{"id":47035,"date":"2019-07-02T18:07:34","date_gmt":"2019-07-02T23:07:34","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47035"},"modified":"2019-07-02T18:07:49","modified_gmt":"2019-07-02T23:07:49","slug":"custodial-risk-in-the-post-mf-global-era","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47035","title":{"rendered":"Custodial Risk in the Post MF Global Era"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.armstrongeconomics.com\/world-news\/corruption\/custodial-risk-in-the-post-mf-global-era\/\">Custodial Risk in the Post MF Global Era\u00a0<\/a><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/s3.amazonaws.com\/armstrongeconomics-wp\/2013\/06\/Corzin-Obama.jpg\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p><strong>QUESTION:<\/strong>&nbsp;Martin:<\/p>\n\n\n\n<p>You have occasionally made short-quick comments that have made me loose sleep ! One of your past comments quipped that we equity\/bond investors should entertain the idea of having the actual certificates to our stock\/bond investments (which are typically digital entries held at brokerage houses) mailed directly to us instead of having them held in places like Depository Trust Company (Cede &amp; Co). My question is\u2014if a contagion occurs and\/or mass panic erupts like in 2008, would this type of situation be a serious threat to getting our money\/investments back, since the actual certificates for 98% of investors are not held personally, but instead seem to be held in a \u201cstep-ladder type of depository companies\u2014supposedly for our benefit ??<\/p>\n\n\n\n<p>PW.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/d33wjekvz3zs1a.cloudfront.net\/wp-content\/uploads\/2018\/12\/Custodial-Risk-1.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p><strong>ANSWER<\/strong>: The biggest danger is that the New York boys&nbsp;<strong>OWN<\/strong>&nbsp;the SEC and the&nbsp;<strong>TREASURY<\/strong>. When MF Global went bust because of trading by ex-Goldman Sach\u2019s Jon Corzine, using their client\u2019s money to trade in London, he was&nbsp;<strong>NEVER<\/strong>&nbsp;prosecuted for illegally using $1.6 billion of 26,000 client\u2019s money. He was well connected right into the White House with Obama. Nobody went to jail and clients had to wait in bankruptcy to get their money \u2013 even cash in the accounts. There are&nbsp;<a href=\"http:\/\/The Hidden Risk of Broker\/Clearer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>clear risks<\/strong><\/a>&nbsp;with the broker and clearer. As long as the SEC is in gold of former Goldman Sachs staff, there will&nbsp;<strong>NEVER<\/strong>&nbsp;be an honest regulator. Trump promised to drain the swamp, but he is surrounded by too many swamp creatures. Even when all the banks pled criminally guilty, the SEC exempted everyone from losing their licenses. They would&nbsp;<strong>NEVER<\/strong>&nbsp;do that with anyone outside of New York City. The SEC will&nbsp;<a href=\"https:\/\/www.armstrongeconomics.com\/armstrongeconomics101\/basic-concepts\/why-you-should-take-delivery\/\"><strong>never prosecute<\/strong><\/a>&nbsp;the banks \u2013&nbsp;<strong>EVER!!!!<\/strong><\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Custodial Risk in the Post MF Global Era\u00a0 QUESTION:&nbsp;Martin: You have occasionally made short-quick comments that have made me loose sleep ! One of your past comments quipped that we equity\/bond investors should entertain the idea of having the actual certificates to our stock\/bond investments (which are typically digital entries held at brokerage houses) mailed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[3306,26189,26188],"class_list":["post-47035","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-barack-obama","tag-custodial-risk","tag-jon-corzine"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47035"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47035\/revisions"}],"predecessor-version":[{"id":47037,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47035\/revisions\/47037"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}