And it's gone...................from Rico

The traditional definition of rehypothecate:

To pledge collateral that has already been pledged as collateral.

 

Moving beyond MF Global which "rehypothecated" investor funds and made them "vaporize" let's look at the over 100 paper "owners" of each existing physical ounce of Gold on the COMEX today.

- Gold has been rehypothecated.

 

Then let's look at the fractional reserve banking system and the FED. How many "owner's" are there of FRN's (Federal Reserve Notes aka Dollars)....hundreds, thousands, millions? And that is before considering derivatives. 

- Money has been rehypothecated.

 

The traditional expression "he who sells what isn't his'n, must pay it back or go to prison" was Corzin'ed long ago.

- The current expression ends with "...unless he's a Bank or a Government."

 

Coming full circle back to rehypothecation, it is nothing more than a synthetic naked short.

- The "system" has been playing everyone else for suckers. Mugs. Dopes.

 

The next stage of the game for everybody (as Cyprus, and then Greece discovered) is to be Corzin'ed. BOFR (bend over for rehypothecation).

- The original Southpark clip on YouTube "and it's gone" germane.