This leads to the second item which is the “super committee” and their inability to reach any type of compromise in re spending cuts and tax increases. Again this is a case of the Republican members of the committee looking to enforce a radical agenda rather than take steps to solve the country’s financial issues. The country is ready for the adults to assume control of the government but there doesn’t seem to be any one on the right who has the courage to do what is necessary for the country and not just toe the line outlined by FOX news. Once again the American public is further along that our “leaders”.
The final issue is the search for money at MF Global. How in the name of everything good and holy can the regulators (CME, SEC, FINRA, CFTC etc) allow this to happen post 2008? Have they learned nothing? An overleveraged brokerage house seems to have no internal controls and cannot get financing goes out of business. After the company closes nobody seems to be able to identify where a significant amount of client money resides. This company has been subjected to regulatory audits where the regulatory authority comes in and verifies the financial health of the company. Does this make any sense? How can people not lose their jobs at the SEC, FINRA, CME, CFTC etc? How can the Administration not demand Mary Shapiro’s resignation from the SEC?
This is one more in a string of institutional failures by the people who are paid to enforce the rules and protect the investor.