I’ve continued to follow the activity on Anne Barnhardt’s blog and came upon this posting from Rick Santelli of CNBC. Along with that is a rather funny/not funny cartoon video that pretty much sums up the fears we are all sharing now.
Oh Oh. "Regulated" Derivative Markets About To Blow Up?
Look folks, the risks involved here are real.
Rick Santelli was just on CNBC pointing out that there have been no answers forthcoming on the MF Global mess. There are reports that several people who you would never expect to have gotten caught in something like this did, including Gerald Celente.
The reason they got caught is the same reason I would have gotten caught if I had been clearing through MF Global: Despite being around the markets since well before the 2000 crash and having successfully negotiated that and the 2008 mess everyone has believed, right up until MF blew up, that customer funds were in fact segregated and thus this risk would never occur.
Simply put everyone has now discovered that this assumption is wrong.