An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, November 8, 2011
Bankrupt MF Global Owes CNBC $850,000
:)
Story here at TV_Newser. They probably now regret all of the "free love" they provided to Jon Corzine over the years.
Corzine was long Eurozone GBs with a trade conclusion of Dec 2012 I believe.
So he was long the GBs over there and the trade went against him a bit and it looks like his banks used that as an excuse and screwed him and cut him off....
A great insider trade would be if you somehow knew that next year the EC was going to proceed to the next logical step and go to some sort of fiscal integration, you could buy the sovereign bonds here and make a fortune if they went to some sort of fiscal integration.... similar to US sovereign debt around the end of the Revolutionary War, the insiders went around buying it up for pennies from the peasants and then the new US Treasury stood up behind it all and the insiders cleaned up...
A bit conspiracy theory oriented I know but perhaps that is the play and the banks decided to screw Corzine instead of share the spoils that are due next year...
you have to wonder why Corzine was long the EZ sovereigns.....
The "conventional wisdom" seems it would have been to be short the EZ Gov bonds... so it is hard to understand why Corzine would have been long perhaps unless he knew (or thought he knew) something....
MMT I believe would say that if somehow the EZ gets some sort of fiscal integration, the GBs should rally. so that may be something to look out for... it would be contrarian and of course this does not look like it is anywhere on the radar at this point.... in fact currently the opposite as it looks like eventually even German bonds will probably come under pressure under current arrangements....
I will continue to look out for any talk about fiscal integration though...
exactly matt....it's definitely something to think about and at least be aware of. If so, this could mark the beginning of the time for "scaling in" positions....but the thing is the timeline on this could be 1-3 years you say. I find it very interesting indeed.
Look for the CME to try to get out of this (claiming fraud or some other BS) and have the govt pay for this....
CME will look at this as the banks got their bailout so where is ours? They wont want to pay for this. They will try to get out of this. These people are relentless.
CNBC will also probably try to get the govt to pay them for the 850k they got stuck for...
yup. once the floodgate is breached...it's all down hill from there.
This is not just a problem with big business...it's also a problem with our government too.
just despicable really.
I feel like I'm living through the Old Testament in Jeremiah's time or something.
"And when your people say, 'Why has the Lord our God done all these things to us?' you shall say to them, 'As you have forsaken me and served foreign gods in your land, so you shall serve foreigners in a land that is not yours.'" -Jeremiah 5:19
Hopefully God will look upon the US as He did upon Jeremiah when He said, "Attack you they will, overcome you they can’t." (Jeremiah 1:19)
Mario, Yes Jeremiah seems to have had special protection of God; perhaps he needed that as a Prophet (not too many of them in history). It looks like, perhaps sadly, we today do not have these specific protections; but we do have the implements provided in Ephesians 6 you might want to revisit if you get down on things...
As far as the prophecies, just quickly (you could write a book), it looks like God's mandate is for smaller, devolved local authority of civil governments, separate languages, state currencies, etc.. (see His operations at post-flood Babel in the OT, Romans 13). He mandates/declares that the nations should stay separate and maintain their individual authority. So of course His Adversary is going to try to swing things the other way.
So you have globalism, "free" trade, union, etc... So it looks like eventually (seems like a long way off at this time) the EU is going to have to form some sort of fiscal union at some point as the next logical step to bring the nations closer together; tear down borders, etc..
Looks like they are going to bring in technocrats to run Greece and now perhaps Italy, as their governments are being destroyed one by one, dominoes are falling; you can see how God's mandate for smaller, separate, sovereign, nations of divided languages is being successfully operated against there.
Perhaps this would be step 1 towards achieving political integration, ie attack representative government as it would seem that representative govt would be a key foundation of political nationalism. get rid of that, and then go for EU wide political/fiscal union.
So this "crisis" may be making it easier for the forces that are working to get to a full political union in the EU. The people over there seem to like the Euro as I read some poll results lately so this macro trend just keeps inching forward looks like.
So once they get these technocrat goons in place in more countries, vice democracy, people get used to it for a while, look for talk of a political/fiscal union to increase, but again this could take a lot more time and much more economic chaos and hardship.
matt thank you. That ephesians 6 is most powerful. thank you.
interesting points about government, etc. I tend to agree with you more than not from the brain in my stomach than the one in my head. We seem to live in an age of synthetics more and more and government is just one more example. The counter-revolution is there of course as well, which is heartening. When I think about it, I see great value in the US national unity, but I think it's about proper resource and power allocation more than anything else that is the point to Babel.
Very interesting your thoughts on Babel. It would be neat to chat sometime about that (probably not on this site I suppose). It's interesting to note that Babel immediately precedes, at least in the narrative of the Bible, by Abram. A most interesting construction indeed I would say! Perhaps the unity and oneness of man was always intended, but not in terms of worldly accomplishments...but instead by a divine seed...
Is MF Global Bear Stearns redux?
ReplyDeleteTom,
ReplyDeleteCorzine was long Eurozone GBs with a trade conclusion of Dec 2012 I believe.
So he was long the GBs over there and the trade went against him a bit and it looks like his banks used that as an excuse and screwed him and cut him off....
