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Second MF Global Unveiled As Canadian Regulator Accuses Barret Capital Of Commingling Client Funds
When we learned of the MF Global client theft scandal, in the aftermath of its sudden bankruptcy filing, the one thing we predicted would happen (in addition to Jon Corzine never going to prison) was that many more brokers, banks and broadly financial intermediaries would be discovered having dipped in client accounts, or otherwise "commingled" capital in direct violation of the first rule of banking. Sure enough, a little over two months since, the second notable company to have been alleged to have abused client capital for own purposes has emerged. And it comes to us courtesy of sleep Canada whose "banks are all fine." As the Winnipeg Free Press reports, "One of Canada's investment regulators has accused Barret Capital Management, a firm specialized in futures and options on metals and other exchange-traded commodities, of using client money for its own purposes. The Investment Industry Regulatory Organization of Canada warned Monday that Barret clients are at risk due to the firm's "ongoing misappropriation of their money to fund losing trades and ongoing misinformation about the value and holdings in their accounts." IIROC has set a hearing for Tuesday morning to suspend Barret's membership in the organization and stop Barret from dealing with the public. In requesting the expedited hearing, the regulator alleged Barret made "significant misrepresentations to clients including through manipulating account values, misrepresenting account values and holdings by way of false account statements or otherwise providing false information to clients and by manipulating on and off book payments to clients." Where the story gets even more interesting is when one takes a look at just what it is that the company engages in, and how it fits into the scenario analysis conducted in the MF Global aftermath.
From the company's blog, which has all about 5 entries:
Barret Capital is an Investment Dealer that specializes in futures and options on metals, energies and all other Exchange-traded commodities, located in Toronto Ontario.
And the website's About Us section:
Dedicated to guiding commodity investors in Canada to safer, more focused investments in hard assets like gold and silver
Buying hard assets like gold and silver will protect you from the instability of today's market place. As a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investors Protection Fund, we are a full service boutique firm dedicated to guiding novice and experienced commodity investors in Canada towards smart investments, including buying and selling gold, silver and other hard assets.
Our expert brokers, staff and management will guide you from beginning to end, ensuring that you become an educated commodities trader who makes more profitable trades in the exploding gold, silver and commodities market.
We offer our commodity investors in Canada the following services:
Buying and selling gold, silver, and other commodities
Buying in derivatives or hard assets
Providing on-demand market quotes
Offering delivery and storage options
Placing stop-loss orders
Offering online account views
Providing regular research reports
Consulting from bullion specialists
Liquidating holdings
If you are a commodities investor in Canada, contact us today to learn more on how buying and selling gold and silver can help you profit from a booming commodities marketplace.
And finally, per the President's message, the fallout may next impact carrying broker Laurentian Bank:
At Barret Capital Management Inc., we pride ourselves in being a full service, commodities futures Investment Dealer located in the heart of Toronto, Ontario. The decision to choose Laurentian Bank Securities as our carrying broker was an integral one, as Barret Capital Management Inc. is able to provide its clients with the best of two worlds: personal attention to your financial objectives that you'd expect from a boutique commodities futures firm, along with the breadth of knowledge, information and integrity that a large carrying full service brokerage bank can provide.
Our Toronto commodities futures brokerage is special because we believe in building real relationships with our clients. At the end of the day, taking care of your individual interest is at the core of everything we do.
What all this means is that as expected MF Global may have been the first, but certainly will not be the last, to use client capital to prop up its books. And while Barret is not Goldman, it is merely the next company which could no longer perpetuate the lie. Of course, the bigger one is, the harder it is to be caught. Once caught, however, the ripple effects spread fast and furious.
In Barret's case, this latest incursion in fiduciary duty will simply make paper investors even more skeptical of keeping precious metal "investments" in a paper intermediary, something we warned about when we discussed the fallout from MF Global on HSBC gold claims. Because those too are just the beginning.
Finally, while still unclear what the premise behind the regulatory allegation is, readers will recall our final warning that as in MF Global's case, the fundamental weakest link in the system, was the rehypothecation of assets to make funding appear sufficient and credible, when in reality it is nothing but hot air. Specifically, we said: "Canadian banks, which as it also turns out, defended themselves against Zero Hedge allegations they may well be the next shoes to drop, as being strong and vibrant, yet which have all the same if not far greater risk factors as MF Global."
This was merely the first. We expect many more, Canadian, and otherwise banks, to follow suit, in a world in which broker funding is virtually nonexistent at this moment.
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Liqidating holdings is a service? "We get you in at the top, we sell you out at the bottom. No extra charge - just two commissions. That's all."
So all the paper PM investors will instead pour their money into:
a) Treasuries
b) stock market
c) hookers and blow
Um ... c) ??
Barret Capital's big draw was that they let Canadians store their retirement RRSPs (401K equivilent) in physcial gold and silver. Like MF Global, they were heavily into precious metals trading. The idea was that Barret is the broker that buys the gold on your behalf and verifies the purchase with Revenue Canada, then stores the metal at Brinks.
