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A series of unfortunate misallocations

Jon Corzine’s Mulctuary Money Management MF Global is still in the news.  Is it possible that the only banker we are likely to see doing a perp walk is the former Democratic governor of New Jersey?  There’s some kind of weird karma here.  Anyways, Mr. Poe, er, sorry, Jon Corzine’s firm has something like $28 million bucks on hand deposited with J.P. Morgan chase.  The Baudelaire orphans, er, clients of MF Global are trying to get access to this money, which may be all they can recoup, but Chase says they don’t have to give it to anyone.  Oh, wait, three hours ago, a judge ruled that MF Global can use this money to pay its trustee and operating expenses.  So, there you go.  The answer to whether the clients are screwed definitively.

In the meantime, federal regulators haven’t decided yet whether the misallocation of funds was legal or not.  It may have been perfectly legitimate for Corzine to put client’s money up as collateral against losses on risky sovereign debt bets.

Regulators now have a full picture of money transfers in the final days of bankrupt brokerage MF Global, and are working to sort out which transactions were legitimate, a top official told Reuters on Wednesday.

“We are far enough along the trail that we know where all the money went. Now it’s just finding out which ones of those transactions are legitimate and which ones of them are illegitimate,” said Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global.

“We certainly don’t want to lead anyone to believe we don’t know what happened. We do know, and we see where all the transactions went,” she said.

In an interview, Sommers told Reuters that just because money was transferred out of a customer account to the broker-dealer account “doesn’t mean it was illegitimate.”

It turns out that the transfer of the money from client accounts to the broker-dealer account required a permission slip from the clients.  And once they track down all of those permission slips, the $1.2 billion dollar losses will be legal.

Good luck with that.

I’m going to make a prediction that MF Global didn’t ask anyone for permission.  I’m going to bet that the movers and shakers just decided amongst themselves that they would allocate the funds and that things would just turn out for the best.  No need to ask the clients.  After all, that’s what they were paid to do.  They were the professionals, they were the experts. Clients don’t have the experience and knowledge of how the machine works to understand how these transactions work.  It’s much better to just trust our own judgement about this.  The clients may disagree and, if given the choice, might even try to stop us, but we are wiser than they are.  Besides, there’s a great opportunity here to make a killing.  Our clients would be upset if we *didn’t* do it.  Let’s go with throttle up!

It’s not like Jon Corzine doesn’t have a history of substituting his own judgement for that of other people who put their trust in him. If you want to know why the money from MF Global is missing, it’s because he made a decision without consulting the people who actually count- his clients.  He’s done it before and he got away with it so why shouldn’t he just do it again?  In fact, this might be a real test of integrity and loyalty for Barack Obama because Jon Corzine practically delivered the nomination to him on a silver platter:

It had to be Corzine.  California wasn’t cooperating, Pennsylvania’s delegates weren’t all onboard either.  Those two states could have been problematic and upset the narrative.  Moreover, sparing them the choice of taking the dive and going against their voters or upholding state law requiring the delegate vote  on the first ballot according to the state primary results meant that the voters wouldn’t really have anything to complain about.  California is a big state.  It could have generated a lot of complaints.  But Corzine could be counted on to deliver for his buddies on Wall Street.  It was only one small little state that gets a lot of ribbing but it has a wealth of delegates.

People may be wondering when I’m going to get over it.  It just makes me a tiresome “malcontent”.  Isn’t that right?  What can I say?  My standards are very high when it comes to the electoral process.  A vote is a sacred thing.  And when someone or someones who you trust misallocates your votes, it’s just as much of a theft as when they misallocate your money.

On of the first things a malevolent party does when it wants to take hold of power indefinitely is mess with the vote.  They screw around with the ballots that get lost or destroyed or they flood the ballot boxes with a few thousand extra votes or they change votes using erasable ink pens.  So many different ways to make sure that the voters’ true intentions are thwarted.  And now we have all of those voting machines…

Stealing is stealing and Jon Corzine is a repeat offender.  I guess that makes Barack Obama the recipient of stolen goods.  He doesn’t even have the benefit of ignorance as to where the goods came from.  That makes him a conspirator.  Anyway, that’s the way I see 2008.  Fraud, theft and arrogance.  We’re all paying for it and like the unfortunate clients of MF Global, we’ll have no justice until someone is held accountable.

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26 Responses

  1. I hope you never get over it, I won’t.

    • No, I won’t. And the people who find this whining from tiresome malcontents are going to have to put up with us for a long, long time. In fact, I’d drop the fucking attitude about just how tiresome we are because when it comes to the general election, we still have votes that they need.
      It may not have been enough to change the course of history in 2008 but I’m going to bet that in 2012 those votes are going to be very, very valuable. The people who gave themselves to Obama willingly can probably be counted on to do it again in 2012. Their opinions don’t matter anymore because Obama’s already screwed them silly and they still put out for him. But us and the other people Barry has disappointed in the middle class? Well, let’s just say it will be harder to screen us out because despite what they might think, we’re not all bubbas.
      The party is going to be in big trouble.

