Watch Live As A Recusing Gary Gensler Tries To Explain Why The CFTC Failed Massively In Its MF Global Oversight

Tyler Durden's picture

Nothing like watching one Goldmanite explaining why he failed to prevent another Goldmanite from (allegedly) stealing hundreds of millions in customer accounts. Linked below is the live hearing by the "Continuing Oversight of the Wall Street Reform and Consumer Protection Act" in which Schapiro and Gensler are held to account for their epic failure with MF Global oversight.

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oogs66's picture

Exchange traded CDS bitchez :)

redpill's picture

OT: I'd say this outdoes the "waterboarding is not torture" legal opinions from ol' Bushie even

"The government lawyers - CIA counsel Stephen Preston and Pentagon counsel Jeh Johnson - did not directly address the al-Alwaki case. But they said U.S. citizens don't have immunity when they're at war with the United States.

Johnson said only the executive branch, not the courts, are equipped to make decisions about who qualifies as an enemy."


How about that.

Don Birnam's picture



Common denominator, beyond resemblance ? Vampirism upon man; extraction of the physical life in the latter, and the financial life in the former.

Pladizow's picture

Fucking Schmeagal crack head aids infested anal rat!

Harlequin001's picture

I'm sure if I watch it long enough that one of them will answer at least one question put to them fully, but I'm bored with it now so, no such luck...

It was not unexpected.

What was unexpected was that Gensler actually looks like a cartoon maggot...

No shit.

rufusbird's picture

What is amazing is that he actually looked just like Clark Gable when before he started his career.  job hazzards...

Max Fischer's picture



Where are the Peak Oilers?  You guys claim that declining "flow" of oil is what led society to get so leveraged, right?  So why aren't we hearing about Peak Oil with the MF collapse?

Because it's total nonsense?

Here's a perfect example for you to take your bogus abstractions and apply it to a real world, highly leveraged collapse of a financial institution. 

Max Fischer, Civis Mundi


SWCroaker's picture

Max; I've (finally) concluded that you're an idiot, and thus the newest resident on my global ignore list.  Adéu.

Max Fischer's picture



Sorry to disrupt your echo chamber, Sir. 


equity_momo's picture

I would rather hear the noise of reality and logic bouncing back at me , again and again , than live in a Dunce Chamber and have to listen to idiots spouting white noise and debating back and forth whilst entirely missing the point. ie the MSM and political elite.

Perhaps the human race needs to be put into a ZH echochamber until they wake the fk up. Consider yourself fortunate to be here , eventually you might learn something.

trav7777's picture

no echo chamber is a good place to be.  And people here aren't waked the fuck up.  They refuse to be.  Too scary.

tmosley's picture

Trav thinks his dream of a racially pure world is reality, lol.

Barnaby's picture

I would rather hear the noise of reality and logic bouncing back at me , again and again , than live in a Dunce Chamber and have to listen to idiots spouting white noise and debating back and forth whilst entirely missing the point. ie the MSM and political elite.

Piranhanoia's picture

Are you a village idiot, or freelance?

Seer's picture

For those, like Max, who just don't understand what PEAK means I'll give it one more try:

PEAK = the TOP

In the case of Peak Oil it means the TOP of production, the MOST that will ever be extracted at any particular point in time (given a rational time slice).

What CAUSES the PEAK does not invalidate that the/a PEAK occurs.  Got that?

Reminds me of the stupid arguing about what the price of oil would be.  It's not PRICE, it's AFFORDABILITY: little does it matter if oil is $25/bbl and you're unemployed (and stay that way); if oil is $200/bbl and you're employed, then it's also questionable whether that's acceptable.

Max, if you refuse to believe that this is a finite planet then perhaps you need to go out in pursuit of unicorns and Skittles and leave us "less informed" folks alone...

Max Fischer's picture



You don't need to reduce the debate to the absurd.  I firmly acknowledge that the planet if finite. 

However, the argument, as purported by Peak Oilers around here, is that since the rate of flow has diminished, this has led our financial institutions to become leveraged to maintain growth.  Personally, I think this is PURE BULLSHIT. 

So, here is a perfect opportunity to apply your diminished "flow" argument to the failure of a highly leveraged financial institution.  I don't need a dictionary definition of what "peak" is. 