Like GLD or Mf Global this seems to be another instance of paper gold buyers getting to hold the bag, but without any of the gold inside it.
It's how you get gold in the new abnormal.
Why is Barret's feel good slogan so reminscent of 'change you can believe in' and 'yes we can'
Our Toronto commodities futures brokerage is special because we believe in building real relationships with our clients. At the end of the day, taking care of your individual interest is at the core of everything we do.
Seems he really meant 'taking possesion of your individual holdings is at the core of everything we do'
Bankster rapings know no borders.
My understanding, from talking to many friends in the business -- is that the reason that MF Global was not bailed out early-on is because the commingling of funds is absolutely rampant within the industry. There isn't just one other MF Global -- there are literally hundreds. The whole system is basically unregulated (despite appearances) and there is zero security for individual account holders.
This is the dirty secret which they want to hide -- and which will absolutely see the light of day very soon.
"Your money" and "your account" are essentially meaningless concepts today. Your deposits are being used as "their money" and they have put it at risk with enormous leverage for "their advantage".
Another piece of evidence is that NONE of the major banks condemned MF Global's actions. One would think that if MF Global was engaged in some freak transgression of accounts -- that the responsible players in the industry would step forward and condemn Corzine. Did anyone see that happen? No. Because they're all doing exactly the same thing and they're silently watching to see what happens with MFG.
http://www.youtube.com/watch?feature=player_embedded&v=GMI6JYX2e0Q
(They're ALL commingling funds!)
MUST WATCH INTERVIEW: http://www.youtube.com/watch?feature=player_embedded&v=hGl3QPfB084
Ann Barnhardt: "These sums of money are so huge we are in the realm of mathematical impossibility. You can't unwind this .... Even if you give the risk a 95% haircut, you're talking about sums that exceed the GDP of the United States."
"MF Global was a trial balloon to see what they could get away with. Sadly, what we have now seen is that the people are going to take this. ... These customers are being raped. The customer should have been at the front of the line. These people were not "investing" with MF Global. MFG was acting as a custodian of customer cash. ... They've done this now and there are no torches and pitchforks."
Warren Pollock: "With MF Global we are setting a precedent to allow grand scale theft of public funds to occur."
Dr Ron Paul should give a speech in Florida, as he is not skipping the state, at South Beach.
What an epic seen that would be.
Accelerated revelation season. High scandals abound. No one to trust.
Since it will soon be proven that all "Capital" managers are criminal at one level or another, they will be given a blanket amnesty to re-tire on their own island. Not enough white-collar jails, anywhere.
And just so you all know where China is looking, odd marriages and all, see this little story...China owning the world by proxy.
Reliance Communications Ltd. (R-Com), the mobile telephony arm of the Anil Ambani-led Reliance Group, has tied up foreign debt to refinance the redemption of outstanding foreign currency convertible bonds (FCCB) issued by the company.
In a stock exchange filing, R-Com said that it had raised $1.18 billion from Industrial and Commercial Bank of China, China Development Bank and Export Import Bank of China and some “other banks” to refinance the FCCBs that are due for redemption on 1 March.
There you have it. Buy my Huawei, take my money.
ori
http://aadivaahan.wordpress.com/2012/01/06/truth/
Off Topic but was wondering if anyone had seen this and if aspects of it can be verified:
The American Federal Empire: Change it On The Horizon Part 2
Yes I recognize the intro and parts are very off the wall, but he ties together many events that I am familiar with in a way that is unique to me and worth at least a look into. Unfortunately there isn't a nice index of references to each claim he makes.
LOL - it starts with Benjamin Franklin defending the US fiat system of that time vs King George's gold backed money!
you won't make many friends with this link here
Once a high quality tin foil hat is on, nothign is off topic my friend. Not sure about the cloning thing, but the world as we think we know and the world as it is are quite different.
it's all about polishing one's BS meter to a good shine. Thanks for the share.
ori
Comingeling is so 2011. In 2012 its all about straight up theft.
All your capital are belong to us.
Popo - Ann Barnhardt also keeps a copy of the Koran bookmarked with bacon; that is, the parts she hasn't set on fire. The girl is a little. . . how do I say this. . . odd?
While I don't necessarily disagree with what she said in the Pollock interview, her YouTube video antics paint the picture of someone. . how shall I put it. . .lacking temperance.
I think the correct terms are "Poor Impulse Control" or the more widely used "Psycho Bitch".
Something Wicked --
And I like my women under 44 kilos. We all have our weird sides. But when it comes to analyzing financial fraud I like to think I have it right. As does Anne "Koran Burner" Barnhardt.
I'll double down on this one if I have to. What she said is 100% accurate.
Peace,
Popo.
double post: delete
Fraudsters Without Borders:
"Bankers and Brokers to provide urgent financial care in countries to sheeples of wealth regardless of race, religion, or politics."
Change, as in we change you from being wealthy to being poor and "yes we can" as in yes we can and will fu_k you". They believe in building real relationships with their "victims". A rapist builds a real relationship with his victim...a terrifying relationship. Say bye bye to your virtual gold and silver.
