Ann has several more posts up regarding MF Global and CME's potential
collapse, and of course the inferred domino affect.
http://www.barnhardt.biz/[blockquote] So, if Mr. Koutoulas is accurately recounting the words of Terry Duffy, and I have no reason to think that he isn't, I was exactly right in my letter. The CME has an $8 billion default slush fund which could have made the MF Global situation go away INSTANTLY. The CME could have stepped in, essentially taken over the firm, squared the books, and then sold the firm intact with customer integrity completely maintained. They have done it before. Many times. In fact, that is the base, root function of the CME. It is also their moral and legal obligation because the CME was the entity that was charged with auditing oversight of MF Global. MF Global was under the regulatory auspices of the CME on the private side, and the CFTC on the government side. The CME was liable and thus failed, and failed CRIMINALLY in their fiduciary duty.
But why? They had the money ready to go in a reserve slush fund for a situation EXACTLY like this. Why didn't they do it? Because they KNEW and they KNOW that MF Global is, as I said, the mere tip of the iceberg. ...
& scrolling down to:
On Cascading Counterparty Risk & Economic Treason
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6104Dawn comes a little light.
I just renewed my electric contract. Here, you may enter into contract with one of several
providers. The contracts offered (there are signing incentives such as frequent flyer credit
or cash cards etc) are mostly from month to month up to 18 months maybe more I didn't look.
So I made my choice and have locked in my electricity rate for the next year. If what she is
saying comes to pass my electric rate will not only increase due to risk and extra operating
costs, it will vary month to month.