(Washington Post) Barry Ritholtz–The systemic risk revealed by MF Global’s collapse

Watching the MF Global saga unfold, I had to wonder: “How was it possible for a broker dealer to tap segregated client monies to speculate in risky assets and lose billions?”

MF Global’s story, as you will soon understand it, raises serious concerns for any investor. That the activities that led to MF Global’s collapse were possibly legal (!) is stunning. The details are complex, but follow them through to the end and you will see all of the problems of our system ”” political corruption, excess leverage, focus on short-term profit at the expense of survival ”” in one sordid affair.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, Credit Markets, Economy, Ethics / Moral Theology, Law & Legal Issues, Stock Market, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Theology