Topic: The Entire System Has Been Utterly Destroyed

[Libertas]

Via Z/H -

http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

 

[Pandora]

BCM Has Ceased Operations (source)
Posted by Ann Barnhardt - November 17, AD 2011 10:27 AM MST

Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,

It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.

The reason for my decision to pull the plug was excruciatingly simple: I could 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. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

...

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.

So, Ann is out.  She wrote last week that the theft of money from MF Global would spell doom for a number of firms, so I'm not surprised.  There is another factor at play here as well:

My Two Personal Action Items.
Posted by Ann Barnhardt - November 4, AD 2011 9:02 PM MST

1. I am finished paying Federal taxes. Enough is enough. I refuse to hand over money to criminals. I refuse to subsidize the covert arming of Mexican drug cartels. I refuse to subsidize the slaughter of preborn children. I refuse to fund the Muslim Brotherhood and other musloid regimes who are engaging in genocide and overt, declared war against me, my country and our allies. I cannot give money to this government in good conscience any more than I could give money to the Third Reich in 1941. It is now to the point where supporting this government is very, very likely a mortal sin. God is first. God is first. God is first.

2. I will be moving my money out of the mega-banks in favor of small, locally owned banks and credit unions. Enough is enough.

I have made my decision, and let it now be done to me according to God's will.

About an hour ago, Rush cited Zerohedge as the source of an announcement that a hedge-fund was throwing in the towel, but I must have missed connecting BCM to Ann, and he didn't mention her by name.

[Weisshaupt]

Wow. Just Wow .

Didn't verify the quote, but this was in the zero hedge comments:

"Do not blame Caesar, blame the people of Rome who have so enthusiastically acclaimed and adored him and rejoiced in their loss of freedom and danced in his path and gave him triumphal processions and laughed delightedly at his licentiousness and thought it very superior of him to acquire vast amounts of gold illicitly. Blame the people who hail him when he speaks in the Forum of the 'new, wonderful good society' which shall now be Rome's, interpreted to mean 'more money, more ease, more security, more living fatly at the expense of the industrious.' Julius was always an ambitious villain, but he is only one man." - Cicero

As some felt is was unfair to just call Obama out, and not Bush and the doezens of other Pols left and right whose corrupt handling of our public affiars has left us in this mess.

[rickl]

Ann's post is going viral.  Denninger and Wretchard have also posted about her.

As for the Cicero quote, I couldn't find it here or here.  Of course, its absence doesn't prove he didn't say it, but it's looking doubtful.

It bears a strong resemblance to the following quote about Obama, which has circulated in chain e-mails:

“The danger to America is not Barack Obama but a citizenry capable of entrusting a man like him with the Presidency.  It will be far easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to a depraved electorate willing to have such a man for their president.”
 
“The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails America.  Blaming the prince of the fools should not blind anyone to the vast confederacy of fools that made him their prince. The Republic can survive a Barack Obama, who is, after all, merely a fool.  It is less likely to survive a multitude of fools such as those who made him their president.”

I spent a few hours one Saturday trying to track it down, and came up empty-handed.  The only thing I found for certain was that it did not originate in an Eastern European newspaper, as is often claimed.  It was already circulating before it appeared in the newspaper.

[charlesoakwood]

Is her name Barnhardt or Braveheart?

I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.

[IronDioPriest]

Sounds like she plans on living off the grid for the duration then. Her list of demands is high. Righteous, but high.

[charlesoakwood]

She's a high minded woman.

[Libertas]

Is her name Barnhardt or Braveheart?

I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.

 

[BMG]

http://hotair.com/archives/2011/11/18/mf-global-the-case-of-the-missing-600-million-gets-murkier/

What happened to the $600 million missing from customer accounts at MF Global, the investment firm run by former New Jersey governor and Barack Obama confidante Jon Corzine?  After three weeks of intense investigation, no one seems able to find it — and it’s beginning to look like MF Global burned through it in an attempt to cover their own losses.

[Libertas]

"If they can’t find it, those “free loans” will look a lot more like embezzling, and there will be a lot of former customers that will be looking for blood as well as money in the weeks and months ahead."

No sh*t?!  Talk about a no-brainer excuse to drag Corzine out into the street for some vigilante justice!  Corzine...Madoff, what's the diff?  None that I can see!

[AlanS]

Corzine...Madoff, what's the diff? 

Fwank, Schumer,.................

[trapeze]

So...Barnhardt goes Galt.

I will be interested, though, to see how that "not paying federal taxes" thingy works out.

[Pandora]

So...Barnhardt goes Galt.

I will be interested, though, to see how that "not paying federal taxes" thingy works out.

Did you read her multiple posts on the issue?  She's quite willing to go to jail.

