Precious Metals, Bitter MF Global Investors –

This was bound to happen. MF Global is the first of what will be many CME metals warehouse defaults.  The MF Global clients will take a 28% haircut placing their faith in the CME’s oversight mechanisms, according to Barrons:

Barrons also reiterates that the CME still has not committed to back stopping the lost MF Global funds. Why any honest and informed person would continue to trade and store precious metals with the CME is beyond our limited comprehension.

Whether the missing MF Global client monies are eventually located, placed by the CME, replaced by Corzine and his accomplices, or not all, irreperable damage has been done to investor confidence as far as commodities go.

Equities won’t be far behind.