Conspiracy Theory: Did Jon Corzine Sink MF Global on Obama's Orders?

I've written a lot about Jon Crozine's culpability, both moral and legal, in the fall of MF Global.  And while I am convinced that this poster boy for Wall Street malfeasance will not see a moment of jail time due to his butt-buddy friendship with the president, it never struck me that this might have been a set-up.

Not sure if I'm buying it, but Tyler Durden is selling it.

Imagine you are Ben Bernanke, or on the Board of Governors of the Federal Reserve. The time frame is July and August of 2011 and the price of gold is on a tear. Commodities inflation has been persistent and is breaking out everywhere. Your prediction that inflation “is contained” and is a “temporary phenomena” are beginning to look absurd. What do you do?

Simple. Hint that QE3, the primary drive of inflation, is coming and then fail to deliver at the September FOMC meeting. That takes care of the price of gold and the gold stocks. Ah, but those pesky commodities speculators keep making money and trading against what you want the markets to do. So what is to be done there? Hey Jon Corzine, how about you tank the largest broker for the small commodities punters in the world, and we let them twist in the wind? That will serve them right. Teach them to bet against the government approved scenario.

 Think it did not happen? Well think again. All of the pieces fit. It sure is convenient that all those commodities speculators are now out of the box. Also, who will want to speculate on commodities in the future given customer funds are no longer protected. Furthermore, commodities speculators are not a very “All American” group. From the authorities point of view they can say: screw them, who will feel sympathy? Hell, James Bullard, Fed Governor, in an interview on CNBC yesterday said the MF Global collapse proves that the system works. Yes it does Jim, for you. Personally, I have $90,000 at MF Global and I would like to have my honestly earned money returned. Unfortunately, the odds of that happening any time soon seem slim. In part because when MF Global entered bankruptcy the judge appointed a Trustee whose law firm has done substantial work for JP Morgan, a deeply interested party. We will probably never find out what happened here. But for those of us whose eyes are open the results speak for themselves.

This whole mess stinks to high heaven. I am with Gerald Celente, if the largest commodity broker in America can go bankrupt and nothing is done, then where can you put your money and expect it to be safe? I, for one, do not accept that Jon Corzine is stupid enough to lever up MF Global 40:1 and use the proceeds and customer money to bet on European sovereign debt. This was a hit, pure and simple. That is why there is no resolution to the problem, and it is just another example of the deeply corrupt US political/financial axis. It may take money away from a bunch of commodities speculators, and it may cool down the perceived inflation, but it is just another hole in the dike which is The US Financial System. A dike whose life can probably now be measured in months, not years.



Hey - I'm the guy who is convinced that Anthony Weiner's wife is a Saudi agent, that Barack Obama caused/exacerbated the Gulf Oil Spill Disaster of 2010 in order to justify his ashixiating energy policy, and that global warmists - backed by the president - sabotaged multiple US climate satellite launches, fearful that the truth would destroy their narrative.

But I'm not 100% sure on this one.  Why?

I, for one, do not accept that Jon Corzine is stupid enough to lever up MF Global 40:1 and use the proceeds and customer money to bet on European sovereign debt.

It wasn't stupidity, it was just a liberal's way of doing business:

Jon Corzine went all-in with their company's(and their customers?) money on a bad bet - that sovereign debt would always be bailed out. A bet made with a 2008 mentality. A bet made by a man who thought the private sector was indistinguishable from the public, who treated customer accounts as if they were no more than taxpayer money, funds he could squander with no accountability.

And playing with the books was also a Corzine staple:

Just 48 hours into his new role, Gov. Chris Christie said New Jersey faces a $1.3 billion shortfall in the current budget and blamed former Gov. Jon Corzine for setting him up to fail by hiding the depth of the problems.

"He was trying to make it as hard as he possibly could," Christie said. "Avoidance of the facts and avoidance of the truth was a staple of the Corzine administration."

But I won't discount Tyler Durden's conspiracy theory entirely.  Corzine and Obama were in bed together, and Jon really, really wanted that Treasury position.  Do you think either one of them cares how many innocent lives they destroyed, if the end result would be increased power for both as well as the further implementation of their socialist agenda?

That is believable.  Hence the "Corzine as Obama hit man" theory has enough legs to get published.  Here, at least...