Is this their mascot: Barney?!
@ GiantVamSq
I get my gold the old-fashioned way: driving over to my coin shop and buying it!
The premiums I have lately paid over "paper gold" (spot price) have averaged some 5.5% over spot.
Here is the widget-tracker I use to track premiums over spot vs. spot gold (for a longer term project to help me identify stress in the retail physical gold market), note that I just started this so longer-term trends are not available:
tinyurl.com/7vradcx
This widget comes from eBay and 24hgold.com and is found at 24hgold.com's home page at the bottom.
I'm paying a 15% premium for silver, because I don't trust shops, after I started noticing a few articles about fake silver, some of the frauds look very good.
I buy the American Silver Eagles, so far without a problem (I guess!) at about a 15% premium as well. The ASEs would (perhaps) have the Secret Service tracking them down ("Legal Tender"). Yes, I did read a piece about very good fake Canadian 1 oz silver Maples.
I put much more $$$ into Gold Eagles. For the moment, there are few/no news items about fake AGEs...
EDIT:
Here try this for PM premiums on eBay vs. spot:
https://docs.google.com/spreadsheet/ccc?key=0AhnHmH-02CQIdG5GRXpkZ3RrZTdaeGdabElJYjVIVXc&hl=en_US#gid=0
Last above works OK for my premiums vs. spot prices of PMs!
In/around the 06 time frame, tubed ASE's could often catch a bid on the bay for spot, and that was factoring in freight.
HardwoodAg
tubed ASE's could often catch a bid on the bay for spot, and that was factoring in freight.
At this time, I would not buy any silver or gold coins off the Bay.
There are far too many dupes now,damned asians are making some quality dupes,even lifetime dealers miss a few.
Only deal with a dealer that gets their inventory directly from the mint.
OR, buy only older dated coins.(NOT semi Numis, or Numi's)
That's if you want the best return on your investment.
The scam continues.
Pandora Style Beads
If they are paper bugs, they aren't smart enough to choose option C.
I'll take the hooker for 1 hour, Alex
"So all the paper PM investors will instead pour their money into:"
Some might even choose:
d) Physical
Can someone tell me how to get my money out of my 401k? I have a small loan on it already but after seeing all of this I want it all out to invest in, um.. other stuff. =p I'm willing to take the tax hit but it seems they won't let me withdraw the money at all. Any hints?
Sure – Alton Brown’s quick and EZ recipe for getting money out of 401K:
1. Find new a job doing what you are doing now for more money.
2. Quit current job.
3. Take 10% + federal + state + local tax rape to get your money out of the retirement system.
4. Use your remaining $42.50 to buy a 1oz silver coin ($30 plus premium over spot , plus shipping / tax).
The only other alternative I can think of is to do the job switch and migrate the 401k into a Self-Directed 401K. In theory you can invest in real estate and PMs. The IRS loves disallowing Self-Directed retirement accounts, so dot your Ts and cross your eyes.
Please don't get 1 and 2 out of order. It messes up the whole recipe.
Sure -- and no tax hit. Set up a Self-Directed IRA and start moving money out of your 401K. It's a custodian-custodian transfer, so no penalties, etc. It's no different than moving an IRA from Fidelity to Scwhab. Some 401Ks limit how much you can move out at time to slow you down. Contact an outfit out there that does this, like IRAservices.com, and follow the basic rules to avoid SNAFUs. 2-4 weeks to set up. They're used to working with virgins and will walk you through it.
From there they can also help you set up a LLC, which is highly desireable for maximum freedom, to be your investing vehicle to buy real estate, including foreign real estate, physical PMs, etc. The service still functions as the custodian and LLC owner of record, while you are the controlling LLC director who can open local bank accounts to conduct your business. You can then transfer money from the custodian to fund the LLC (as needed) to buy foreclosures, other businesses and LLCs, PMs, or open equity accounts, or whatever, as desired. Your investment opportunity is virtually unlimited. Your LLC may also develop intrinsic value of it's own and you can sell it as an ongoing concern later on, returning the profits back to the mothership custodian account to repeat the process; or you can also have more than one LLC at a time.
It's all on the up and up with reasonable fees for set up and maintainence, but shop it around to make sure before you lock in on one.
Again, follow the rules which are pretty basic. The essential ones are that you can't do self-dealings with personal or familial property; and you can't invest in stupid shit like baseball cards. IOW -- you can't use your IRA to payoff your underwater house to live in. However, I've heard of like-minded friends who used their self-directed LLCs to reciprocate and buy each others homes, no one relocates, but the monthly rent to each other offsets and nets zero. Get it? Use your imagination, but follow the rules.
cnsteph
Most funds/companies will allow withdrawals, but it's dependent on how long you have been there, and only allow you to remove YOUR out of pocket portions.
If they refuse to allow you to remove the lions share of YOUR deposits, I would try taking out as large a chunk as possible by adding it to you current loan,more if they will allow it, if not a second separate loan,IF allowed.
Your interest at least goes back to you.And you get the lions share IF they allow it.
Just a thought.
