Ann Barnhardt Shuts Down Hedge Firm With ‘Going Galt’ Letter | TheBlaze.com.
Ann Barnhardt, has shut down her brokerage which specialized in the cattle and grain futures and options. This move seems to have been propelled by the handling of the MF Global firm run by Jon Corzine, which shuttered and ripped off the cash of its customers. The accounts were frozen and the owners were not allowed to liquidate while the rest of the markets continued trading. Barnhardt says that this differed from the usual response of the market which had been to allow customers’ assets to remain liquid when a firm broke down, while its function could be replaced by another firm. The reason for the difference appears to be the connectedness of Jon Corzine to the Obama administration. It has cost his customers the money they invested, plus it could eventually put assets which they had recently removed from MF Global at risk too.
Over a thousand people are laid off at MF Global, and their clients money has disappeared.
Barnhardt’s evaluation is that the basis for the system of leveraged futures trading has been ripped away, and she can no longer in good conscience advise anyone to invest their money in what is now an entirely unsupported system. She recommends that other hedge fund investors get out of the newly unprotected market which is also threatened by the financial instability of Europe.
You can read the entire farewell letter written by Ann Barnhardt at her politically incorrect blog, which she says will continue to remain in operation. There are no kind words for the Obama administration, which she blames for the bulk of the MF Global disaster. Also available for your viewing interest is the AnnBarnhardt youtube channel.
