While traders were receiving treats last week from the news of a Euro fix, it really is nothing short of a trick. We have been down this road before, and we will go down it again, and as we pass each exit for a real fix, the pain forthcoming gets deeper.
FOX Business' Judge Andrew Napolitano speaks with Nigel Farage, who has been on this story from the get go. Take a listen:
As traders woke up to learn of the impending blowup of MF Global, headed by former New Jersey Governor Jon Corzine, they found the futures in the negative. It should not have come as a surprise that Corzine, who blew an 8 billion dollar hole in New Jersey Chris Christie is now cleaning up, would fail miserably at MF Global. Fail at running the company yes, but apparently not in securing cash for himself, typical for Democrats in these positions. To think as recently as August Corzine was being considered by President Obama as a the new Treasury Secretary should indicate the level of complete incompetence leading this country.
This evening, Clusterstock reports of "hundreds of millions of dollars missing", which cannot be good for the markets, propped up by false fundamentals and already spooked by a myriad of issues, including on the domestic side a continuous mortgage meltdown.
But further concerns over the supposed Euro fix is what really what spooked the markets. Good money is being put after bad, bailing out entitlement expenditures which cannot, and should not, be sustained. As Farage put it years ago, the fixes won't work and we can only hope the markets derail this before things get really bad, as if they have not already.
Restated; they will soon run out of everyone else's money. Invest accordingly.
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