Max Fischer, Civis Mundi

Barnaby's picture

Don't start talking logic now. The Excluded Middle will get you for sure!

trav7777's picture

Oh, gotcha.  I'll take this one

The decreased growth rate of net energy input pre-peak caused aggregate profitability to decline toward 0.  In order to make this up, the financial institutions had to use massive leverage to cover for the incredibly meager profitability of endeavors.

Like how China tries to make 1000 more factories all producing shit that earns a fraction of a cent per unit.  There's nothing for them to do to earn a higher profit, so they attempt to make the money through volume.  That is how financial leverage has worked.

Net ROI of our economy has been declining for some time now; consequently, increasing amounts of leverage are necessary to extract profit.

Leverage is EXACTLY what the word describes.  As the horse gets nearer to death, you have to whip it harder.  As the burden gets heavier, you have to use more leverage to move it.

As oil supply now declines, there are a lot of firms trapped in positions of leverage against a DECLINING credit base, where they are having to scramble for dollars to repay.  Some simply cannot.  Musical chairs is an apt analogy.

The decline in net energy means a decline in all things being "done," as power is what does doing. 

MachoMan's picture

There are essentially two parts to the argument: (1) that peak oil caused institutions to leverage up; and (2) that peak oil caused an already leveraged system (desperately in need of growth) to slow down and begin the default avalanche.

Max, you clearly dispute the former, but do you also dispute the latter?

(and I guess I have a hankering for feeding the trolls)

Eally Ucked's picture

For couple of years I've read your postings and they always have some massage in it, but this is forum and you cannot bllaber about something and count that somebody will understand it. Maybe you have too much propelant at the moment when you write or your brain is overwhelmed with thoughts and it's hard to put it together in coherent piece. Maybe shorter form would be useful, omitting some personal attacs, which you like, would be useful.

Archduke's picture

I think there's a wrongful causation in there.


firstly, leverage has increased because of 3 converging factors:

1. smart risk-neutral derivatives math to better price and hedge risk.

2. faster computers and networks to do the math and bring prices to markets.

3. globalisation, ie, reduction of trade barriers and greater integration of said markets.


I would say the oil and manufacturing boom (?peak? )was fueled by

leverage.  transporting thinks by shipping is still one of the most

risky endeavours today, much like it was the originator of insurance

and joint stock ventures centuries ago.


mass-producing cheap goods in china only holds as long as there

is cheap oil, since by their nature, these good rely on volume,

and mass quantities are expensive compared to high quality

expensive goods per ton shipped.


imho there are very few peak-oil that argue that previous leverage

was caused by the coming oil shock.  what they are saying is that the

oil shock is incompatible with a highly leveraged mechanism.

I'm not sure that's true. vIn fact I'm convinced otherwise.


surely if oil supply rarifies, each shipment will cost more to

transport, and thus will no doubt carry much higher-value goods.

note that on top of the volatility of the price of oil, the risks

inherent to merchant shipping (hurricanes, shoals, drunk captains,

pirates or what have you), are pretty much constant *per voyage*

and maybe miles travelled.  this means we will have more risk,

ie we will need much more leverage, if we are to trade at all.


so if you believe in peak oil, we will now have the reverse.

increased leverage but decreasing trade tonnage and fuel use.



curbyourrisk's picture

Just because there is a finite supply...out there....  That does not mean we have hit PEAK.  It just means that at sometime in the future  ..  WE MIGHT.


There are new finds everyday.


But I ain't getting into all the horse shit arguements from both sides, not today.

trav7777's picture

discoveries PEAKED 47 years ago, dipshit.

There are LESS and LESS new finds going forward.

Please, do YOURSELF a favor and STFU.

Max Fischer's picture



False argument. 

There is more and more oil being found within those fields.  While the discovery of new fields has tapered, more oil is being found in/around them with better technology. The petroleum engineers are finding more oil than the geologists. 

Max Fischer, Civis Mundi

Ruffcut's picture

How in the fuck do you know what the real oil supply is.

You are one of the biggest assholes to post on ZH, and are proud to do so.

You are as big an asshole as denigger. Go back the ticker forum and try to convince them you know anything, at all.

Trav777= dickweed supreme and loving it.

SheepDog-One's picture

Really Max? Then why is everyone so desperate to get wars started and take control of nations oil....because its SO plentiful?

