be to do a bulk transfer of all the accounts to a solvent broker."
"It has been long assumed that the exchange acts as a guarantor of all exchange members, MF Global being one. These ideas are all breaking down now right in front of us."
"I see this event shaping up as the beginning of the end. It is the beginning of the loss of all or any remaining legitimacy."
"Customers are supposed to and need to remain wholly solvent and able to trade the entire time. This is the way this system is supposed to work. This is the way it has worked for decades. By it working this way it has allowed the development of what we have today."
"This is a regulatory fail, a moral fail, a political fail, a system fail and overall an epic fail. All the way around I hear bells and buzzers ringing."
"It is shaping up as a theft so large it is not even being recognized by the governments, courts their media and regulatory bodies as a theft."
"There is no hesitation to rip people off because there are no consequences for doing so."
"MF Global is developing into a much bigger deal than people are allowing for."
"The path it is going down is not a good one. The path this is going down argues for non participation."
"...this event is setting a precedent."