What Explains Corzine? Really?

Who would have thought: a former top dog of Goldman Sachs betting the ranch on Spanish and Italian sovereign debt. Really?

This is one for the behavioral finance boys. Hubris is the only real explanation. You would have to believe that you are the smartest man in the world and that there is virtually no possibility that you could be wrong. Then, away you go! Load up on junky sovereign debt and show the world!

Is this were a movie script, no one would buy it. It's too ridiculous.

But, happen it did. Not only that, Mr. Corzine appeared before Congressional committees and tritely explained that he knew nothing at all about how his company, MF Global, was meeting the daily margin calls (all repo transactions are marked to market daily). But, of course, Corzine did not know anything about that. He bought 6.5 billion in bonds and didn't give a thought to what the necessary cash position was that would be necessary to sustain that position as it collapsed in the market place. Really?

I suppose the reason that Corzine wasn't concerned about how his firm was going to meet the cash marks on their huge bond bet was that it was 100% certain to go his way. No need for cash!

Did they have to dip into customer accounts to meet margin calls? Apparently, this was not Corzine's concern. He was not involved in how the firm met the growing cash margin calls that were escalating daily at MF Global. Really?

I suppose Corzine was merely a face man. Someone else must have been running MFGlobal all this time. I wonder when that person will appear and own up to what happened to the customers $ 1.2 billion in missing funds. Really?