Do they really charge commission for "selling" stock that went to zero? Haven't had that experience yet... /sarc
A snitch mad about his bonuses capped at 125,000 ratted out this "commingling" bank... Oh wait wrong bank...
They should be crucified for this crap. Same with Corzine. Keep your hands out of the cookie jar that has the clients money in it. That's what happens when greed gets a hold. It blinds people and ruins there judgement. And then turns them into thieves and liars.
A thought just hit me - is it possible that all these paper metal products are actually driving the prices UP? We've seen this phenomena before, like in real estate. When access was easy and loose, the asset prices went crazy.
Of course in the metal markets, there are true limitations on the availability, but think about this. Many people don't want to deal with physical. Too hard to store and makes you a target. So they trade paper. If this proven to be a bogus method, where will that demand go?
Oy gevault. Alea iacta est...
u think so?
But nothing would happen like this in Canada! Canada is so much better than every where else!
Too bad Canada's former president Obubba Clinton also repealed Glass-Steagal.
It has nothing to do with Canada. Thieves and Liars know no borders!
It has everything to do with Canada. When Tyler had posted some information about the shape of Canadian banking he ruffled some serious feathers. There were some staunch denials that Canada would allow such things. So this is a confirmation of that Canada is no different than anywhere else.
pods
Now I'm no longer so sure of my tungsten holdings in CEF. Their prospectus sounds very similar to Barret's pitch.
Shit's pretty fucked up if even tungsten turns out to be nothing but paper promises.
pods
When Tyler had posted some information about the shape of Canadian banking he ruffled some serious feathers.
Well, this is a minor salvo compared to the housing market, where the Canucks are going to recieve the same douche we have here,it will be MIND boggling for them.
Everybody's doing it. They had no idea. Priced In. Bullish. Sell PMs. Etc.
ruh-roh!
Ah, the roaches are getting easier to see now, eh Slewie? Scooby would be proud. The markets will greet this news of yet another hypothecation to the nth degree with a knowing sigh. Wonder if Santelli will give it a mention in the morning?
what are the re-hypothecation parameters involved in toronto & montreal?
you're dressed to investigate!
will the RCMP civil division design the case? L0L!!!
some of the markets may do more than sigh if laurentianBankSecurities catches more than the sniffles from this; looks like tyler can't tell much yet, but unless this regulator has flipped this is a done deal and the hearing is tomorrow to shut "Barret" down; whether it is BK or not is another Q, but not a very hard one...
i'm looking at laurentianBank now, the holding co of the securities broker:
2010
Fourth consecutive year of record net income, with $122.9 million in net earnings from operations posted in 2010
Sixth consecutive year of increased earnings per share
...however, on the shadow side of their bankstering business...in the unregulated credit "markets"...
stay tooned, rocky!
Slewie... As Po Po mentioned above this comingling/theft of client funds is rampant. I've read on several other sites the same bs is going on every where.
I believe that is why we are now seeing articles pop up about 'how to insure your stocks (or whatever assets) are registered in your name and are safe from comingling and theft... which is just more bs.
Thieves, liars, sociopaths are always with us... so any moron saying that 'markets can self regulate' is simply another thief looking for an opportunity to set needed regulation aside. Some regulation is needed and it needs to strike with an iron fist when thieves break rules.
If no 'or else' clause is enforced the theives walk and more theives follow their example.
If the magnitude of the theft hits MSM a real bank/broker run will ensue.
excellent remark - client funds are being treated as pawns in the bankster's game
though you just mentioned a very "pregnant" word - regulation.
IMO you can't even use this word in a polite conversation anymore because the US political landscape seems to be polarizing toward "no regulation" and "more regulation" - which is leading nowhere
in fact, 22'000 pages pieces of new laws and regulations are part of the problem - you need some size to even digest this kind of regulations, another finger pointing to the dear lobbyists in Washington - and the losers are "all those that have no legal department with more than 500 staff", including private citizens.
what the world would really need is smart and short regulation - or just an excemption of all private citizens and companies with less than 100 staff from regulations that are just freaking too long to read
of course, the easiest (and politically more difficult) way would to reset the system - abolish all regulations (here in financial matters) that has been made after 1960 - which would also make nearly all universal banks and derivatives illegal - as they should be...
As I've always said, it's better to deal with a good man in a war zone than a crook in a well regulated environment...
Due diligence people, it's the only way you'll keep your money.
I decided years ago that the banking system was not a safe place to keep my money in a fiat environment. Neither are 'mini banks' or options traders or brokers or anybody else...
It's why I buy gold...
I mean c'mon, how the fuck can you have a hard asset of, wait for it... a derivative?
H0001... Physical PMs are the only way to be safe. Even they we must consider what a desperate gov might attempt to do when push comes to shove.
Shovel ready.
Just thinking out loud here, but what if the regulations were actually enforced? It might make a difference. I know, I know, inmates running the prison and all that.
Hey Dawg,
Saturday while I'm at my morning meeting, winds up my mom passes away. Found out on the way over to visit her immediately thereafter. And yet, still did my appointed H&I that evening. "If you want what we have...."
