In The News Today

Posted at 10:43 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

You need to maintain a sense of humor under all circumstances. You will have to agree with me that the following article is timely.

SEC Faults Its Handling Of Tips on Short Sales — Too Few Complaints Resolved, Report Says
Zachary A. Goldfarb
Washington Post Staff Writer
Thursday, March 19, 2009; Page D01

"Only 123 of 5,000 naked short-selling tips were forwarded for further investigation, and none led to enforcement, the report said".

The SEC’s enforcement division disagreed with most of the report’s findings.  "There is hardly unanimity in the investment community or financial media on either the prevalence, or the dangers of, ‘naked’ short selling," it wrote.  The division added, "The people closest to the trading, with the deepest u nderstanding of and access to the data, did not see and refer any of the large-scale, damaging ‘naked’ short sale abuse."

Obviously under former SEC Chairman Christopher Cox, illegal naked short selling (FTD’s) was part of generally accepted SEC procedures.  "none led to enforcement"

However, under new leadership the SEC sounds like they may want to send a message to the FTD er’s. Time will tell.

New SEC Chairman Mary Schapiro is working to revamp the agency’s system for collecting tips and pursuing investigations.


Jim Sinclair’s Commentary

Just in case you have not focused on it, the gross obligations of the US Government in February 09 passed the ENTIRE World GDP. That is fact, but hey, in today’s world it seems who cares, it is only paper. We can always make more and more paper, maybe.

Federal obligations exceed world GDP
Does $65.5 trillion terrify anyone yet?
Posted: February 13, 2009 11:35 pm Eastern
By Jerome R. Corsi
© 2009 WorldNetDaily

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the "2008 Financial Report of the United States Government" as released by the U.S. Department of Treasury.

The difference between the $455 billion "official" budget deficit numbers and the $5.1 trillion budget deficit cited by "2008 Financial Report of the United States Government" is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.



Jim Sinclair’s Commentary

Please consider the implication to markets and inflation when, not if Pakistan implodes into Taliban hands.

Troops patrol streets in southwest Pakistan
QUETTA, Pakistan (AFP) — Paramilitary troops patrolled the streets Sunday to deter any violence as the Pakistani city of Quetta came to a standstill for a …
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Pakistan militants torch Afghan supplies
Reuters – USA
PESHAWAR, Pakistan (Reuters) – Taliban militants set fire on Sunday to 10 container trucks carrying supplies to Western forces in Afghanistan in a pre-dawn …
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Baluch militants kill six mine workers in Pakistan
Reuters – USA
By Gul Yousafzai QUETTA, Pakistan (Reuters) – Separatist militants in Pakistan’sBaluchistan province have claimed responsibility for killing six coal-mine …
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