    • if some one steels you car and you get to see him driving it every day, do you just get over it? If some guy steels your car and your family and friends say “finders keepers, losers weepers” and the cop on the corner watches the whole thing and he says the same thing, then you have to watch the creep drive your damn car every day, do you just f*cking GET OVER IT? I do not think so.

  2. I heard someone today say that our personal votes are actually Free Speech statements – and the stealing of our free speech and substitution of someone else’s words for our expressions of free speech is against the Constitution. Oh, wait……what did/does Obama and Friends know about that document??

    I also will never get over it. Never.

  3. Jane Caro’s 8 marketing rules for politicians, based on her career in advertising and experience with brand loyalty:
    1.) Underpromise and overdeliver.
    2.) Be voter centered. Convince your voters that you put them first. Take risks in defense of what you believe even if it may cost you personally.
    3.) Don’t sacrifice what your core voters always liked about you to buy new voters.
    4.) All voting decisions are made emotionally and then post-rationalized. There are two emotions that change behavior: Hope and Fear. If you want to change behaviors, get to know what are the voters’ hopes and fears.
    5.) While voting decisions are made emotionally and are post-rationalized, you must give voters ammunition to defend their choice.
    Policy is important.
    6.) Raise voters’ morale and your own. We want to vote for people who look like they want the job and once they’ve got the job, look like they love the job.
    7.) Lower voter anxiety about YOU.
    8.) Voters want politicians to love their constituency.

    If we go by what Jane has laid out here, I can’t think of one reason to vote for Barack Obama in 2012 unless he pulls an deus ex machina. He has violated every one of these rules. He overpromised and waaaay underdelivered, He never takes risks in favor of his voters. He’s dumping the Democratic base to chase independent swing voters. He has no idea what our hopes and fears are (hin, it’s not the deficit) His policies are crap. He doesn’t look like he loves the job and he allows his Treasury Secretary to tell the nation that their lives are going to be much tougher. And he doesn’t appear to love his constituency. He’s very cool to the people who sacrificed everything to get him into office.

    A lot of people who are Obama supporters sneer that Hillary wouldn’t have been any better. But I don’t believe that. I don’t think anyone with a talent for politics would have violated all of the rules listed above. Maybe one or two, but all of them??
    This is what it takes to be a leader. You have to know your voters and be willing to risk everything for them, including your career. And in return, the voters will reward you.
    Hard to say how it will turn out in 2012. Both parties are playing the fear game. So far, we’ve got no one doing hope.

    • A very sad day for this country and our constitutional rights. Remember: Obama claimed to be a Constitutional lawyer – he’s unlike any constitutional lawyer I’ve ever seen.

      GGDrafts: ACLU on Obama’s non-veto
      ggdrafts.blogspot.com

  4. Many Republicans will be voting hope. Millions of Republicans hope for a Christian Satanist (whether Dominionists or Rapturanian-Armageddonite is secondary to them) nominee who will reflect and realize their deepest desires to restore America to a New Dark Age of Faith. If Romney gets nominated will they still turn out? If their hate for Obama outweighs their disappointment over not getting the Christian Satanist candidate of their deepest dreams, then yes they will.

    The Democratic voters will end up deciding whether their hate/rage/betrayal at Judas Horse Obama’s record outweighs their fear of a Republican President. I think it depends on who the R nominee is. If it is Romney, then hate for Obama will outweigh fear of a Republican President, and many disgruntled Democrats will vote Third Party or write someone in. If it is a Christian Satanist like Bachman or Paylinn, or a Trojan Horse filled with Christian Satanists like Perry or Gingrich, then some Obama-dislikers will vote Obama regardless. Some still won’t. But how many?

    To lower the chances of fear outweighing hatred among some Democratic voters, some of us would really like a Republican nominee we don’t have to be all that afraid of. For me, that nominee would be
    Romney. So I will vote for Romney in Michigan’s Republican primary.
    I don’t know how many Democrats or ex Democrats would feel the same way. I would suggest that those Democrats who . . . lets say . . . consider Gingrich “a bridge too far”, the best thing would be for such Democrats to all re-register R to try their hardest to get Romney nominated so as to burn that bridge-too-far down ahead of time.

    (I am typing this on one of the sad little computers at our publik liberry. The computer is sad and little and has zero link-fetching capabilities so far as I can tell, but its programming offers the firefox choice, which appears to have none of the “ugly icon” proglems which
    Microsoft Explorer imposes).

