tag:blogger.com,1999:blog-7982981413278241287.post1375499608405550682..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: MF Global On SteroidsDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-7982981413278241287.post-38138883521937028682012-09-14T13:03:34.132-06:002012-09-14T13:03:34.132-06:00@JMR77 - I've already put a fair bit of my IRA...@JMR77 - I've already put a fair bit of my IRA into gold held at the Perth Mint via Sterling Trust. I assume this is similar to Everbank/SwissAmerican. Hopefully that's good for something. A PhD finance prof. friend of mine says that retirement accounts are insured up to $500K. So,<br />the general bankruptcy risk I was talking about above should be eliminated.<br /><br />And he also sent my questions/comments to a promiment credit expert, who said that if we get to a scenario in which Fidelity/Scottrade are going bankrupt, legalese isn't going to matter, the law of the jungle will. So, yeah, physical gold buried in the ground * at that point *. But we are a long way from there, it would seem. Though, perhaps we are moving closer at an exponential rate, which might deceive my linear oriented senses. :)<br /><br />Finally, to clarify. The risks regarding MF Global/Sentinel are related to margin accounts, which allow your assets to be used/lent out. This, supposedly, can not legally happen with IRA/401K accounts, and if it did could, you're insured for $500K.schmdoughttps://www.blogger.com/profile/09273892035574874171noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-25665650685245053962012-09-13T18:29:51.391-06:002012-09-13T18:29:51.391-06:00Thank you so much for finding out this information...Thank you so much for finding out this information.<br />$100 to print up share from Fidelity? I'm glad i sold what little I had and cashed out (not retirement account and it was only a few grand, but it is MY few grand, not Fidelity's money to fool with)<br /><br />Ai wish I could tell you what to do with the retirement money, cash it out and take the tax hit (half a loaf is better than none) roll it over to Everbank or SwissAmerican and get a gold backed IRA (unless Uncle Scam freezes all IRAs) roll it all into one bank IRA and hope for the best,etc.<br /><br />I really donKt know what is the best move for you, but fortunately (if you can call it fortunate) this financial train wreck is playing out in slow motion and you have some time to set up a game plan. Weigh all your options and best of luck to you.<br />(Footnote-I'm not affiliated with Everbank or SwissAmerica, these were just two who offer gold backed IRA's, their names just popped into my head. Search carefully before getting a gold IRA, read everything, study everything, due dilligence and all that.)<br />JMR777https://www.blogger.com/profile/03538238702295526065noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-86990833630755172972012-09-13T12:07:37.674-06:002012-09-13T12:07:37.674-06:00This and Jim Sinclairs comments on it shocked me ...This and Jim Sinclairs comments on it shocked me so much, I drove down to Scottrade this morning.<br /><br />Here's what they had to say:<br /><br />1. Most at risk for me is my Roth IRA at Scottrade and my 401k at Fidelty, so that's what I looked into. Scottrade says, my account is a "cash" account, not a margin account, and thus it is illegal for these shares to be lent out/sold short. Fidelity (on the phone) said the same thing. <br /><br />2. To get stock certificates printed they charge $500 per stock: 10 or 10,000 shares. Fidelity charges $100, if they have them. They might not, but other entities hold them on their behalf and they have their own fee structure's. One such entity is Computershare. I called up Computershare, and they didn't have me in the system, thus there was no way they were issuing me certificates. So I called Fidelity back, and got a representative directly associated with my 401k account. The rep. said it is rather difficult to have the certificates printed out under a 401k program, as the shares are deemed under the umbrella of the program - in my name technically, but functionally under Fidelity 401k Mgmt. And that if certificates are issues they go through the same process as a disbursement with all the restrictions, taxes and penalties that that entails. Not good.<br /><br />3. Also, the rep. at Scottrade said they don't do any proprietary trading there, so it wasn't the same risk as MF Global. However, I'm not sure that matters if they are still lending customer shares to trading entities. But, since my 401K and my IRA are cash accounts they are supposedly (again) not being lent or used as collateral. Actually, the collateral part I didn't ask about, so I guess that's an important future question to be asked. "Do you use 401K and IRA cash accounts to back any transactions?"<br /><br />4. So it seems the main risk is that Scottrade/Fidelity go bankrupt and because the shares that are held in my account are not in my name, but rather in the name of Scottrade/Fidelity, they can be used to cover their losses to other entities. Is this a credible risk? I dunno. Jim Sinclair asks us to look into the capital structure of our financial entity.<br /><br />"Do you know what your broker’s capital ratio is? Find out as that number is the order of magnitude at which your broker is gambling on with primarily your money. I dare you to ask."<br /><br /> I have no idea what Fidelity or Scottrade look like capital wise. Any ideas on how to evaluate them?<br /><br />Thanks Dave,<br />DougAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-89960788993135900312012-09-13T10:54:16.240-06:002012-09-13T10:54:16.240-06:00Breaking news: The fed to spend 40bn a month purc...Breaking news: The fed to spend 40bn a month purchasing MBS in order to lower borrowing rates. What's the definition if insanity again?<br /><br />http://news.yahoo.com/fed-spend-40b-month-bond-purchases-163255641.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-66893494703006891992012-09-12T21:38:39.589-06:002012-09-12T21:38:39.589-06:00Agree with JMR777. In a year or two (or months? we...Agree with JMR777. In a year or two (or months? weeks? Tomorrow?) they'll be tranching out "high quality, no risk, preferred" cocktails of Groupon, FB, Amazon, etal. Great post. Keep it up. Appreciated.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-61113820689131634162012-09-12T19:30:24.327-06:002012-09-12T19:30:24.327-06:00This "collateral transformation' thing so...This "collateral transformation' thing sounds a little like CDO's with a new name.<br /><br />Who knows what is/will be in this new investment package, good bonds, supposedly good bonds, muni bonds from Illinois and California, etc.<br /><br />If it sounds too good to be true it probably is and a fool and his money is soon parted.<br /><br />I think I will stick to physical PM's for the short, mid and long term.JMR777https://www.blogger.com/profile/03538238702295526065noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-4287383115191809902012-09-12T17:07:36.210-06:002012-09-12T17:07:36.210-06:00The following is a rhetorical question:
In a worl...The following is a rhetorical question:<br /><br />In a world where every kind of financial instrument has almost incalculable counterparty risk what is the value of physical gold?Edwardohttps://www.blogger.com/profile/03613197383283896190noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-49780403087157960292012-09-12T15:48:25.197-06:002012-09-12T15:48:25.197-06:00Unlike Navin (Steve Martin) in the movie "The...Unlike Navin (Steve Martin) in the movie "The Jerk", you really can tell the difference between shit and shinola, can't you? Good posting, Dave. Keep telling it like it is, brother.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-89634748365696356972012-09-12T14:31:01.630-06:002012-09-12T14:31:01.630-06:00I Love you man......
1Kg Lunar DragonI Love you man...... <br />1Kg Lunar DragonAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-87748849251434780622012-09-12T12:04:16.159-06:002012-09-12T12:04:16.159-06:00Own gold...@45 minutes...sorry MB hosting at cfr.
...Own gold...@45 minutes...sorry MB hosting at cfr.<br /><br /><br />A Conversation with Ray Dalio (Video)<br /><br />http://youtu.be/SFaRazMpxcMAnonymousnoreply@blogger.com