[warpmine]

So...Barnhardt goes Galt.

I will be interested, though, to see how that "not paying federal taxes" thingy works out.

Did you read her multiple posts on the issue?  She's quite willing to go to jail.

She has little to lose other than freedom and that's relative to what we've got today, ain't much. If I was single alone with nobody depending on me, I would have done what's necessary and let the history be made. I hate this sh*t eating regime worse than Satan.

[Libertas]

So...Barnhardt goes Galt.

I will be interested, though, to see how that "not paying federal taxes" thingy works out.

Did you read her multiple posts on the issue?  She's quite willing to go to jail.

She has little to lose other than freedom and that's relative to what we've got today, ain't much. If I was single alone with nobody depending on me, I would have done what's necessary and let the history be made. I hate this sh*t eating regime worse than Satan.

Because it is evil we see on a daily basis!  We know this devil!

[BMG]

http://ca.news.yahoo.com/insight-anger-mounts-mf-global-clients-see-3bln-190836206.html

NEW YORK (Reuters) - Three weeks after MF Global's collapsed, furious former customers are still fighting for access to billions of dollars as they question why as much as two-thirds of their money is still stuck.

While authorities have touted the fact that they are returning 60 percent of the collateral and cash that had been frozen in the wake of the broker's October 31 bankruptcy, a closer look shows that in fact only about 40 percent of customers' total funds have been authorized for release so far.

[Pandora]

I must not be properly understanding something about finance/bankruptcy law.  It appears customer/client money, even that which is in cash positions, is being withheld to make sure creditors get paid?

That money doesn't belong to MF Global if it's funds simply parked and not invested, does it?  If that's so (and it may not be; I'm going on what I think I understand), how can client/customer money that was illegally desegregated be considered an MF Global asset to be redistributed to any but the rightful owners?

[Weisshaupt]

That money doesn't belong to MF Global if it's funds simply parked and not invested, does it?  If that's so (and it may not be; I'm going on what I think I understand), how can client/customer money that was illegally desegregated be considered an MF Global asset to be redistributed to any but the rightful owners?

The same way Unions got bailed out at the expense of bond holders at GM, and it sends the same message.  YOU CAN'T AFFORD TO INVEST.  This government has made it clear that laws are only for the little people. Its just another gateway to wealth that is closing - because the Administration  will make sure the "right people" always benefit, and most of us will not be " the right people"

Going Galt isn't always going to be a conscious decision.  Most will go Galt  because of the incentives provided.  Work 80 hours, have 60% taken away. Become wealthy and be demonized and threatened with violence.   Hire a new employee, make your businessless productive and costly. Invest your money and loose it because the laws will not protect your rights. How can you be productive if the jobs dry up?  People will automatically adjust to  new situations and incentives, and will drop be degree out of the economy and the productive flow, having never read Ayn Rand, or having consciously thought about doing so.  Who is John Galt?  He is human nature, and inside all of us. And Obama knows this. HE wants the productivity engine to stop. He wants a crisis where millions are angry and starving, because that is the best sort of environment for his fascist demagoguery. Just ask Hilter. Just ask FDR.




  

[Pandora]

That money doesn't belong to MF Global if it's funds simply parked and not invested, does it?  If that's so (and it may not be; I'm going on what I think I understand), how can client/customer money that was illegally desegregated be considered an MF Global asset to be redistributed to any but the rightful owners?

The same way Unions got bailed out at the expense of bond holders at GM, and it sends the same message.  YOU CAN'T AFFORD TO INVEST.  This government has made it clear that laws are only for the little people. Its just another gateway to wealth that is closing - because the Administration  will make sure the "right people" always benefit, and most of us will not be " the right people"

Going Galt isn't always going to be a conscious decision.  Most will go Galt  because of the incentives provided.  Work 80 hours, have 60% taken away. Become wealthy and be demonized and threatened with violence.   Hire a new employee, make your businessless productive and costly. Invest your money and loose it because the laws will not protect your rights. How can you be productive if the jobs dry up?  People will automatically adjust to  new situations and incentives, and will drop be degree out of the economy and the productive flow, having never read Ayn Rand, or having consciously thought about doing so.  Who is John Galt?  He is human nature, and inside all of us. And Obama knows this. HE wants the productivity engine to stop. He wants a crisis where millions are angry and starving, because that is the best sort of environment for his fascist demagoguery. Just ask Hilter. Just ask FDR.  

I observed that, and understood it for what you describe, in the different ways in which GM and Solyndra investors were handled; I just needed validation that I was looking at it yet again.

[charlesoakwood]

The total corruption of the market is why she said:
"No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what [it] is now a massive game of Russian Roulette."