Gov Corzine, Show Us The Money

[Jackie S]

Well, it seems another Friend of the Presidents, (and Democrat glamor boy) has made a big mess of things, which would not seem too bad except there is about one Billion Dollars that no one can seem to find from his Bankrupt Company MF Global.

Congress will probably get him before a committee, where it is rumored he will take the "5th".

His defense will probably be, "what's a billion, hell, we, (the Democrats), are used to loosing trillions".

[Iaintliein]

I'm guessing a fair bit of it, along with a fair bit of the slush fund set up by BP after the oil spill has miraculously found it's way into the coffers of the DNC, ACORN and Soros.

[Munchmasterman]

Originally Posted by Iaintliein

I'm guessing a fair bit of it, along with a fair bit of the slush fund set up by BP after the oil spill has miraculously found it's way into the coffers of the DNC, ACORN and Soros.

It's obvious you are guessing. Since there is no ACORN anymore.
Somehow your guess, combined with the lack of any links, tells me you don't have a fucking clue what you are talking about.

[i'va biggen]

Originally Posted by Jackie S

Well, it seems another Friend of the Presidents, (and Democrat glamor boy) has made a big mess of things, which would not seem too bad except there is about one Billion Dollars that no one can seem to find from his Bankrupt Company MF Global.

Congress will probably get him before a committee, where it is rumored he will take the "5th".

His defense will probably be, "what's a billion, hell, we, (the Democrats), are used to loosing trillions".

Yah all dems are money minded while all repubs troll in airport bathrooms.

[dilbert firestorm]

Originally Posted by Munchmasterman

It's obvious you are guessing. Since there is no ACORN anymore.
Somehow your guess, combined with the lack of any links, tells me you don't have a fucking clue what you are talking about.

acorn is still around

[IIFFOFRDB]

No more ACORN. yea right. http://dailycaller.com/2011/09/16/re...axpayer-money/

[CuteOldGuy]

Corzine is shocked, SHOCKED that the money disappeared. He can't imagine what possibly could have happened. Lying sack of shit.

http://latimesblogs.latimes.com/mone...ing-funds.html

[Fast Gunn]

I have been reading the convoluted details about "Fuzzy" as he was known at Goldman-Sachs where he was CEO and it makes for high drama worthy of a Shakespeare tragedy.

However, his powerful arch-rival at Goldman was none other than Henry Paulson who engineered a coup while Corzine went on vacation and booted him out when Jon returned and took over as CEO. These guys are polite on the outside, but really vicious and cut-throat on the inside.

After that, Jon Corzine sat at home for 6 weeks plotting his return and that's when he decided to run for the Senate. A really ballzy move!

He won the election, but only after spending $63 million of his own money.

These rich people are different from you and I and they play hard ball in the major leagues for big money. Very big money.

. . . Frankly, I still do not know what to make of him, but there is no doubt that he fucked up big-time!

[dilbert firestorm]

Originally Posted by Fast Gunn

I have been reading the convoluted details about "Fuzzy" as he was known at Goldman-Sachs where he was CEO and it makes for high drama worthy of a Shakespeare tragedy.

However, his powerful arch-rival at Goldman was none other than Henry Paulson who engineered a coup while Corzine went on vacation and booted him out when Jon returned and took over as CEO. These guys are polite on the outside, but really vicious and cut-throat on the inside.

After that, Jon Corzine sat at home for 6 weeks plotting his return and that's when he decided to run for the Senate. A really ballzy move!

He won the election, but only after spending $63 million of his own money.

These rich people are different from you and I and they play hard ball in the major leagues for big money. Very big money.

. . . Frankly, I still do not know what to make of him, but there is no doubt that he fucked up big-time!

fortunately, he's no longer senator. his money didn't help stave off election defeat.

[Fast Gunn]

In all fairness, MF Global was already in dire straits when Jon Corzine arrived and the firm desperately needed new cash flow.

Where Jon went wrong, terribly wrong, was in buying huge amounts of government debt from Italy, Spain, Belgium, Portugal and Ireland. Who in their right mind would invest there?

He then took out loans to buy these bonds.

Incurring debt to buy more debt does not make sense and then to invest in Europe now is insane, but he thought his gamble would pay off.

The interest on the loans was less than the yield on the bonds so on paper he was making substantial sums of money.

$47 million in one quarter and $38 million in an another.

Unfortunately, the whole scheme was a precarious house of cards built on shifting sand and only waiting for a gust of wind.

[waverunner234]

Originally Posted by Fast Gunn

In all fairness, MF Global was already in dire straits when Jon Corzine arrived and the firm desperately needed new cash flow.

Where Jon went wrong, terribly wrong, was in buying huge amounts of government debt from Italy, Spain, Belgium, Portugal and Ireland. Who in their right mind would invest there?

He then took out loans to buy these bonds.

Incurring debt to buy more debt does not make sense and then to invest in Europe now is insane, but he thought his gamble would pay off.

The interest on the loans was less than the yield on the bonds so on paper he was making substantial sums of money.

$47 million in one quarter and $38 million in an another.

Unfortunately, the whole scheme was a precarious house of cards built on shifting sand and only waiting for a gust of wind.

Hey, someone had to buy them. That's normal investors risk. All those bond auctions sold completely so obviously there was enough appetite for them.
And there still is, they have auctions every few days.

I don't know enough of this case to know where he went wrong but it is not just the buying of those bonds. There is insurance for default.
If I was into the bond market, I would buy them for sure. As long as the interest payments are higher than the borrowing interest + the insurance for defaulting (Credit Default Swaps or CDS) it is worth doing it.
The problems in those bonds are not the investors, the problem is the countries that cannot survive with interest payments above 7%.

[taggert]

While its true, Corzine made poor decisions, the fact still remains that he's missing a whole lot of money that wasn't his to lose in the first place. You don't "misplace" that kind of money and not have a clue. He's just another elite-ist /politician who considers himself above the laws the rest of us live by.

[Whirlaway]

Same Democrat (Corzine) who crafted Obama's failed $1T stimulus, bankrupted NJ taxpayers, and who Biden considered to be a financial genius

[taggert]

Originally Posted by Whirlaway

Same Democrat (Corzine) who crafted Obama's failed $1T stimulus, bankrupted NJ taxpayers, and who Biden considered to be a financial genius

Well said!

[Fast Gunn]

Originally Posted by waverunner234

Hey, someone had to buy them. That's normal investors risk. All those bond auctions sold completely so obviously there was enough appetite for them.
And there still is, they have auctions every few days.

But why would a sane person purchase them?

Just because things are for sale does not mean that you should buy them.

They also used to have Gremlins and Pintos for sale, but would you buy them?

A wise man realizes that there are far more bad buys available out there than good ones.

Actually, the board of directors expressed their concern to Corzine, but he was too mule-headed to listen to their advice.

He was too much of a risk taker and in fact would not even wear his seat belt and suffered a near fatal car collision in 2006.

He may have come in to rescue MF Global, but personally, I would not trust someone so reckless to handle my money, especially in such a volatile market and then to invest in Europe when it's in such turmoil?

. . . I would say that this disregard for caution was probably one of the root causes of the dislike that Henry Paulson had for him.