Posted by rahrens_1 on December 06th 2011 at 08:45 am
Below find an insightful interview by Ann Barnhardt, she specialized in cattle and grain commodities and announced a few weeks back that she, in good conscious couldn’t continue her business. She had no confidence in the integrity of her clients investments, including non margined cash sitting in their trading accounts.
She goes on quite a rant on MF Global and explains how people who were doing basic hedges had there accounts automatically moved to other firms where they effectively got margin called to put up more funds. She also notes that if you were a smart investor and actually got out in time the bankruptcy trustee can apply clawbacks to you and go after you for funds! Basically you could get screwed over 3 times.
In conclusion she basically says get out and get into physical things.
See full transcript or audio cast here.