4 Reasons To Be Even Less Optimistic About The Global Financial System

The cracks in the ice are getting bigger. At this point it is really hard to have much confidence in the global financial system at all. They told us that MF Global was an isolated incident. Well, the horrific financial scandal over at PFGBest is essentially MF Global all over again. They told us that we would not see a huge wave of municipal bankruptcies in the United States. Well, three California cities have declared bankruptcy in less than a month. They told us that we could have faith in the integrity of the global financial system. Well, now we are finding out that global interest rates have been fixed by insiders for years. They told us that Greece was an isolated problem and that none of the larger European nations would experience anything remotely similar. Well, what is happening in Spain right now looks like an instant replay of exactly what happened in Greece. So who are we supposed to believe?  Why does it seem like nearly everything that "the authorities" tell us turns out to be a lie?   What else haven't they been telling us?
 
The following are four reasons to be even less optimistic about the global financial system than you were last month....
 
#1 PFGBest Is MF Global All Over Again
 
Do you remember that whole MF Global thing?
 
Do you remember how hundreds of millions of dollars of customer funds were "missing" due to "accounting irregularities"?
 
Well, it is happening again.
 
PFGBest is a brokerage firm in Cedar Falls, Iowa that mostly handles agricultural futures.
 
All hell broke loose when the National Futures Association discovered that a bank account that was supposed to be holding 225 million dollars of customer funds was only holding about 5 million dollars instead.
 
So where is the other 220 million dollars?
 
That is a very good question.
 
Of course it is not a promising sign that the head of PFGBest tried to commit suicide when this news came out.

A lot of PFGBest clients are going to be absolutely devastated by this scandal.  The following is from a recent has been treating his wife ....
 
During the conversation, according to the criminal complaint, Lizon's wife told the woman that her husband had kept her chained up with metal padlocks and chains for about 10 years. The woman noticed scar tissue on the victim's hands and ankles. Lizon's wife told the woman that the scars were from the chains tearing into her skin.
 
Lizon's wife told the woman that she and her husband were originally from Czechoslovakia, and that they live in Leroy, W.Va.
 
According to the complaint, the woman told investigators that the feet of Lizon's wife were "mutilated and swollen," one of which was missing a considerable amount of skin. Lizon's wife told the woman that her husband smashed her foot with a bucket or scoop attachment of a farm tractor.
 
Lizon's wife also told the woman Lizon called her his "slave," and that whenever her husband entered the room she had to kneel down before him, according to the complaint.
 
Can you imagine anyone doing that?

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Can you imagine any husband chaining his wife up for 10 years?

That is so sick that it is beyond words to describe it.

Unfortunately, that is not just one isolated incident of depravity in a world filled with goodness.

The truth is that the entire world system is saturated with depravity and corruption.

If anyone is willing to stand up for "the integrity of the global financial system", I challenge you to leave a comment below explaining to the rest of us why we should still have blind faith in the system after everything that has happened.

I don't imagine that too many people will even attempt to take me up on that challenge.

Written By: Michael T. Snyder