January 30, 2012
Are you kidding me?
MF Global Funds Feared "Vaporized" WSJ 1/30/2012 (subscription req'd).
What does that even mean? Vaporized!? Was there some type of chemical experiment conducted with MF Global's clients' money? I bet the clients never authorized that experiment. This story line would actually be funny if it wasn't so insulting and sad.
Here is what happened, so we can all understand this very technical financial vernacular: MF Global took money it was not authorized to take, made investments it was not authorized to make and lost the money on those investments. The money was not vaporized - it was lost, plain and simple. The only thing I do not understand is how Jon Corzine is not in jail.
(For those without a WSJ subscription, articles covering the same topic may be found here.)
Doug Hendee, CFP(R)
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).