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Refco Collapses Under $430m Of Hidden Debt

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Refco a broker and future trader is on the brink of collapse, they have concealed over $430m of debt and the exec has been charged with fraud. They're used by many hedge funds and there will be some serious knock on effects, shares in the Chicago Mercantile Exchange alone have dropped over 10% because Refco accounts for over 12% of total trades (a lot for a single company). There have also been curious movements on the Dollar since they were heavily involved in forex markets and many investors are unwinding their positions. You've no doubt seen Refco FX adverts on money sites linked from the blog.

This has a serious potential for destabilization of the system, just the sort of financial crisis the Austrailian central bank was warning about a few days ago. Hedge funds are to the financial markets what 2 bed luxury apartments on 150% gearing are to the property market.

Derivatives are like the top card on the house of cards, they fall first.

Yup, they're stuffed - Refco shuts down main business

Edited by BuyingBear

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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