Ann Barnhardt is a successful and trusted a hedge broker specializing in cattle and grain. She's decide to close the brokerage portion of her business, and she posted an open letter on her blog to explain why. It is stunning in its moral clarity.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg....
Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
So it turns out that Barack Obama simply wasn't samrt enough - or man enough - to destroy America. It was one of those "smart people" that we were told he would surround himself with that did it, albeit unwittingly, for him. That's another danger of a weak and feckless leader, of course - others move in to manipulate him to their best advantage.
And that is something Corzine did a masterful job of. He was the Obama Administration's personal financial adviser (as Joe Biden brags about here), and was the president's hand-picked Wall Street re-election campaign bundler, for which he was to be rewarded with the post of Treasury Secretary once Geithner departed.
One might say we dodged a bullet (as I have said New Jersey has), but even if Corzine never got our hands on our tax dollars in Treasury, he appears to have done fatal damage to a once-trusted segment of the financial sector with the theft of hundreds of millions of dollars of customer money. He might have just opened the barn door and let the the Horsemen of the Apocalypse come storming out upon us.
He should be jailed, immediately, but we already discussed why Obama won't allow that to happen. A simple man, our president is, and the millions Corzine raised for him are more tangible than the idea that turning a blind eye to Dirty Jon's blatant theft puts lie to all of his "Wall Street versus Main Street" rhetoric.
The #OWS crowd will be disappointed, as shortly there will be little left to occupy. Obama will be confused , as soon there will be little wealth left to re-distribute. But I feel better knowing that Ann Barnhardt is still out there, waiting for the regime to fall, and ready to come back to help fix things when it does...