The Chronology Of A Collapse: Santelli’s Primer On The PFG Debacle

The Chronology Of A Collapse: Santelli’s Primer On The PFG Debacle (ZeroHedge, July 12, 2012):

There remains some confusion about the timing of actions around the PFG Best disaster. From withdrawn salary cuts to liquidation-only orders to forced liquidations from Friday to today, CNBC’s Rick Santelli provides a succinct and shocking insight into what real money accounts and brokers have dealt with and continue to try to comprehend. The sad truth about where the money went is summed up by his guest that “we’re just hearing rumors; it could be, on a percentage basis, worse than MF Global.”

1 thought on “The Chronology Of A Collapse: Santelli’s Primer On The PFG Debacle

  1. When MF Global was caught, I knew all the other banks were doing the same thing. Since then, too many stories of bank fraud have broken verifiying the underlying malfeasance in the entire banking system.
    Any strong economy needs a credible and trustworthy market/banking system in order to survive. With the LIBOR fallout happening, it is clear the entire world banking system has hit the wall……too much leveraging has ended the game.
    In this case, $200 million is missing, about $10 million is on deposit. The chances are almost 100% that $200 million was never there in the first place…..it is all on paper.
    You folks have been great about suggesting Rolling Stone and Matt Taibbi’s articles on the LIBOR for those who want to understand the problem.
    The banks have been skimming hundreds of billions (probably trillions, we don’t know yet) out of every economy on the globe. This LIBOR problem is so much larger than 2008……it makes it a walk in the park by comparison.
    Normal business practices for all the major banks was to take $100 million and leverage it into $100 billion. They have done it too many times. The money stolen from all the world economies so far exceeds the amount of real money in the world that it boggles the headbone.
    LIBOR represents $800 trillion a DAY in money borrowed and loaned.
    The entire annual world GDP averages $50-65 trillion a YEAR.
    See the problem?
    The world economy is collapsing thanks to the corrupt greedy bankers once again…..this time, all the countries in the world are unable to fix or bail this out.
    It puts me in mind of what FDR’s FED chairman said when asked about the causes of the Great Depression of the 1930s. What he said stuck with me, here is his answer:
    “As in a poker game when the chips get concentrated in fewer and fewer hands, the other fellows can only stay in the game by borrowing. When their credit is up, the game is over.”
    That is what has just happened to the world economy.
    Thanks for all you do.

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