Barnaby's picture

Every generation needs a Holy Grail. Oil happens to be a chart-topper because most people use it.

trav7777's picture

you are in the running for the biggest idiot around here.

Even mosely-claven has STFU trying to dispute peak oil.

When 54/65 oil producing nations reached peak and entered production decline, you'd think that the reality of this would simply be undeniable.  But morons like you who are clearly a combination of stupid and arrogant (Downing Effect) continue to deny it.

This is the problem with you, Max; you VASTLY overestimate your own intelligence and FAIL to comprehend others'.

A decline in flow of oil did not force society to leverage; leverage continued because it is its own exponential growth animal.  The growth of net energy inputs permitted this edifice to remain upright.  Now that oil is declining in production, we are seeing all of the leveraged critters implode spectacularly.

Max Fischer's picture



I'm not disputing that eventually "peak oil" will become reality.  Not even Yergin disputes that.  

You are, once again, subtly twisting the argument away from many of your original claims; that is, the flow of oil is the underlying cause of the financial crisis.  I'm disputing your continued claim that there is ANY connection between diminishing flow rates/"net energy imputs" and our current financial crisis. You have been trying to link the two for years, and it's PURE BULLSHIT.  Here you do it again:

Now that oil is declining in production, we are seeing all of the leveraged critters implode spectacularly.....

Total bullshit.  Your white, cone shaped hat is restricting blood flow to that air-filled cranium of yours.   

Max Fischer, Civis Mundi




tmosley's picture

I love how you declare victory in your mind when you are a thoroughly beaten dog in reality.

We had peak whale oil, now there are no lights on the East Coast!  Eternal depression for all time!  OMFG!

This is the problem with you, Trav; you VASTLY overestimate your own intelligence and FAIL to comprehend others'.

Momauguin Joe's picture

The Sephardic Vampire Squid.

The Big Ching-aso's picture



I think vampires run away from this guy.

yabyum's picture

FLUSH>>>>>>>and around the bowl you go! Bastardo!

Don Birnam's picture

I had a sense that you would pick up on the resemblance, WB7 ! Striking and uncanny, isn't it ?

Well done !

williambanzai7's picture

Once you identified it it was a piece of stale cake ;-)

The Big Ching-aso's picture



Speaking of resemblance.   That nose.   Is he possibly related to Henry Waxman?

PaperBear's picture

Does anyone think that claiming someone is an enemy of the USA will not be completely arbitrary ?

The tooth fairy is an enemy of the USA.

scatterbrains's picture

               *glancing into the future*


since position of physical gold and silver has been outlawed given the confirming proof that terrorists are using it in exchange for weapons, and since we have discovered documents that prove you purchased same and have yet to turn them in.  Your detention here at the federal pen will continue until such  time as you remit your gold and silver to us BITCHEZZ!


Going Loco's picture

I am so sad to see how low the USA is sinking, and fearful when I realise that nothing is being done to correct the decline of business morality and the rule of law. 

buckethead's picture

I got junked in a previous thread for making a similar point. I still believe pm's (along with cash waddage {used 20s not crisp new bennies}) are a must, but TPTB are a resourceful and ruthless lot.

Go dark wherever Possible. Guns and ammo included... Terr'ist bitchez

Seer's picture

Been that way for a LONG time.  And, it's only taken some despot dictator to declare a hatred for communism for him to acquire all sort of favors from the US (while he slaughters his own people, in the name of anti-communism).

taxpayer102's picture


At the Pentagon's 2011 commemoration of Martin Luther King Jr's legacy Jeh Johnson suggested Dr. King would understand today's war waged by America.

Responses to Johnson's statement, posted on DoD's website, almost 100% characterize his remarks about Dr. King as reprehensible, despicable and unconscionable.  Encouraging so many people saw through Johnson's lie to post their comments.

King Might Understand Today’s Wars, Pentagon Lawyer Say

trav7777's picture

more diversity...give them ALL a plaque for saying stupid shit

tmosley's picture

Trav wants a monoculture like Japan, where everyone will just shut up and defer to authority.  If only the authority was the right one, lol.

rocketroj's picture

Lord Valdemort lives.  The poor guy is working for Obama.

Ruffcut's picture

Goldacunt, and an ugly mother fucker cocksucker, too boot.