Must be present to win...
The Promises do come true, eh?
Thank God for the deal we've got today.
Blessings,
Knuks
in this context: the first Plebeian Revolution in ancient Rome happened when the people striked until the aristocracy published the current laws, so that everybody could know what the law is
what we have now is the inverse: we have so much law and regulation that no single person can read it, or act accordingly
this takes the "sovereign" out of the people, again
Exactly right... Too much regulation unless one has a huge staff of lawyers/accountants.
But, the first rule in a court room is 'ignorance of the law is no excuse'
Catch 22
The IIROC is a Canadian self-regulatory organization. Barwette Capital will certainly get a $1000 fine.
Snidley,
I believe that is why we are now seeing articles pop up about 'how to insure your stocks (or whatever assets) are registered in your name and are safe from comingling and theft... which is just more bs.
Yeah, but alas,I fear that this prudent information comes way too late.If it's RAMPANT, registering,insuring, is not possible............they already have Stolen the money.
Like a Bank Run,always will happen after you cannot gain access to it..................on a weekend.
ROR. (Ruffed Out Roud)
Snydly Whiplash! Oh where was Dudley Do Right this time Inspector?
http://www.youtube.com/watch?v=BWgi6W-uMeI&feature=fvst
I wonder what Barret president Jamie Cohen has to say about this. Strangely, there's no mention at all on their website.
He's not working on his web site, probably busy on EXPEDIA.CA looking for a good destination.
How about ideas on what to do? 35% of your assets in gold/silver is wise. But what to do with the rest?
"But what to do with the rest?"...Stock up on the things you need and purchase on a regular basis...It ain't gonna get cheaper!
Hoard, Man!!
The above poster has shown himself to qualify as a Domestic Terrorist.
Stone the hoarder!
Hoard the stoner!
If Luna Man is living in Florida, or another hurricane prone states, he is probably following the advice of his state governor...
Have adequate supplies of fresh water, food, medicine, candles, fuel and a generator on hand...etc.
Most grocers and gas stations do not have their own power generators. When power is lost for two weeks, it's not uncommon for fuel to run out (gas stations may still have fuel in their in ground tanks but cannot pump it without power) and all fresh food is spoiled and thrown into dumpsters.
Be a good Boy Scout... Be Prepared... and, it isn't hoarding... in Florida it's called hurricane preparedness.
I've been researching LP-fueled generators. Looks like a good deal to me- gasoline only stays good for so long, but a guy can get a big LP tank in the backyard, and it will remain useable for years.
And no matter how you slice it, it may one day be difficult or impossible to get propane- but gasoline won't be any easier then, either. At least with the big tank, you don't need to depend on a station for a few months.
LP with large tank sounds like a good way to go. I have a 7.5KW gas generator which is enough to run the fridge, freezer, computers, washing machine, and some lights and fans. Not enough to run the air conditioner/electric clothes dryer but a couple of weeks sans AC isn't bad and we have a clothes line in the back yard. I cook outdoors on a big gas grill which is something we do a lot of anyway.
We have never had a problem even when power was out for a couple of weeks. Once I had to drive about 50 miles to find more fuel for the generator but that was a pleasant drived down almost deserted back roads.
I keep about 50 gals of gas (remote shed on back of property) on hand for the gen and rotate it into vehicles every couple of months to keep it fresh. Actually, I have saved a bit of money on gas purchases by buying when the price drops.
Our system isn't perfect but it's better than nothing.
I had so much hope in smart american gas turbine producers like Capstone Turbines conquering the US market with their wonderful frictionless gas turbines producing electricity and heat/refrigeration in one package - with a pipeline distribution system across the continent... alas, this has gone nowhere for years and years... I was sure around the nineties that by 2010-15 half of the big trucks and trains would run on natgas... I still can't explain it to myself.
Hope? You must've forgotten that the world is run by a criminal cartel.
Tri-fuel generators would be good to look at or if you research it you can find tri-fuel conversions for just about any standard generator out there. Personally I'm looking at a woodgas system as a backup to both of my current generators. I have an unlimited supply of wood here and currently use it to heat my greenhouse and aquaculture tanks directly.
Depends how much you got, but farmland, good profitable farmland, or a cow, or if you are really struggling a chicken will yeild good dividends, and if you want you can get a 12-1 split (only if you get a rooster as well).
We should go easy on them. The clients were to blame too. So is society. I propose we raise a collection to fund a bailout for our brothers in need
Some of the clients will have been banksters / brokers 'investing' their bonuses from last year, so we shouldn't shed too many tears on their behalf.
Our society rewards banksters for stealing, and then they are, in turn, stolen from.
Only a very few right at the top get to keep their stolen money.
Get over it. It's completely legal by law.
revenge shall also be legalized.
If it's legal by law, can they continue on?
Bunga Bunga
Get over it. It's completely legal by law.
In CANADA?
Wonder if the investors KNEW it?
