HAHA too funny!
Refco, the world’s largest independant derivatives broker, has been turned upside down in a matter of weeks. 500 million missing here, 500 there, oh wait, I got the 500 million back! Ok, so where was the 500 million? This should be fun. Unfortunately any article I read dealing with Refcos upcoming plasmic vaporization from the planet earth, so I will have to wait until someone actually tackles the story. I bet Mr. Sinclair is all over it. I know you can get the story on JSmineset.com, but let me warn you I can barely even follow these derivative transactions myself. I can only tell you that they are there, and the D-bombs are the reason for the collapse. You wouldn’t garner that much basic information from reading anything in the newspapers. They call them futures options, which they are, but they mislead. If they are just simple futures options, how can you create 325 trillion dollars of them? I hope we never find out, yet I know it is inevitable.
What has happened is equal to a bank run, Refco has banned any clients from taking over 30% of what is in their accounts. All trading in it’s stock has been halted, which has likewise fallen from over 20 to less than 7 in the last couple days. Is this the dreaded daisy chain’s first domino?
Interestingly enough, the ad in the google banner on the top right hand of this blog page should read “Invest through Refco, a leader in futures markets.” R.I.P.refco
