muses of the moment

January 25, 2012

Bad things always happen in “secret meetings”

Filed under: MF Global bankruptcy, Odds 'n ends — totallygroovygirlfriday @ 6:22 pm

Click here for an update on the MF Global crime scene and learn how MF Global, which filed a fraudulent bankruptcy to benefit JP Morgan, will be used as a blueprint to screw you out of your money running through another trading company, like MF.

Comments from Jesse at Cafe American:

What seems fairly obvious is that the law calls for MF Global to file a Chapter 7 bankruptcy in which customers are given seniority to creditors, rather than a Chapter 11 non-broker bankruptcy in which the customer interests are not upheld.  The rationale for Chapter 11 has always seems to be contrived to favor a particular creditor bank.

Prior CFTC rulings and ‘Rule 190’ seems to have dealt with this in the past.  Statements by various CFTC commissioners of late also seem to suggest that customers absolutely have a senior claim to any assets.

Why then did the SEC, with Gary Gensler’s purported assent, seem to ignore the precedent and their own rules and cut a deal in a secret meeting to favor the Banks, specifically JP Morgan?

And from

In other words, when the SEC threw the liquidation process to SIPC under for a Chapter 11 securities liquidation, and with the CFTC’s immediate agreement (under the conflicted Chairman Gensler who had not yet to recuse himself  from MF Global issues), a framework of law was chosen where customers were — for the very first time ever — made creditors and their assets thrown into the entire MF Global estate.   Many say what!  And the industry is now asking how?

Yes, how? Now the industry is very interested. It is finally dawning on commodity investors (that are not a Big Five Bank) that they can be screwed out of their money at anytime in the future. This is a game-changer and a complete loss of confidence in the US trading financial system.

Unless the government and its regulars does something pretty quick to restore confidence, the next “MF Global” (which could be anytime as Greece officially defaults in March) will bring about a stampede of investors pulling their money from US brokerage firms. When there is a loss of confidence in the rule of law in the markets, investors do anything to protect their capital, even pull out of the market completely. Large amounts of money have already left US commodities houses. As this story finally gets some press (on the internet), more will follow.


Filed under: Gold and Silver Investing — Tags: — totallygroovygirlfriday @ 3:43 pm

Gold just jumped $40. Click here.

Latest Release from Martin Armstrong dated January 25, 2012

Filed under: Martin Armstrong, Odds 'n ends — Tags: — totallygroovygirlfriday @ 12:15 pm

Click here for Martin Armstrong’s latest release entitled TSA dated January 25, 2012 (2 pages). Martin comments on the reduction in trade and travel from the Patriot Act and Homeland Security agencies, like the TSA.

Latest Release from Martin Armstrong dated January 23, 2012

Filed under: Housing Market, Martin Armstrong, Odds 'n ends — Tags: — totallygroovygirlfriday @ 12:11 pm

Click here for Martin Armstrong’s latest release entitled Real Estate Global View dated January 23, 2012 (36 pages). Martin discusses the historical impact of real estate value on economies. He also hands the commentary on specific global markets to Petra Gajdosikova.

Groovygirl has one comment on Petra’s thoughts on the US Housing Market. Petra is coming from a global investing perspective. US real estate is a good investment in the largest losing markets for foreigners and for those US investors who are looking for passive income  in real estate. However, the US real estate market will go down more long-term. An investor can write those losses off (and take deprecation losses) against earned income. But as a homeowner, you can not do that. Be aware of this fact before purchasing a house for residence with a large amount of debt.

Just like Macavity; it’s not there

Filed under: Odds 'n ends — totallygroovygirlfriday @ 1:19 am


Tepco drills hole in the nuclear reactor containment. Radioactive fuel (that is supposed to be “under control”), is missing. It’s not there!

Click here for more updated information on the Japanese Nuclear Disaster.

Macavity, Macavity, there’s no one like Macavity,
For he’s a fiend in feline shape, a monster of depravity.
You may meet him in a by-street, you may see him in the square–
But when a crime’s discovered, then Macavity’s not there!

Click here for the complete poem and please read aloud with a British accent.

Feel free to apply T.S. Eliot’s poem, Macavity, to MF Global as well.

Side musing:

T. S. Eliot is one of groovygirl”s favorite British poets. Milton is gg’s favorite. Shall I start quoting Paradise Lost as a juxtaposition to the continuing Global Economic Collapse? No, gg won’t bore you to death. However, the large number of Greek Mythology and Biblical Christian references would fit in perfectly with the European debt crisis that is currently springing from Greece and Italy! No, no, gg will refrain.

Ah, I have it. groovygirl will juxtapose T. S. Eliot’s The Hollow Men to the Global Financial Meltdown.

This is the dead land
This is cactus land
Here the stone images
Are raised, here they receive
The supplication of a dead man’s hand
Under the twinkle of a fading star.

Better yet…..The Hollow Men as read by Col. Kurtz in Apocalypse Now.

There is a fabulous thesis paper in there somewhere.

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