Sunday, October 30, 2011

MF Global Hires Two Bankruptcy Legal Advisors As Chapter 11 Looms

The deadline to submit a bankruptcy filing to the Southern District of New York is around midnight, which probably explains why even as MF Global is proceeding at a feverish pace to sell parts or all of it to what appear increasingly skittish investors (who, like China will likely wait until the stalking horse auction to show their bids), it has, as the WSJ has just reported, hired bankruptcy and restructuring lawyers in the face of Weil Gotshal, best known for collecting hundreds of millions in hourly legal fees for its work on the Lehman bankruptcy case, as well as Skadden Arps. It appears that the sale process has not gone quite as well as hoped for, and now the company is bracing for the worst with just under 6 hours left to iron out a going concern solution.

Guest Post: The Greatest Short - Why All Correlations Are Moving To 1

The entire fractional reserve banking system rests on the premise that the short currency long assets/loans trade works, by creating a future economy that provides real greater output to sustain the circulated currency, because expunging it through deleveraging is a dangerous process for bank balance sheets and a deflationary event. The great question at the present time is: Has the recent credit expansion provided the US or Europe with an economy which can sustain the currency stock in circulation with it's accruing interest or has the malinvestment been so bad, that the currency amount in circulation is unsustainable and the resulting deflation will be met by central bank debt forgiveness to the currency shorters. When banks create currency on their balance sheet and trade it for an asset, they sell something they do not have and which they have to repurchase in the future! This mechanic in an environment of latent deleveraging, and massive policy intervention by central banks and governments generates 'Risk on, Risk off' and the banking systems gyration towards selling short currency or covering versus all possible assets is pushing all correlations to 1.

Steven J. Baum | Foreclosure Mill Fraud Busted by Susan Chana Lask-MERS and Mortgage Fraud Detailed (VIDEO)
10/30/2011 - 18:17
If you are reading this "Sloppy Stevie," you might want to watch your back. Looks like you just pissed off all of America... 
10/30/2011 - 16:17
"Unless the FCBs step up to the plate much more than they have in the past couple of weeks, either the Treasury market will collapse, or the stock market rally will fizzle, or both. We’re not there... 

For those who don't expect something for nothing...

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