Is the failure of MF Global similar to the failure of Bear in that it is signaling deep problems with liquidity in the shadow banking system? Here are three posts that explain some of the issues (first post) and details (second and third posts).
Danger Lurks in the Shadows
by Mark Thoma at Economist's View
Has The Imploding European Shadow Banking System Forced The Bundesbank To Prepare For Plan B?
by Tyler Durden at Zero Hedge
Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else
by Tyler Durden at Zero Hedge
"Tyler Durden" is a pseudonym used to keep authors who do not wish to reveal their identities anonymous. The author of this post seems quite knowledgeable about shadow banking. Take it for what it is worth.
UPDATE: Here is a short explanation of re-hypothecation
MF Global and the great Wall St re-hypothecation scandal
by Christopher Elias (UK) at Thomson Reuters New & Insight
