New Government Protection - Must Read
Hopefully the image showed up...
More seriously, this crisis is all about debt.
If you haven't come across these in your reading, they are worthwhile.
Debt Reckoning: US Receives A Margin Call
Welcome to the Future
Mish is still talking about deflation... I suppose the BSC collapse is a form of deflation...
Bespoken is mentioning BSC's behaviour in a previous crisis, one in which they wished their out come on others... Poetic justice?
With all the focus on BSC, little attention was paid to the other disasterous news. All of today's economic reports were bad and probably ought to have resulted in a market decline without the BSC news, so today really didn't price the bad news into the market.
This one interests me... Marketbeat talking about its usual kind of thing mentions the hit to brokers today. It interests me because it mentions Penson, which is the parent company to where I had my brokerage account.
These are the guys that took 7 weeks to transfer my money to a bank when I decided I wasn't qualified to assess my risk that my broker screws up and my assets get frozen, and/or not returned. I had the bank manager where I was transferring funds to contact them three times and then after 3 weeks when I contacted them they said they had no record of my request to transfer. As I am very unsettled about the market I filed a complaint with the securities commission after giving them warning that I would do so if my money was not immediately transferred as requested, and I gave them another 3 days before filing the complaint. It still took a few weeks after my complaint was filed for my money to be transferred.
I didn't like what I read about brokerage insurance at all as it appeared to be a self-regulated kind of thing. What is happening the market right now is of no surprise to me what-so-ever, although it is frequently shocking. I expect a brokerage to go under, but I also expect it to happen and people with investments to have serious trouble recovering their investments. So far only the shareholders have been hurt, not those with accounts.
So, I don't know if I was just overly paranoid and that was simply a really badly run brokerage to be so incompetent in handling client requests, but in these market conditions it made me very uncomfortable. I took it as a strong red flag as I would have continued with about 25% in the market had they not given me reason to distrust them. I simply increased the transfer amount to almost clear the account when it didn't happen.