CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.
The market is done folks. ...Oh sure, there will be rallies and there will be selloffs. But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.
This isn't just about speculators - it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.
More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe.
The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.
Well folks, then none of your investment accounts -- not your IRA, 401k, not even your bank account -- is safe.
