Some well-known financial names have started to come up in discussions about those who unfortunately found themselves in the middle of the MF Global mess - one of which is well-known trends forecaster Gerald Celente, who discusses his experience in an interview with King World News this week. Celente makes a good point in his interview - where is former MF Global CEO John Corzine?
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It's amazing that there continues to be proof that the lessons of 2008 haven't been learned one bit - how many ways could this story go wrong?
"LONDON — The London Stock Exchange is becoming the lender of last resort for many banks in Italy as concerns over the country’s debt levels squeeze liquidity out of the Italian financial market. The money, which comes from collateral that traders must put up to complete financial transactions, is deposited with the banks to cover shortfalls in liquidity. CC&G earns a profit by charging banks interest on the money that they borrow."
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Trust in the market continues to be an issue (among others) for the retail investor, who continues to take money out of equity mutual funds. Bonds, however, continue to enjoy inflows. Overall money in mutual funds has decreased since December, 2010 (11,039.8B in Sept. 2011 vs 11,820.7B in Dec. 2010), although stock funds have seen the largest decline in assets.
Data From ICI
10/12/2011 10/19/2011 10/26/2011 11/2/2011 11/9/2011
Total Equity (in millions) -7,397 -3,288 -3,887 -3,280 -4,643
Total Bond (in millions) 3,954 5,649 4,908 3,067 4,214
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New Mutual Fund/ETF Filings:
Pimco EQS Dividend Fund & Pimco Dividend and Income Builder. No manager named in filing and no symbol named. Former is a dividend income fund that has the capability to short, while the later is a balanced fixed income/equity fund that is also listed as having the ability to short. Both funds will most likely share one or more managers. Filing
IShares International Preferred Stock Index Fund (ETF) Filing