A great insider trade would be if you somehow knew that next year the EC was going to proceed to the next logical step and go to some sort of fiscal integration, you could buy the sovereign bonds here and make a fortune if they went to some sort of fiscal integration.... similar to US sovereign debt around the end of the Revolutionary War, the insiders went around buying it up for pennies from the peasants and then the new US Treasury stood up behind it all and the insiders cleaned up...
A bit conspiracy theory oriented I know but perhaps that is the play and the banks decided to screw Corzine instead of share the spoils that are due next year...
you have to wonder why Corzine was long the EZ sovereigns.....
Resp,
I believe Warren said on Mike's show a few years ago that Corzine was "in paradigm" Resp,
ReplyDeletevery interesting matt. very interesting
ReplyDeleteI guess this is what Jesus meant by "when you live by the sword, you die by the sword." God bless us all.
ReplyDeletethis is also interesting and puts anther twist on MFG
ReplyDeletehttp://donmillereducation.com/journal/2011/11/08/special-post-cme-liability-for-mf-global-losses/
Mario,
ReplyDeleteThe "conventional wisdom" seems it would have been to be short the EZ Gov bonds... so it is hard to understand why Corzine would have been long perhaps unless he knew (or thought he knew) something....
MMT I believe would say that if somehow the EZ gets some sort of fiscal integration, the GBs should rally. so that may be something to look out for... it would be contrarian and of course this does not look like it is anywhere on the radar at this point.... in fact currently the opposite as it looks like eventually even German bonds will probably come under pressure under current arrangements....
I will continue to look out for any talk about fiscal integration though...
exactly matt....it's definitely something to think about and at least be aware of. If so, this could mark the beginning of the time for "scaling in" positions....but the thing is the timeline on this could be 1-3 years you say. I find it very interesting indeed.
ReplyDeleteMario,
ReplyDeleteLook for the CME to try to get out of this (claiming fraud or some other BS) and have the govt pay for this....
CME will look at this as the banks got their bailout so where is ours? They wont want to pay for this. They will try to get out of this. These people are relentless.
CNBC will also probably try to get the govt to pay them for the 850k they got stuck for...
yup. once the floodgate is breached...it's all down hill from there.
ReplyDeleteThis is not just a problem with big business...it's also a problem with our government too.
just despicable really.
I feel like I'm living through the Old Testament in Jeremiah's time or something.
"And when your people say, 'Why has the Lord our God done all these things to us?' you shall say to them, 'As you have forsaken me and served foreign gods in your land, so you shall serve foreigners in a land that is not yours.'" -Jeremiah 5:19
Hopefully God will look upon the US as He did upon Jeremiah when He said, "Attack you they will, overcome you they can’t." (Jeremiah 1:19)
sheesh!!! what strange days indeed!!!
Mario,
ReplyDeleteYes Jeremiah seems to have had special protection of God; perhaps he needed that as a Prophet (not too many of them in history). It looks like, perhaps sadly, we today do not have these specific protections; but we do have the implements provided in Ephesians 6 you might want to revisit if you get down on things...
As far as the prophecies, just quickly (you could write a book), it looks like God's mandate is for smaller, devolved local authority of civil governments, separate languages, state currencies, etc.. (see His operations at post-flood Babel in the OT, Romans 13). He mandates/declares that the nations should stay separate and maintain their individual authority. So of course His Adversary is going to try to swing things the other way.
So you have globalism, "free" trade, union, etc... So it looks like eventually (seems like a long way off at this time) the EU is going to have to form some sort of fiscal union at some point as the next logical step to bring the nations closer together; tear down borders, etc..
Looks like they are going to bring in technocrats to run Greece and now perhaps Italy, as their governments are being destroyed one by one, dominoes are falling; you can see how God's mandate for smaller, separate, sovereign, nations of divided languages is being successfully operated against there.
Perhaps this would be step 1 towards achieving political integration, ie attack representative government as it would seem that representative govt would be a key foundation of political nationalism. get rid of that, and then go for EU wide political/fiscal union.
So this "crisis" may be making it easier for the forces that are working to get to a full political union in the EU. The people over there seem to like the Euro as I read some poll results lately so this macro trend just keeps inching forward looks like.
So once they get these technocrat goons in place in more countries, vice democracy, people get used to it for a while, look for talk of a political/fiscal union to increase, but again this could take a lot more time and much more economic chaos and hardship.
Resp,
matt thank you. That ephesians 6 is most powerful. thank you.
ReplyDeleteinteresting points about government, etc. I tend to agree with you more than not from the brain in my stomach than the one in my head. We seem to live in an age of synthetics more and more and government is just one more example. The counter-revolution is there of course as well, which is heartening. When I think about it, I see great value in the US national unity, but I think it's about proper resource and power allocation more than anything else that is the point to Babel.
Very interesting your thoughts on Babel. It would be neat to chat sometime about that (probably not on this site I suppose). It's interesting to note that Babel immediately precedes, at least in the narrative of the Bible, by Abram. A most interesting construction indeed I would say! Perhaps the unity and oneness of man was always intended, but not in terms of worldly accomplishments...but instead by a divine seed...
very neat stuff to contemplate. thanks again.
http://www.youtube.com/watch?v=4Jzo9frkcKg
ReplyDeletea victim speaks out....