“Your Money Is Not Safe”: Gerald Celente on the Moral of MF Global’s Collapse

December 15, 2011 | Author Ed

By Aaron Task | Daily Ticker posted by @Philosopheer'sStone

Jon Corzine returns to Capitol Hill Thursday for the latest hearing on the implosion of MF Global, this time before a House Financial Services subcommittee.

As the search for the “missing” $1.2 billion in client funds rolls on, Gerald Celente has a message for all Americans:

“If you don’t have your money under your pillow or mattress, you don’t have it all. It’s not safe.”

Along with hundreds of other MF clients, Celente is scrambling to get his money back — he claims he had over $100,000 in a brokerage account at the doomed firm.

“This is really huge,” he says, noting MF Global’s filing is the 8th-largest bankruptcy in U.S. history and this episode is the first time clients of a regulated commodities futures brokerage have seen their funds “disappear” because of a broker’s failure, rather than their own bad trades.

MF’s collapse and the “missing” client funds may seem like a one-off — an isolated incident. Celente’s bigger point is that banks and brokerage firms can legally use client funds (i.e. your money); that “comingling” funds is neither rare nor a scandalous practice.
The Scandal Is What’s LEGAL...more here