said john kors i knew customer money was used and now he's saying ok maybe i did but i was told that this was completely legal to transfer this money by my back office i guess the big question for you karl denninger how could this be legal. i don't know how it's legal. i'm not a securities attorney i'm just a trader writer and a journalist and what i do from what i understand it customer funds are just never supposed to be co-mingled like this so how do we get from i don't know where the

has now testifies saying john kors i knew of the firm used customer money and today now we see john corps i'm back on the hill he has a new defense he said the back office staff explicitly informed him that funds transferred before the company filed for bankruptcy were legal here's excuse the back office in chicago explicitly confirmed to me that the funds were properly transferred and i understood that j.p. morgan chase was satisfied since they executed billions of trades billions of dollars with m.f. global. so more and more is coming out and how much has changed from a week ago when john kors i was basically pleading the fifth without pleading the fifth listen to this i simply do not know where the money is or why the accounts it's not been reconciled today. so so much more has come out but the big question of course actually several of them will customers get their money back how did this happen and what does this say about how safe money is in accounts that are supposed to be sacrosanct and accounts in trades that are overseen by regulators as these were well karl denninger of the ma

back to some more viewer predictions and this one comes from leah complera and she predicts that john kors on is acquitted on all counts of financial peeta feely well financial paedophilia is a new statute that was first revealed here yeah we talked about it a couple of years ago actually and we had a scholar a legal scholar talking about the introduction of financial pornography and paedophilia is a classification of financial crime as a deterrent and he should be brought up on financial paedophilia and he will get off because jamie done. and we'll just make a call to whoever it is make a call to and he'll get off scot free but let's move on to the other big prediction a lot of people a lot of banks a lot of bloggers are making this one the chinese economic miracle falters too many u.s. t. bills tying it to post-industrial western economies is part of the reason but in fact they say that the most serious economic damage will come to australia who's basically gone long all in on this bet china sustaining their economy and their housing market bubble yeah this is interesting because a coupl

i literally picked up the phone and called john kors i can see john what do you think we should do. the reason why we told you. to speak your eyes we knew he knew about the economy about world markets about how we had to respond like almost anyone we knew. so while it's great and all that the regulators passed this rule how can we really expect regulators to regulate the very people that politicians reach out to for advice and it is a huge problem i mean it's a problem in every sector but particularly with finances because finances become so enormously powerful and they so control the debate so it's not just that they have a huge amount of money to give to politicians which of course they do but they also control the expertise you know the joke is that if you want to talk to someone from goldman sachs call the treasury department i mean it's just staffed with people who are from wall street so it's an area where they really do control both ends of the debate you don't have much choice between the republicans and democrats you know you can get the democrats and you have as many peopl

morgan and john kors sign. we're trading with each other and eventually they're all and on some zingo related virtual finance game in cyberspace trading zingo dollars and taking their or their exhaust of their of their fraud public just dead for a few billion dollars trading virtual nothings for virtual nothing currency and one last quick headline census shows one in two people are poor or low income in america now fully half of americans qualify as poor or low income now all these farmers being wiped out via the c.m.e. group m m f global member one thing that did exist in the first great depression where many small farms which you could often get food they would help you out and feed you their cattle but now they're being wiped out and just going to be a one giant santa archer cargill sort of big giant monopolist farm that they're not going to feed you they're going to let you die you know it's remarkable i just saw statistic is that half of america is you know at or below the poverty line but i just did a sur

global why hasn't john kors name got arrested or at least been pepper sprayed the least we could do is have a little pepper spray and maybe some plastic and caught sight i don't understand this the orderly functioning of the futures markets to me and. customer phones be sacrosanct and never invaded and dead appears at this point to it not happened you know it it's one thing to say i don't know with a twenty dollar bill when when it's starts a six hundred million in that always so it becomes a billion plus you've got to wonder these guys not only can't find the money they can't seem to figure out exactly how much is missing that's a problem but it seems like a total breakdown of all of the basic laws of the street this basic law you can't take money out of customers accounts it i mean it's pretty basic i mean if this doesn't work why would anyone keep their money ninety. brokerage firms that's the question max i think that everyone has to be asking now and it is that risk that in my opinion is the largest to do to financial industry and to the orderly function of the markets that we've

john kors line of course said something similar at a hearing last week he was there today to again testifying meanwhile farmers and customers who can't get their money are dumbfounded retail investors say they've lost their trust in the sanctity of customer accounts we'll talk to one of them gerald celente to find out what is going on with his money and the strait of hormuz the most important oil transit channel in the world well after reports that iran will hold drills to close it boil prices this morning spiked modestly above one hundred dollars a barrel reportedly on summers that it was closed more importantly though does announcing these military exercises drive home the point that iran has the capacity to make life miserable for oil consumers around the world and the fed announced as it will keep rates near zero makes no big policy changes if the final effluents the meeting of the year it remains to be seen though if wishing ben bernanke a happy birthday is the best or most exciting thing that will come out of the minutes when when they're released three weeks from now if you turn fifty