12/8/2011 Portland, Oregon – Pop in your mints…
Today the world witnessed one of the most surreal spectacles that we can imagine. John Corzine, former CEO of MF Global, the Primary Dealer which went bankrupt on October 31st and is now missing $1.2 billion of client funds, was called on to testify by a group of men in the US Congress who are trying to understand what went wrong and how they can prevent it from occuring again.
You can see the agonizing hearing in all of its glory by clicking the link below. Our humble observations:
1. Neither Mr. Corzine or Congress said anything that should give any measure of confidence to participants in the global financial markets.
2. Mr. Corzine is sorry this happened.
3. One of the members of the panel stated the obvious “we got to find that money.” Understatement of the year.
4. Mr. Corzine is so confident that the client funds will be recovered that he mumbled, after being pressed by a member of the panel, that he and the other executives would personally reimburse clients in the event that it wasn’t (NOT!)
5. Questions about the Federal Reserve’s ability to properly vet firms who are qualified to be Primary Dealers.
We didn’t know whether to laugh or cry. Mr. Corzine looked like a large elf from the camera angle and the members of congress, in most cases, sounded less than up to the task of understanding what happened, much less being able to craft legislation which would prevent a similar event in the future.
It was like watching political professional wrestling. The entertainment value was fairly high, excitement filled the room, but it left you wondering if what you saw was real or simply scripted and well acted by all involved.
All in all, it was a synopsis of the level corruption and ignorance that grace the halls of power in America circa 2011.
See the entire sorry spectacle courtesy of C-Span: http://www.c-span.org/Events/Fmr-Senator-Corzine-to-Testify-in-MF-Global-Investigation/10737426111-1/
Perhaps now the Farmer and the Cowman will befriend each other, grab their pitchforks, and storm capital hill until their $1.2 billion is returned.
Stay tuned and Trust Jesus.
Key Indicators for December 8, 2011
Gold Price Per Ounce: $1,706 PERMANENT UNCERTAINTY