Gerald Celente, Jim Willie, Ann Barnhardt and Marc Faber: â€˜Get The Hell Outâ€™
â€œItâ€™s very dangerous to put everything in cash with MF Global or another financial institution, because Iâ€™m not too sure about the law . . . if the law will protect you as a depositor or an account holder,â€ editor of theÂ Gloom Boom Doom ReportÂ Marc Faber tells Bloomberg.Â Get my next ALERT 100% FREE
Whether the messenger comes way of an up-straight and straight-up N.Y. City Italian, an exiled American living in Central America, a young woman totting firearms and a Bible, or an eccentric Swiss-born money manager living in Chiang Mai, Thailand, each warn investors and savers that cash on account is not safe at financial institutionsâ€”no matter how much the FDIC or SIPC insures.
Gerald Celente, Jim Willie,Â Ann BarnhardtÂ and, now, Marc Faber warn the runs on Greek, Spanish, Italian and several Eastern European banks will eventually come to the U.S.Â And if investors and savers think theyâ€™re covered in the event of a failure, a media-downplayed ruling by United States Court of Appeals for the Seventh Circuit of Aug. 9, regarding the bankruptcy case of Sentinel Management Group, too many will come to know that their cash is most definitely exposed to what many say is legal theft.
â€œThe system is rigged. . . if you donâ€™t have it [assets] in your possession, you donâ€™t own it,â€ said Celente, following word that hisÂ commoditiesÂ brokerage account was seized in Jon Corzineâ€™s MF Global bankruptcy of Oct. 31, 2011.
â€œJPM has seen fit to gobble private accounts at both MF Global and PFG-Best, with regulatory blessing as the courts sprinkled fascist holy water,â€ writes Jim Willie of theÂ Golden JackassÂ newsletter.
â€œIf you donâ€™t understand what â€˜get the hell outâ€™ means, thereâ€™s not much I can do for you,â€ Ann Barnhardt commented, after hearing of the Seventh Circuit of Appeals ruling.
In the case of Sentinel, its creditor, BNY Mellon, contended that its secured loan with the ChicagoÂ futuresÂ brokerage firm takes priority over other loans which may have been secured by Sentinelâ€™s pledge of allocated accounts.
â€œThe appeals court affirmed an earlier district court ruling that the bank had a â€˜secured positionâ€™ on a $312 million loan it gave to Sentinel, which turned out to have been secured by customer money,â€ according to Reuters of Aug. 9.
â€œI donâ€™t think thatâ€™s what the CommodityÂ FuturesÂ Trading Commission had in mindâ€ with its requirement that brokers keep customer money separate from their own,â€ Reuters quoted Sentinel trustee Fred Grede.Â GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
â€œIt does not bode well for the protection of customer funds,â€ he added, â€œIâ€™m sure Mr. Corzineâ€™s attorneys will get a hold of this ruling and use it for all itâ€™s worth.â€
Other than strongly recommending that idle cash be removed from U.S. banks andÂ broker-dealers, Faber says investors and savers, alike, should hold someÂ goldÂ to protect their savings from another insidious means of â€˜institutionalâ€™ theft in store from them in the future: the loss of purchasing power of theirÂ Federal ReserveÂ notes.
â€œI think they [Fed] will print money and that eventually everything will become more expensive. . . and I would hold someÂ goldÂ . . . and I would hold some equities,â€ he says.
â€œAnd I happen to think that one day a lot of corporateÂ bondsÂ will have a higher credit rating than the U.S. government [bonds],â€ he adds, which coincidentally comes on the same day as another Bloomberg interview with credit rating agency Fitch, who warns the U.S. Treasury of an impending downgrade, if Congress cannot outline plans sometime in the first half of 2013 to narrow a $1.3 trillion annual budget deficit.
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