David McElroy

Another firm ‘going Galt’ as hedge broker blasts financial corruption

By David McElroy · November 19, 2011

Four months ago, I watched in fascination as a coal mine operator made a snap decision in a public meeting not to open a mine. It reminded me of a scene out of “Atlas Shrugged.” This week, a hedge broker shut her company down — and left a letter for her clients and friends making it clear that Atlas is shrugging.

Ann Barnhardt has operated an independent futures brokerage just south of Denver for the past six years. On Thursday, though, she posted a letter for “Clients, Industry Colleagues and Friends of Barnhardt Capital Management” announcing that her company had shut down, effective immediately. She was very clear about her reasons:

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

MF Global is the company run by politically connected former U.S. Sen. Jon Corzine. It filed for bankruptcy last month amid various kinds of serious problems, the most serious of which is $600 million in missing client money. Not only is that money missing — and probably gone forever — but the people with accounts at the firm had their accounts frozen by regulators, who wouldn’t allow them to withdraw their own money. This insider theft of customer money — and regulatory co-operation in keeping customers from getting to the rest of their cash — was more than Barnhardt could take. She had to walk away from a corrupt system.

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FRIDAY FUNNIES

By David McElroy · November 18, 2011

Some turkeys are working on their survival plans right about now, because millions of people are having them over for dinner next Thursday.

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Effort to boot unethical congressman laudable, but will it really help?

By David McElroy · November 18, 2011

Insider trading is considered such a serious offense by the federal government that it routinely prosecutes people and sends them to jail for it — unless you’re a member of Congress, in which case the rules don’t seem to apply.

Spencer Bachus is a Republican congressman from the district in Alabama where I live. I’ve met him and I have friends who know him, but I can’t say I know the man. He’s been in the news lately, but for all the wrong reasons. When CBS News’ magazine “60 Minutes” ran a story last Sunday about members of Congress who were involved in insider trading, Bachus was prominently mentioned. It appears that Bachus was taking secret information he was getting as a member of the House Committee on Financial Services and using that to trade banking stocks that he knew were about to go down in value.

Bachus says that nothing he did was illegal, but he also says he quit trading stocks late last year. I wonder why he quit doing what he was doing if it was perfectly legal and ethical.

Here in Alabama, many conservatives and Republicans are outraged about Bachus’ behavior and are calling on him to resign. About 50 or 6o conservatives gathered at Bachus’ Birmingham office Thursday to protest.

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Here’s the latest of my ridiculous parody shorts. It crossed my mind Tuesday to wonder what a slick and fast-talking car dealer might do right now to try to turn the high price of gasoline to his advantage. So I conceived of a fat and lovable character who tried to sell cars that don’t use any fuel — and then I started wondering if it would be funnier if all the characters were felines. Designing the King Cashpaw character took about four hours, but the rest took only another four hours, so this was a relatively quick piece that virtually wrote itself. I know it’s almost impossible for these parody videos to find a larger audience, but at least they amuse me — and there are 19 of them on my YouTube page now. The first few were very limited, but they’re getting more complex.

The Republican Party is dead. It still exists in name, of course, but it’s nothing but a shell. All that’s left are idiots and stooges and con men of the MAGA party. When Donald Trump is gone — which won’t be long — those populist idiots and pragmatic fools will have no one to follow. Democrats will thrive. They will take more power than ever and they will push the federal government further to the radical far left than ever. When that happens, don’t just blame Trump if you’re a conservative. Blame every person who has claimed to be a conservative and has given up on principles, character and everything else that Republicans once claimed to stand for. As someone who worked as a GOP political consultant for many years, this is disgusting and disturbing to me. Those who have enabled Trump to have almost unchecked power are going to be shocked when they see what they will unleash in the long run. It’s been plain all along what this narcissistic con man is. It’s your fault that you chose to pretend not to see what he really is.

We are ruled by the dumbest and most incompetent people among us — and we have a system which allows stupid and irresponsible people to force the costs of their idiocy onto smarter and wiser people. Can we get away with that? Yes, for quite some time. But we eventually reach a point at which the dumbest of the dumb — who are habitual liars and mentally ill fools — lead us to the disasters and destruction that some of us have seen coming for years. We are approaching that point. And yet most of the idiots around us still wave their rhetorical banners of support for the evil people who are leading us to ruin — and all of them point their fingers at someone else, never noticing that their own enthusiastic support of evil is to blame. When things finally fall apart, blame yourself for your blindness to the evil, not whoever happens to be in power when it happens.

I’ve been making some changes to the site lately and there are more changes coming in the days ahead, so don’t be surprised if you some small differences. This is not a wholesale redesign, but rather the addition of some features. Since they’re smarter than I am, I’ve put Oliver and Alex in charge of the technical work, which you can see in this action photo from the control room of our media complex. I recently added a series of landing pages for readers who randomly discover the site from an Internet search. I’ve also changed the YouTube link at the top of the page to go to the new YouTube channel for video essays that reflect things I’ve already published here. (Here’s a little bit about both of the YouTube channels I’m working on.) In addition, I’m trying to move away from using Instagram, so I’m experimenting with photo plug-ins that will eventually allow me to host the pictures — cats, dogs, sunsets, whatever — that I often take. So don’t be surprised to see more changes. Thanks for your patience. Let’s hope Alex and Oliver know what they’re doing.

I have no use for the theocratic and repressive government of Iran. The people who run the country are cruel at best and evil at worst. The Iranian people deserve freedom. But I have no personal quarrel with anybody in Iran. While I’m not thrilled about a future Iranian government having nuclear weapons, I’m just as concerned about nukes in the hands of politicians in Israel, Pakistan, India, China and Russia. I’m not even thrilled with the U.S., Britain and France having them, either, because I don’t trust any politicians to be responsible with such terrible weapons. All I can say with certainty is that American taxpayers have no business attacking Iran, especially since we’re being forced to pay for this attack in order to benefit the politicians of Israel — and nobody else. If Middle Eastern countries want to fight among themselves, that’s none of my business. It’s not the business of the U.S. government, either. I have no quarrel with anybody in Iran — and having the government which claims to represent me launch an unprovoked attack against a sovereign country will only make all Americans less safe in the near future. This attack is poorly conceived and morally unjustified. Remember that when the Iranians launch attacks that we will then condemn as “terrorism.” What the U.S. is doing right now looks like terrorism to me. And let’s not forget that the attack is the latest in a long line of unconstitutional wars by various U.S. presidents — who have no legal power to declare war on their own, according to the U.S. Constitution.

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