Four Reasons To Be Even Less Optimistic About The Global Financial System Than You Were Last Month
The cracks in the ice are getting bigger. At this point it is really hard to have much confidence in the global financial system at all. They told us that MF Global was an isolated incident. Well, the horrific financial scandal over at PFGBest is essentially MF Global all over again. They told us that we would not see a huge wave of municipal bankruptcies in the United States. Well, three California cities have declared bankruptcy in less than a month. They told us that we could have faith in the integrity of the global financial system. Well, now we are finding out that global interest rates have been fixed by insiders for years. They told us that Greece was an isolated problem and that none of the larger European nations would experience anything remotely similar. Well, what is happening in Spain right now looks like an instant replay of exactly what happened in Greece. So who are we supposed to believe? Why does it seem like nearly everything that “the authorities” tell us turns out to be a lie? What else haven’t they been telling us?
The following are four reasons to be even less optimistic about the global financial system than you were last month….
#1 PFGBest Is MF Global All Over Again
Do you remember that whole MF Global thing?
Do you remember how hundreds of millions of dollars of customer funds were “missing” due to “accounting irregularities”?
Well, it is happening again.
PFGBest is a brokerage firm in Cedar Falls, Iowa that mostly handles agricultural futures.
All hell broke loose when the National Futures Association discovered that a bank account that was supposed to be holding 225 million dollars of customer funds was only holding about 5 million dollars instead.
So where is the other 220 million dollars?