Nomi Prins and Max Keiser do what the financial media will not do:
1. Describe the mechanics how JP Morgan looted MF Global prior to its bankruptcy
2. Point out that this is not the first case of this happening
3. Explain (or at least begin to explain) the consequences of what will happen if this becomes the “new normal.”
Let me lay it out for you:
If this is allowed to stand – and it sure looks like it will – a JP Morgan-sized lender can force the bankruptcy of a client by pulling its credit line and then, using its inside knowledge of the situation and status as clearinghouse and lender, loot assets it has no legal claim to from the company’s coffers before the curtain comes down.
There are going to be a lot of bankruptcies of businesses and collapses of financial institutions (and countries) in the coming months and years.
It appear that JP Morgan and friends have figured out a method to extract the cash before the Crash.
Nice work if you can get it – and stay out of jail. And it looks like the “regulators” and the “media” prefer to act like clowns to enforcing the law. Amazing.
If you want to completely devastate the financial system – I mean really drive a stake through its heart and create total chaos – this is a great way to do it.