That is about all I know to do.

At a conference I attended (Casey Research) there was one speaker that addressed the MF Global type situation (the fact that something like it would likely happen again) and they addressed it again in a Q&A session with all the speakers. The best they could come up with was to diversify your paper assets over a number of brokers and don't keep large cash balances in any of them. I thought that was a piss poor solution but basically the law is in favor of the banks (surprise, surprise) in the event of a brokerage failure and actually has been that way for a number of years. It is just that MF Global brought the law to the public's attention.

Basically, you don't own what is in your account. The brokerage owns it and you have a claim against the brokerage on the assets you think you own. And you are behind secured creditors such as the banks that loan margin money to not only you and other customers but also to the brokerage (using your, or what you think is your collateral) so if the brokerage goes belly up you get the crumbs that are left over after the banks are made whole. It is exactly the same deal as with open storage grain at an elevator. When it goes over the scales it is no longer your grain. It is the elevators grain and you only have an unsecured claim against it. The banks have first claim.

If you are starting to think the game is rigged against the little guy, you win the prize.

Best I can figure is store grain at home in your own bins, own physical assets that you can put your hands on and that will maintain value as the paper currency looses its value. Try to keep paper assets in an organization that is run responsibly.

I use Vanguard and Ameritrade. I really like Vanguard because it is run more like a credit union where the company is run for the benefit of the customer instead of investors. Is it safer than anything else? I really don't know. I hope so. It has always been a very conservative organization as far as I could tell all the years I have used it. I would probably transfer all my paper assets there except then ALL my (off farm investment) eggs would be in one basket so I keep a corporate and trust account with Ameritrade.

I would think protecting oneself (based on the assumption that we are not going back to bartering and the dark ages - if that happens then guns and ammo might be a good idea) what NOT to own might be as important as what TO own. I personally own zero government bonds. Never have in any significant amount. Buying government bonds to me is simply encouraging a government to spend money it doesn't have. Governments should not need to borrow money except under the most dire circumstances in my opinion. Dire circumstances would include when enemy tanks are crossing your border. Other than that, governments, in my opinion, should be on a strict balanced budget based on what the populace says they can have in taxes. Here is what you get, dole it out best you can. But that is just me. Buying government bonds to me is like telling your teenager not to spend so much money then handing them a credit card. Again, that is just me and most people consider government bonds as "safe" investments. Has not worked out so well for holders of some European country bonds.

I don't really have good answers. I'm in it knee deep like everybody else.

John