We are getting closer and closer to some unknown upset in markets and possibly the sanctity of law. The MF Global blowup certainly demonstrated the latter.
Is MF Global a one-off or is it just the first cockroach among many? No one can provide a definitive answer to that question, although the tragedy of more cockroaches is almost unimaginable to what it will do to the Rule of Law and wealth. Here is MsCreant’s take (with my emboldening):
“What do you advise?” At first blush, I find advice to be condescending. Who am I to advise? Buy precious metals? Have some cash on hand out of the banking system? Take all your cash out of the collapsing financial system? Stock up on some basics for emergencies? That might be decent advice but it is not the point. We need to be flexible. Focus on one individual’s situation, one company, or one country for that matter will soon be unsustainable. Few of us will escape the consequences of participation in the financial system. It is both broken and corrupt. Our “inability to get to our money” is going to cascade into each other’s lives, blowing up all kinds of relationships. We must keep our eyes and ears peeled for stories from multiple perspectives.
We are in uncharted territory. I don’t pretend to know what is about to happen, especially if/when the system collapses. Will those with bank accounts lose? How about brokerage accounts? What good are government guarantees when government is broke and collapses?
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