Is Any Broker Held Account Safe?

The MF Global scandal should have put you on double super alert regarding your trading accounts.
MF Global mixed company funds with their client funds, used that as collateral for short term loans
and bet the house on Greek bonds that blew them up. As Rick Perry might mumble, "ooops!"
Except that if you had an account at MF Global you are completely screwed. Any positions in trades you want to keep have new margin calls. To keep that trade in play, you have to immediately raise the cash to meet the new margin on your trade.

So where does that leave you? Six years ago,  I read an interesting historical book on the early history of wall street tycoons in the 1840's by Daniel Drew, who founded the Wall Street brokerage firm of Drew, Robinson & Company in 1844. The Book is called "The Book of Daniel Drew" and is a fascinating account of Mr. Drews life in his own words.  Mr. Drew was in cahoots with Jay Gould and James Fisk in the infamous battles over ownership of the Erie Canal and Erie railroad Company with Commodore Cornelius Vanderbilt. And, paraphrasing here, one tenet that he underscores time and again is you can't compete against the big boys unless you have inside information. That is where we
sit today, we don't have inside information like the big Wall Street players. However, as the MF Global debacle clearly illustrates  the corruption continues on Wall Street, much like it did in the days of the Erie Railroad.

As Jessie, at Jesse's Cafe Americain clearly states Who and what is safe today?

14 NOVEMBER 2011

Gold Daily and Silver Weekly Charts - Who and What Is Safe?

With all the insider trading, ponzi schemes, accounting frauds, and misapporpriation of customer assets, investors have to be asking themselves,'what is the real value of things, what are the hidden risks, and what is really safe anymore?'

So the average person seems to be flocking to US Treasuries, often held for them by brokers. This rush to paper dollars may be the last bubble, the great killing field of personal wealth and value, as the oligarchs take your savings and wipe you out with a few strokes of the keyboard.

If you think they will protect and save you because you are 'one of them,' and vote their party line and watch their news channels and promote their interests and look down on your fellows, you are wrong.

You are not one of the elite, the .1%, except in your own misplaced aspirations, and delusions of grandeur. To the power of darkness in high places you are prey, and your purpose is to be devoured.

The time to do something to protect yourself and your family, and restore equal protection and the rule of law, is now. You will not appease the madness by throwing victims to it, and hoping it becomes satiated. Its hunger only grows, and serves no other than itself.

See Jesse's blog here.

I would suggest you consider a small investment in physical gold and silver for the upcoming maelstrom.