Ahhhhh yes, as I've been saying (warning?), there will be more MFGs, since it is after we're in the next phase of looting Americans (and Canadians too apparently), stealing funds and assets in brokerage accounts.
.. and it seems focused on PM traders, leading me to wonder if Comex is on the verge of collapse given these thefts of long PM positions ...especially those standing for delivery.
Some people never learn.
Yep, its all spelled out here.
http://www.golemxiv.co.uk/2011/12/plan-b-how-to-loot-nations-and-their-banks-legally/
+349857348957
GREAT link, thanks.
Excellent, excellent link. Thanks!
nfp
...yes, good link, but, the author tries to sound a bit naive to the nature of the beast even though they are on the case. The occult reality of architecture in D.C. alone should resonate like the Washington Monument on the Second od Sirius after being cracked by a quake post Rosemary's Baby's last White House raise the debt ceiling speech. Lol He meant sealing the mark of the (debt) beast upon all, rich and poor, free and bond. Lol
http://www.youtube.com/watch?v=GZ2ZcmMxehk&feature=channel_video_title
http://bible.cc/romans/8-22.htm
It may be nice, but global economic solutions from a 2nd generation film maker? Not that academic credentials matter much today.
Fractional Reserve Ratio. Getting the drift yet everyone? All together now; END THE FED!
Investors in the markets are like battered women. How many times are you going to get the shiite kicked out of you until you start to realize that he does not give a damn about you?
He never really "cared" about you baby. The "Market" has always been playing you like a bitch.
Yes harbanger, but how long does it take and how many black eyes, split lips, back of the hands, donkey punches, swirlies, and bukkake episodes does it take for them to realize this. This could be akin to the stockholm syndrome in a kinky way.
I agree, and like stockholm syndrome, most can't imagine an exit strategy.
....aaannd it's gone.
Nobody expected the spanish/american/russian/iranian/south american/cuban/chinese/french/indian/turkish/pakistanian/afghanistanian/nigerian/syrian/ukranian/kenyan banking inquisition.
http://www.youtube.com/watch?v=Q2aha4uEpEQ
http://www.madcowprod.com/03022011.htm
It must also be said, and I'm glad to do it, that investors are like S & M participants without a safety word. You know you loved getting phoqued, beaten and abused, but if you complain or yell stop you get more of the same plus a bill in the end. Or maybe at the end. Or both. Just be sure your ballgag is tightly fastened.
Who wants to see all that money just sitting there idle. Let's lose it all.
panic meltup on commodities last hour or so, then this blackswan shows up.
Ripple effect as everything is leveraged/hedged to hell on the derivatives.
rogue trades kickin in
Seriously, Barret??? They have had less than 10 employees and are privately owned. You are comparing a mom and pop shop selling gold and futures to MF Global who had 3200 employees. And you are saying that Canada is sinking because these 10 employees were comingling money.
I must believe that you are Canadian, because only Canadians think our piddly little problems are even noticed by the giant next door. Have a good day, eh!
Ya enron had 19,000 employees compared to exons ohhhh 131,000 or so and they totally didn't matter at all.
Okay, I look forward to seeing how this plays out. To me it seems like a small time company that got caught doing a very bad thing. I haven't seen how big the holdings are that the firm places for customers but at first sniff it seemed like a small fish. I realize that with leverage small fish can have big results but again we shall see.
Smaller fish have less space to hide once they get into deep water.
It's the implications not the scope. ZH put up an article a month or so ago that between CIBC and RBC, they have hypothecated some $130 billion of client funds (don't quote my numbers, is close tho).
I'll buy that the implications aren't good. But I guess my complaint is with it being called the "Second MF Global"
other than holding bullion precious metals (and no "paper gold" like gld), a powerful recommendation certainly, what are steps/recommendations for average retail investors to follow to protect their holdings, particularly stocks, bonds, cash and mutual funds, from the obviously growing risks of corporate malfeasance of which rehypothecation is a facet?
please help us. if gerald celente was taken, who is safe? must we retitle all assets per "bulletproof shares"? should margin accounts be shunned unless so used? thanks in advance.
No such thing as bullet proof shares. Possession is 9/10ths of the law. Get physical.
If one insists upon holding equities, Jim Sinclair suggests having your broker send you the physical certificates. They don't like doing this, of course, but they will, if you pester them enough.
what are steps/recommendations for average retail investors to follow to protect their holdings, particularly stocks, bonds, cash and mutual funds,
Close that brokerage account.
Stop doing business with white-collar criminals.
It does strike me frequently that a lot of ZH posters are truly like battered women. The hue and cry when blatant manipulation is exposed should be a clue to these folks that maybe it's time to leave the game, rather than expecting that "next time it'll be different." Folks, the sooner we all withdraw our consent (money) from this broken system, the faster we can get on with fixing these problems. Stop chasing the greater fool; you are the greater fool.
Jeff... If you're not holding it, you are not holding it.
It's called counter party risk for good reasons.
Just because it's a mom and pop shop doesn't mean they are the only ones. Remember, Canadians are the most arrogant, hypocritical ignorant people there are. Hell, just listen to the first two verses of their national anthem. "Oh Canada, our home and NATIVE LAND." Whose land. Also they think they have free speech in Canada which makes my mustache laugh.
