Sunday, December 11, 2011

MF Global

Here is a 23-min summary of the MF Global case: Capital Account of 12/08/11 from RT (first 23 minutes). What is your bank or broker doing?

Saturday, December 10, 2011

Whose gold bar is it?

The referenced article is a must read for all GLD holders and even for physical gold holders. Too many financial institutions perform unethical and illegal operations. MF Global brings to daylight some of the problems arising through rehypothecation in the paper and physical gold market. The article "The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold" comes to the conclusion that even allocated physical gold held in customers' names by mayor financial institutions is at risk. Is it time to take the metal home?

Wednesday, December 7, 2011


A new word we need to learn: re-hypothecation. Hypothecation is when a borrower pledges collateral to secure a debt. Rehypothecation, in short, means lending of property lent to one, but of whom one is not the owner. The biggest misuse of re-hypothecation might be the current MF Global scandal. Read this article to see how large and established financial institutions break the law or use loopholes to enrich themselves and have the unaware customers pick up the losses when the bets fail: MF Global and the great Wall St re-hypothecation scandal.