    • I like Huntsman best. Mitt may be ok but he’s got a lot of work to do to convince me. Obama may the lesser of multiple evils but he’s still evil.

    • I would suggest that I don’t care which one of the insane Republicans is nominated, I wouldn’t vote for one of those nutcases ever. Hatred only pushes me so far and they are all “a bridge too far”.

      Like I’ve seen written “kool-aid is a hell of a drug”, well hatred which causes you to vote against your own interests is just as bad and stupid.

      Third party is a different story but there has to be one with a tiny little chance to succeed in that case.

  5. hmm.. I tried leaving a comment here on the public library’s sad little computer and nothing shows up. Mechanical difficulties? Different programming? New moderating-before-posting policy?

    • Well, this little comment showed right up, so maybe the other one just evaporated.

      To synopsize briefestly, when the election approaches, many more-or-less liberal voters will decide whether their hatred for Obama outweighs their fear of a Republican President or vice versa. Let’s tip the balance towards hatred for Obama. Let’s get the R’s to nominate
      a candidate we don’t have to be deatly afraid of. In my mind, that would be Romney. I really don’t want a Christian Satanist getting its hands on the Launch Codes, so if the Rs nominate one of the many star players from their Christian Satanist lineup, I will vote Obama all over again to avoid facing the Last Roundup at Armageddon Ranch.

      • Nothing will move me to vote for Obama. I say blow it up .!

        • I’m with you, ncpuma. Nothing will move me to vote for Obama.

          • Well, that certainly is a viewpoint, and dispassionately speaking, as valid as any other.

            The problem is that when the Rapturanian Armageddonites say Blow it all up, they mean literally not figuratively. And when you consider how deeply the Christian Satanists have penetrated and subverted the U.S. Air Force Academy at Colorado Springs, and you wonder how many Rapturanian Armageddonites have what degree of control over how many hydrogen bombs in how many of our SAC long range bombers . . . do you really want a Christian Satanist President who feels he/she was elected to find out?

            Just a cautionary thought which will move some people. Enough people to move the election one way or the other? Maybe not. But if you want me to join you in voting against Obama later, then I hope you will vote to get Romney nominated over on the R side sooner.
            That would raise the number of No bama no mo’ votes in 2012.

    • I swear, I’m not moderating you.

      • If this comment is directed to me . . . my first assumption has always been that indeed you are not moderating me. My observation remains that random technical difficulties strike the comments section without warning.

        (If this comment was directed to someone else anyway, then I apologize for responding).

  6. Again, RD, you are ahead of the curve.

    I too will never forget and I’m not letting those around me forget either… That sickening feeling in the pit of my voting soul during the farce that was Primary ’08 still lives in me.
    It’s not about Hillary anymore..it’s my vote gawdammit.
    They stole my vote and all the voters who chose the competent one over the petulant man child. We were right and they pulled a fraud.

    All my ivory towers of my ideals about our country came crashing down. I grew up.
    Democrats are as evil as the Republicans. But I already expected it from the Republicans. When I realized the Dems are no better…well it opened my eyes.
    I hold Obama and his minions/denier and excusers responsible.
    The sad part…most of the democrats don’t even know it. They are too busy trying to survive.

  7. MSN headline: Dems drop millionaires tax in year-end dispute.

    Did anyone really expect them to fight for this? There are people that think Obama will veto the indefinite detention of Americans in the defense bill. lol

  8. The Dodd-Frank Financial Reform Act did not do a good job of making sure that CEOs do not gamble with other people’s money. That’s what we’ll find out after all the investigations are finished. In the end, Corzine did not do anything illegal.

    • Yesterday at the Senate Agriculture hearing on MF Global, Sen Debbie Stabenow opened up with the question, why did they sign the SARBOX statement that they were in control. SARBOX makes the CEO. COO and board responsible for statements of risk.

      One month later they are in bankruptcy court, Criminal and civil penalties are possible, MF Global is providing an opportunity for more detail on what goes on in the Investment banks. Corzine could be in big trouble.

      • The most interesting question is why the Senate Agriculture Committee would care about this. To the best of my very limited reading, many full-time professional farmers have to spend money on “futures” and “hedging” and stuff to keep from being bankrupted from one year to another by a super bad crop or a super bad price crash. They place their money with what everybody tells them are reputable companies who handle this “hedging” and “futuring” and stuff. They had no idea that these reputable companies then turn around and place their money in the strong caring hands of MF Global. So these farmers feel quite rightly looted and raided and stolen from by sneaky thieves in the night, and they have brought their concerns to Stabenow among others.

        They should get all their money back first before any open-eyed creditors who dealt with MF Global by name get back anything at all.

  9. RD, is ahead of the curve.

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