Friday, December 9, 2011
Global Hits Home
Former New Jersey Governor Jon Corzine hit close to home when he was chief of MF Global. We got home late last night and I was watching the CBS Evening News on DVR when they showed a scene I had seen before.
I told LuAnn, Honey that is Paul and Steve's neighbor! I did a google search a little bit ago and here it is.
It was a very well done piece by the lady on CBS News. I know people in the video and have driven those roads near Washington, Iowa, some 600 miles west of us.
Farmers like the Brennamen's had their commodity fund account just disappear overnight by fraud. You know it could be me or you and a local bank or stock fund. The same effect was felt by local farmers in the stock market crash of 2008 and we met a lady who lost the same amount in her 401k.
This though is more obvious fraud as you know the firm who did it and you know who was in charge. I emailed a cousin of Rob and he said they will be OK but that would make for some sleepless nights with $400,000 gone from your account one morning when you wake up and you didn't cause the transaction.
We live in a time of big numbers like I reported yesterday. It is hard to grow and even operate your business with shennanigans like this taking place.
As you do your taxes this month, where is all of your money? I ask but I am asking myself the same thing. One account lost $90 last quarter and $99 the quarter before. The money is just gone due to reduced market values when everything I buy has gone up.
A harder question yet is how safe is that money?
I got the fertilizer bill yesterday I told you about and it wasn't near as much as I thought and now I have to scrutinize it to see why it isn't what I ordered.
Whom do you trust these days?