You're missing the point. Canadians put milk in bags. Not jugs, not cartons. Bags. It's such a deviant frikking behavior that they don't even talk about it. You didn't know that did you.
They can hide putting milk in bags from the ENTIRE FREAKING WORLD.
You have NO IDEA what you are dealing with here. NO IDEA.
I had a canadian friend in high school. He taught me a little bit about physics and math, did he mention the milk in bags thing? NO.
I had a canadian woman and her friend spend the night in my house. Did they mention milk in bags? No.
Milk bags are common in several countries and regions of the world, including Argentina, Bolivia, Brazil, Nicaragua, Honduras, Canada, China, Colombia, Estonia, Hungary, India, Iran, Israel, Montenegro, South Africa, New Zealand, Uruguay and Vietnam. They were also common in Bulgaria and other Balkan countries during the Soviet bloc period.
** Milk bags use less plastic than traditional milk jugs and are placed in reusable plastic pitchers and Besides, Glass is expensive.
Looks like fag countries.
of course they are - best if you keep yourself in your non-fag environments
Glass is expensive...
Bags in boxes, you might have something there.
Afterwards, you can blow up the bag and make a nice pillow out of it (well, depending on the park bench).
spit water all over my keyboard
This is Bullish!!
Mr. LH,
Right.
Who said that? It cannot be the Right Honorable PM?
Will be interesting to see if the Canadians can track down the missing money much faster than the MF Global trustees. When we seem to live in an era where every little financial sneeze, transaction,transfer gets reported to some entity or another, I'm amazed that folks are still looking for over $1b in MFG customer funds.
Nice website.
I'm going to open an account.
"Nice website". Yes my friend this is a golden one. You will be hearing a lot of words such as gold/silver, bitchezz, guns, canned food, gold, some more gold wrapped in gold. Oh and also you will be reading some fucking real news (sorry main stream media, I had to stick that in there...)
Did you hack into Morning_Glorys account to post your comment?
Barrett Cap's CEO and MF Global are more closely related than you'd think...
Got LinkedIn anyone? : )
ha ha, the facade is crumbling
Sorry Sonny, the dog was rabid.....had to put it down......
Welll it looks like the best thing to do is make sure you have all your credit cards paid off. Rent housing if at all possible. Stock up stuff that you use. Get a hold of some PM in the physical. Save nickels. Learn a trade like plumbing or perhaps work study as a pimp. Learn to brew booze and drugs. Learn Spainish so you can work with the local Jefe. Smile and remember it is all priced in.
CANADA Dec 28 2011: OSFI submission to US regulators regarding consultation on restrictions on proprietary trading. http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/media/rstrprttd_e.pdf
As per the letter above sent by OSFI to The US Treasury, Federal Reserve, FDIC and SEC reveals, Canadian banks are in fact at risk to new US regulations that may potentially undermine the financial condition of Canadian banks operating in the US.
"OSFI is concerned that the draft regulations may have the unintended consequence of significantly impeding Canadian and other foreign financial institutions' ability to manage their risks in a cost-effective manner, which could give rise to prudential concerns in Canada and abroad."
OSFI goes on:
"In other words, OSFI would not wish to see US regulators taking actions that may enhance the stability of their financial system at the cost of undermining the stability of other systems around the world."
And there you have it folks, more exemptions and further deregulation, because as Howard Green from BNN curiously asked Bill Downe CEO of Royal Bank 'How do all the banks continue to report double digit increases in annual earnings when Canadian GDP is stuck where it is?" Bill Downe replies "Well it's business."
And business it is...
Cummingled funds?
Again?
I mean, don't they know who their neighbor's Wives are?
Is Lady Justice asleep or getting some of the action?
Do they expect a society to survive this crap?
"Do they expect a society to survive this crap?"
No they don't. We the People make the world we live in, each person, each decision, each generation as we go along.
It's up to all of us to maintain civilization by trading our work, by deciding what is truly important, and creating the society we want to live in.
Truth => Individual => Responsibility => Freedom
It's a return to reality. And considering we should have had another reduction in the standard required work level, similar to the industrial revolution, it will be a lot better than we think.
As long as we keep civility and freedom intact in the meantime. ;)
ahh nevermind
Time to buy stocks. Had to document that. I'm my best contrarian indicator.
Until a regulatory entity proves otherwise, assume that everyone you are dealing with is a crook, and act accordingly. Complex theft schemes are the new normal and will soon be revealed by the crumbling worldwide fiat ponzi. The massive shift in wealth, from the many to the corrupt few has already taken place! The money is gone, it just has not been "booked", yet. Epic haircut, dead ahead.
Trust the regulators? Or put another way: "Who watches the watchers?"
Over time regulators are "captured" by the industries they purport to regulate.
This is like the Titanic hitting two icebergs. How many times does someone's investment "vehicle" get dinged, before they park it in a different "lot"?
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
" in direct violation of the first rule of banking."
