The article "MF Global and the great re-hypothecation scandal":
- provides further evidence of the great extent to which the financial and banking systems operate extraordinarily free of regulation and prudence;
- demonstrates how "segregated" client accounts needn't be segregated;
- postulates that re-hypothecation "may be the world's largest ever credit bubble";
- hypothesises that the current liquidity crisis may be due to the high level of re-hypothecation;
- explains how re-hypothecation could amplify the European debt crisis fourfold; and
- argues that very few MF Global clients will likely get their money back.
Also see ""Why the UK trail of the MF Global collapse may have "apocalyptic" consequences for the Eurozone, Canadian banks, Jefferies and everyone else" for further explanation, opinion and commentary.