MF Global went down in October and the government which can sniff out weapons of mass destruction thousands of kilometres away in enemy territory, still cannot figure out what happened to $1.2 billion in its own back yard. These outcomes are perfectly understandable when one is not searching for the truth.
But without being callous to the predicament of investors in MF Global, does it really matter what happened to the money?
In my view it matters not one iota given that the USA experiences the equivalent of three MF Global events each and every day of the year with a Federal deficit of $1.3 trillion in 2011. And three MF Globals per day is just the start given the additional issues with State and local finances, poorly performing pension plans, educational debt, the mortgage woes of borrowers and the despair of the unemployed.
According to one source, MF Global had 50,000 active commodities accounts and 400 securities accounts. The average loss against these accounts is $23,809 per customer and to date a number of class actions have been initiated.
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