There's rules?
I thought there were only guidelines and they were, that once deposited, your assets were considered their assets. Isn't that what fractional reserve banking is all about. Isn't that why they include rehypothecation clauses in brokerage accounts? Isn't that why they dumped Glass Stegal? What's the big suprise?
I bet the market will still rally despite the rise of an MF Global wannabe (Barret Capital Management).
The market has become desensitized after being bombarded by tons of bad news for several months straight, and nothing happened.
The next decline would probably be just some minor profit-taking before another rally to a new high.
Expectations are very high that the central banks will continue to print their way out of the entire mess.
The stock market has always been just a game.
It is just a game.
It was never about the economy or any sort of fundamentals.
What is money?
Well, it's just a gaming token.
Money was never real.
And it is just a game.
Money is always real. Even "fake" money is real. Money is the trading of work for work.
It's our perception of reality that is / was lacking. We became complacent.
What exactly are we accepting in trade for our work?
It's a question to which people used to give a lot of thought.
Jim Sinclair is begging his followers to direct register their mining shares. Perhaps its time to stop being lazy?
PS.
Dont trust those Canadians. They are sketchy at best.
How exactly does one go about registering shares for Pets.com anyway? That would be embarassing.
oww comone, gov have been cominngling retirement money since pensions have been invented.
Canadians with any knowledge of the current Conservative government is aware they have a very different attitude in regards to financial regulation than the former Liberal government (whose policies are widely credited with shielding Canadian banks from the financial meltdown).
Since 2007 the Conservatives made some very important changes to Canadian financial regulation:
http://publications.gc.ca/collections/collection_2007/bank-banque-canada...
"In Canada, financial market participants are broadly supportive of the initiative to pursue free trade in securities with the United States and other G-7 countries....
They suggest an arrangement with foreign regulators in which each side would rely on the other’s regulatory systems, an approach known as mutual recognition. The arrangement would allow foreign exchanges to offer their listed securities and foreign broker-dealers to offer only foreign investment products to U.S. investors directly without having to submit to SEC regulation (if approved by a regulator abroad with equivalent rules). The proposal outlined a four-step process applicable to both foreign exchanges and broker-dealers: i) a foreign entitypetitions the SEC to seek an exemption from SEC registration; ii) the home market regulator of an entity and the SEC assess comparability of regimes, including enforcement, and negotiate a co-operative and information-sharing arrangement; iii) the SEC and the petitioning entity establish an agreement as to jurisdiction and service of process; and iv) the SEC assesses the petition, following public notice and public comment...
While many questions remain unanswered as to how such a plan would be implemented, the potential exists for a clear net benefit to financial markets. Free trade in securities could create broader investor and issuer access, improve market efficiency, and increase competition, all of which could reduce transactions costs. Concern about a possible weakening of investor protection has been identified as a top priority in discussions between Canadian and other securities regulators. It is likely that the resolution of this issue will be found in a co-operative approach to securities regulation that is focused on regulatory outcomes rather than on detailed processes."
At least we all know that investor protection had been identified as a top priority!
As Ecoman11 points out the Canadian Conservative government recently released their latest revision of this march toward certain doom.
Jesus listen to you idiots bashing Canadians, Esculent 69 says" Canadians are the most arrogant, hypocritical ignorant people there are." Can you even find Canada on a map you fucking nub! OOHHH like i put 69 after my name dude umm so like i'm totally into the like you know stuff dude, real narley dude!! STFU! Are you pissed because you got ass raped by your government in the form of baill outs and we haven't yet? Canadain banks will end up just like yours little fella so relax that day will come you just have to be patient. I guess you failed to notice that it was a Canadian investment regulator that brought this to light (you did catch that hmm no?) which is something over what the clients at MF Global got, hows your regulators doing over there..oh yeah you stupid tit. Mabey the Canadian government can call on Esculent 69 to get some quality advice, that is if your not to busy hanging ten on a rad wave DUDE!!!
Scrip = Chamomile tea, bong hit, gold and silver.
Dude, chill out. This kind of hyper-nationalistic fervor schtick does not play well on the Big Stage. Guys with welder's papers are usually tres OK...please check yur lines, then take a deep breath. Maybe play the Henderson goal tape one more time. It's gonna be OK!
Trust me, it be better if they can't find yu on a map a'tall. The guy[arrogant, hypocritical""] can't even spell, and you come offa the bench and pile into the harmless douche like Punch Imlach just told ya to take the guy out fore he puts one past Johnny B.
Clear the track, here comes SHACK!!!!!!!!!!!!!!!!!!
edit: shit, just realized it's been nigh upon half a century since Eddie laced up with the big maple leaf on his jersey....better put some context here for da Scrubs!>!>? http://mapleleafslegends.blogspot.com/2006/05/eddie-entertainer.html
Eddie!!!!!! One of the most entertaining players ever...
...Is it still possible to get a Pop Shack franchise?
YES, CANADIANS ARE ABLE TO UNDERSTAND HUMOUR AND SARCASM! (Just remember to add <joke> </joke> tags).