A Fractal In A Frying Pan (love the title):
While Gerald Celente is crying about his lost six-figure account, Bill Fleckenstein also has personal money tied up with MF Global. He is hopeful that he will get it back but is critical of the authority figures involved. Celente does not expect to get all of his money back. Ann Barnhardt of Barnhardt Capital Management has shuttered its operations after six-years in the business. She did not feel like her clients’ funds were safe in the futures and options market any more. Lawrence Lepard, who posted on Zero Hedge, wonders if the MF Global failure was a hit job done by the Fed. My point is not about who is right or wrong (time will tell), but that we are getting an early, slow paced look at things to come—the story telling, guessing, shock, denial, hopeful strategizing, negotiations. The success, failure, triumph, rage, loss, and sorrow. As we move through time and defaults, the pace of people finding out that they “can’t get to their money” is going to pick up.
We have seen the unpleasant result of default in the private sector as governments have striven to cover for their less-than-private financial systems, but we have yet to see the abuse governments will foist upon the citizenry due sovereign default.
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