Thursday, December 08, 2011

Hypothecation. It's a fancy word for legal theft.

Rehypothecation is a practice that occurs principally in the financial markets, where a bank or other broker-dealer reuses the collateral pledged by its clients as collateral for its own borrowing.



(Business Law Currents) A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.

MF Global's bankruptcy revelations concerning missing client money suggest that funds were not inadvertently misplaced or gobbled up in MF’s dying hours, but were instead appropriated as part of a mass Wall St manipulation of brokerage rules that allowed for the wholesale acquisition and sale of client funds through re-hypothecation. A loophole appears to have allowed MF Global, and many others, to use its own clients’ funds to finance an enormous $6.2 billion Eurozone repo bet.

I thought it was funny a couple of days ago when President Money Bags said this:

"Obama blamed the financial crisis and subsequent recession on a philosophy that left everyone to fend for themselves. “We simply cannot return to this brand of you’re-on-your-own economics if we’re serious about rebuilding the middle class in this country,” he said.

The president also said there is a “deficit of trust” between Main Street and Wall Street, and that big banks must “go the extra mile” to close it."

Ironic really. Since all the farmers who had their money flat out stolen, are left to fend for themselves.

How about ya'all stop stealing from us? Just a thought. And please send this memo to Olympus. Because that shit - is really fucked up.

Not as fucked up as farmers not being able to buy seed now.

There is a deficit of trust. A deficit that even though we do the right thing, PMB's buddies will get to steal with abandon. Then you "dear leader" will come in to tax us to cover up for those thefts.

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