Time for my weekly rant about Corzine, Obama and MF Global. Reminder- MF Global, led by Obama best bud John Corzine, not only went bankrupt, but it took with it $600 million of client funds which were not its property. In the real world we'd call that theft, but Washington Democrats ignore it and Washington Republicans.... ignore it too.
This could be the issue that Republicans use to point out that the massive Democrat financial reset ("so that we'll never again have another financial crisis"), in the form of 2000+ page Dodd-Frank, really didn't stop business as usual, but it instead just kept Obama's buddies in business. It could be the issue that Republicans use to tie Obama specifically and Democrats in general to Wall Street crony capitalism, but... no, that would be too useful. In the last week, as news breaks daily about MF-Obamagate, there have been a grand total of 2,840 news articles for the search heading "MF Global Corzine". There have been 149 articles mentioning "MF Global Corzine Obama". For comparison, there have been 1,130 articles about Newt Gingrich and Freddie Mac in the last 24 hours alone. There have been 15,200 articles in the last week about "Herman Cain sexual harrasment".
Well, here's some of the latest:
- MF Global admits it doesn't know what happened to all that client money. (By the way, note that the head of the CFTC, Gary Genzler, has recused himself from the investigation because of his close ties to Corzine. Note further that said head of the CFTC was appointed by Obama.)
- More than 1,000 MF Global employees have been laid off.
- Another commodities firm has shut its doors because- well, read this:
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.
Republicans, WHEN are you going to treat the MF Global fraud like an important issue which sheds a most useful light on the incompetence (or rather, corruption) of Obama administration financial regulation? Democrats are positioning this and all other financial crimes as failures of capitalism, and you're doing nothing. Regulatory capture and theft are NOT failures of capitalism.