Who lost my $1.2 Billion? We all make decisions each day. So you can certainly decide where your money is invested. And you might call yourself an investor if you are giving your money to the stock market or some wonderful brokerage firm, but really that is misguided trust. This is a true definition of a speculator. Speculators invest blindly to the wind and hope that they will get something in return. They do not control their money so not only are they at risk to market changes but also ethics risks as well. Why trust someone else when you should be educating yourself. Who do you trust yourself more or Wall Street? And it really does not matter if the investment firm or the investor is small or large, everyone wants your money. No one invests to lose. Some do it "legally" and others have more sophisticated scams.
Everyone knows the demise of MF Global the 8th largest bankruptcy in US history and Jon Corzine, the former Governor of New Jersey and Senator. Jon Corzine made huge sums of money by attaining a lofty position of Goldman Sachs, he rose to the position of Chairman and CEO working his way up the corporate structure. In 1994 he successfully converted a private company into a publicly held company. Corzine proposed a bailout plan for Long Term Capital Management, a leveraged fund company that was being troubled for a $4.6B loss on Russian investments that went bad. Bad actors often get bailed out by other financial firms but in this case Corzine had a rival, Henry Paulson his co-CEO and co-Chairman at Goldman. Yes this is the same guy that bails out AIG that ultimately sends $12.9B to Goldman Sachs in 2008 when he holds the post of 74th United States Secretary of the Treasury. But in this case Paulson is able to remove Corzine. Later Corzine cashes in on $400M in Goldman stocks and these funds help him purchase the senate and governor offices in New Jersey. He joins MF Global as CEO in March 2010. It's too early to tell how much knowledge that Corzine has of the vast amounts of money that was lost.
MF Global started in the sugar business in 1783. In the 1980's they transformed into the financial services and were a major brokerage house for derivatives, futures, options, currency exchange, over the counter products, derivatives and was a primary dealer of US Government Treasury Securities. MF Global has reached the pinnacle of success in 2011 and then fell like a house of cards in the same year. In February of 2011 they were approved as a primary dealer for US Government debt that connects them directly to the Federal Reserve system, in October 2011 they declared bankruptcy. MF Global in 2010 claimed to have $42.46B in assets which includes $5.45B in customer funds. They admitted to have comingled their funds with customer's funds and wire transferred $175M in customer funds and $700M of customer accounts on Oct 28 2011 to its UK subsidiary. This created a short fall in accounting of $891,465,650. The damage might not be isolated to this transaction only the accounting seems to be pointing towards a larger deficit of $1.2B. Corzine declares that he has no idea where the money went. It really does not matter when it's not your money. MF Global was using complicated repo methods in accounting that leveraged their money and customer funds together. This is an example of the stewards of our capitol sending our money overseas to "help" the debt issues created by Europe's self-inflicted dramas. If you are a student of history the exact same things happened that helped to create the Great Depression when millions of $ of gold was exported to help the UK's debt crisis. Just change the year it's reenacted all over again. We all need to understand our history in order to set our plan for the future. Dilution of our US $ to other countries is a form of quantitative easing at a global level. It devaluates our value but moreover gets the US tax payer to foot the bill of the less fortunate, this is the socialization of our world.
You might ask why is this all important to you? You wanted to know how bad debt in Europe affects the average tax payer, it's all outlined here. We are clearly led by a power elite system that does not have your better interest at heart. If you are a stock, mutual fund or 401k investor you are in fact a speculator. Wall Street makes thousands of trades of your money and you are allowed to make 1 fund change a month. Is the definition of control that your financial planner tells you? Is this a system that works for you? You don't have control of your funds and have no idea what the investment fund or mutual fund is doing with your money. Gain greater control, I don't want to manage your money, what is really important is for you to build your own financial intelligence and work towards your own agenda. Who is a better steward of your money other than yourself? Yes we all work hard at your J.O.B. (Just Over Broke) and as Asians we try extra hard at whatever we commit towards, that is wonderful. So it's pretty simple, stop committing your mind, spirit and soul towards a job or a speculation and start increasing your own financial intelligence. Start your financial education today and start getting your money to work towards your goals instead of lining the pockets of a European leader that only knows how to spend wealth on Socialist programs.
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