I knew that Jon Corzine was a corrupt politician, but it doesn't seem that I knew the half of it. He lost the 2009 New Jersey Governor's race to Chris Christie in a rare defeat in the state. He was deeply unpopular and particularly incompetent.
However, his truly incompetent side seems to "shine" in the private sector, where he caused the collapse of MF Global. The investment bank was so poorly managed while Corzine was in charged that it is about to declare bankruptcy.
MF Global made a risky bet in a tumultuous market. Recently, the firm revealed that it had $6.3 billion of sovereign debt in troubled countries like Italy and Spain. The position was nearly five times the firm’s equity of more than a billion dollars. As the sovereign debt crisis reached a peak in October, two rating agencies cut the grades on the company’s debt, saying they questioned the firm’s risk controls given the size of the position.
So, with all of the talk about the greedy banks and the 1%, it is a major Democratic politician that engineers the collapse of billions in capital. If this was a major Republican official, don't you think that the media would be all over it?
Don't you think that Barney Frank would be holding hearing after hearing against "corporate greed" and calling for "social and economic justice." Couldn't you see a front page editorial in the New York Times, calling the situation an outgrowth of the "culture of greed" and blaming it on the Bush Administration?
No. Rather, we have a Democrat ruining a major firm with another Democrat in the White House. Instead of a major scandal, it's just another day at the office.
Sure, Corzine's company decided to invest in some of the worst equities on the planet. It's not like the social democratic model is collapsing, at all. Maybe they invested in the European countries because that's the model the Democrats are trying to bring to this country.
The MF Global collapse is a small example of socialism in action.