We're done folks.Emphasis removed.
CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.
That's the end of it. The belief that there are more MF Globals has now taken hold. The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.
The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk.
The market is done folks. You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.
We're there folks.
MF Global is now apparently missing some $3 billion--five times the "$600 million" figure that was bandied about in the last few weeks--and it looks like it was basically simple theft; the company used customer money to try to play the European bond market, and failed, and lost the money.
Jon Corzine, the head of the company, is not in handcuffs. The SEC shows no interest in even asking if there was any criminal intent. "Wha? $600 million in customer funds gone? Well, that's what happens when you play the markets: sometimes you lose. Oh, well. Pst--hey, Jon, buddy, I'm outa this job next year; here's my resume...."
So if Ms. Barnhardt is any indication, people are leaving the markets because they cannot trust that their money will be still be there this afternoon much less tomorrow or next week; and if Denninger is right, today's 300-point drop is only the beginning.
The story on the wires is that today's drop is due to the StuporCommittee's failure to come to an agreement on what fake cuts it can make to reduce the government budget's rate of growth, thus triggering "automatic" fake cuts which won't actually happen either.
I don't know about that; I think it's more likely that only some of the drop is due to that, and the rest is due to people like Ms. Barnhardt quietly exiting the market. When the less-perspicacious twig to the fact that the game is rigged in favor of the big bankers--who can do whatever they want without fear of prosecution--then the real shit will hit the fan, and it'll do it at about mach nine. And then we're in it.
The luckiest of the bankers and politicians will be hanged first....
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Illinois is so totally boned. "Illinois’ state government budget will be even tighter than expected in the coming fiscal year because of an unexpected $540 million increase in what the state will owe its five pension systems in fiscal year 2013." Oh, look at that! An UNEXPECTED! increase!
...unexpected by anyone who still hasn't figured out that no matter how hard you wish for something impossible, it's not going to happen. The increase was "unexpected" because the people managing the pension funds consistently overestimate the return on their investments. ("What?? The Dow went down? That's not true! That's impossible!" Yeah.)
And then look at this: "Gov. Pat Quinn’s budget office said it still plans to make the pension payments out of the state’s general revenue fund. Revenue is expected to grow by $1.3 billion next year." Emphasis added, because damn, of course Illinois is going to have more money next year! The economy will improve and businesses will stay here despite the fact that we increased taxes 67%, because what can they do about it? Leave? Don't make me laugh!
"The Republicans want us to repeal the 20th century." Yes, that would be a good idea. End the income tax and repeal the 16th amendment. End Medi$care and SS and the Great Society bullshit. Stop spending money we don't have on things we can't afford.
Waxman is engaging in typical liberal hyperbole there, though, because the GOP leadership does not want to do any such thing. The GOP leadership likes having all that money to spend just as much as the Democrat leadership does.
That's part of our problem: both parties are the same and differ only on the rate of growth of government.
14,000 abandoned windmills.
Minnesotans for Global Warming report that in the last 30 years, the United States has had 14,000 wind turbines abandoned. Apparently, once the subsidies and the wind run out, these 20-story high Cuisinarts are de-bladed and retired. This means more bats and migratory birds will live.How the hell do you like that?
Same vein: Prince Philip says "Wind farms are useless."
* * *
This is ridiculous. It's not ridiculous because the guy was afraid of wearing a sticker saying "666", either.
It's ridiculous because:
1) The company in question is handing out stickers with numbers on them as a way of promoting safety. Man, it must be wonderful to have all kinds of money to waste on having numbered stickers printed! Most companies just have a signboard or something.
2) Making people wear the stickers, and making it insubordination not to wear the stickers--WTF, is it a fucking preschool?
3) The guy did his best to do the right thing, by talking to his manager about it before it was a problem; he didn't just show up on the 666th day and say, "Oh, fuck no, I ain't wearin' that!" On the actual day he was told, "Shut up you pathetic primitive Christian fool! Wear the sticker or get fired! And while you're at it, stop being such a dumbass! Atheism FTW!"
(Okay, I made up that last part.)
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China is not going to overtake the US economy unless the US suddenly turns commmie. Then they'd beat us with experience.
* * *
Global warming sets record in Fairbanks, Alaska. -41° in late November is apparently a record hig-- what? Oh. Oh! Sorry! -41° in late November is a record low, and it proves than man-made global warming is real and happening now!!!
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This is interesting for a variety of reasons. Record droughts in Texas (caused by global warming) are revealing ghost towns and other forgotten sites as lakes dry up.
The article doesn't say whether all the lakes mentioned are artificial or not. The thing I find interesting: if some natural lakes are drying up and revealing these sites, it indicates that Texas was on the dry side in relatively recent times. Couple that with the fact that Earth has entered a cooling cycle and you ought to come to some interesting conclusions.
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How our political class maintains itself.
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Spice up your nuts! No, don't put Old Spice on your testicles; this is a recipe for making cinnamon pecans...and since I've got several pounds of shelled pecans in the freezer, I think I'm going to make use of this recipe.
* * *
Not today, though. Right now I need to jump in the shower, and then I must go to Bank #4.
...and of course there's a new issue of Switch Girl up at Mangareader.net. It's always like this.