The American people did not just jump to conclusions about the financial chicanery at MF Global.
An official at MF Global, who spoke on the condition of anonymity, admitted to federal "regulators" in a preliminary investigation that MF Global used clients' money as the firm's financial troubles escalated.
The MF Global official was obviously in a position to know and is probably perspiring heavily as he may very well be trying to work out a deal for immunity or at least reduced criminal charges.
This could just be the tip of the iceberg unless the rumor that Barack Obama had planned to reward Jon Corzine with the position of Treasury Secretary could backfire and hurt Obama's chances of reelection. (The Obama administration could, of course, just deny it.)
Hopefully, the MF Global disaster will lead to the demands of transparency in both the financial sector and the government. America's shrinking middle class cannot afford to lose any more money. The lost investments at MF Global will have a trickle-down effect in the worst way. Jobs will be lost, retirement money will be diminished and disposal income spending will go down. That will affect non-investors as well.
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