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China Invokes A “Stop Loss” On OTC Derivatives

My Dear Friends,

China tells the Wall Street OTC derivative manufacturers and distributors to go straight to hell.

China has invoked a "Stop Loss" on these fraud ridden instruments.

If you create a specific performance contract that you know under even the slightest pressure cannot perform, you have committed fraud.

My English bull

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In The News Today

Jim Sinclair’s Commentary

Regional banks are now in deep trouble.

Commercial Mortgage Defaults Jump for U.S. Banks By Hui-yong Yu

Aug. 31 (Bloomberg) — The default rate on commercial mortgages held by U.S. banks more than doubled in the second quarter from a year earlier amid falling rents and occupancies for malls, office buildings

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Jim’s Mailbox

Dear Jim,

Apparently pulling trillions out of an already weak economy with double digit unemployment is child’s play.

Who are these talking heads kidding!

CIGA Marc 77

Fed Can Avoid Inflation Danger: NY Fed President Published: Monday, 31 Aug 2009 | 7:38 AM ET

Fears of inflation because of the Federal Reserve’s massive quantitative

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Will Gold Reach $5000?

Dear Friends,

Martin Armstrong’s latest contribution poses the question of whether or not gold will go to $5000.

He does say it will reach $3000.

Mr. Armstrong, although living a complex life probably as a victim, has NOT been wrong ONCE on trend since I first knew him in the 1970s.

Keep in mind

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In The News Today

Jim Sinclair’s Commentary

"Broken Bank Fridays" are going to be double digit days for a long time to come.

This is a good review.

FDIC Insured Institutions have $13.3 Trillion in Assets. 8,195 Banks and 116 Institutions Hold $10.2 Trillion of Those Assets. One out of Four Institutions Unprofitable. 1,000 Banks Will Fail

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In The News Today

Bank Closing Information – August 28, 2009

These links contain useful information for the customers and vendors of these closed banks.

- Affinity Bank, Ventura, CA – Mainstreet Bank, Forest Lake, MN – Bradford Bank, Baltimore, MD

http://www.fdic.gov/

Jim Sinclair’s Commentary

Over 900 more US banks to fall according to this accepted authority.

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Jim’s Mailbox

Hey Jim,

Bullion banks taking the other side of the trade? Sure looks like it. The money flow footprint is highly unusual for a B to C wave transition. Normally, the bullion banks reduce their short positions before the C wave advance.

CIGA Eric

Click charts to enlarge

Greetings Jim,

Friday’s gains

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The Capping Activity Of The Gold Banks

Dear Friends,

The capping activity of the gold banks has now been adopted by the professional trading public and I am told major trading clients of the gold banks themselves.

During the major gold market of the 70s I would often use brokers common to Middle East interests and the German banks when doing

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