SINCLAIR'S 9 POINTS EXPLAIN IT SIMPLY

Nine Points Of Logic And Reason Posted: Feb 09 2009 By: Jim Sinclair Post Edited: February 9, 2009 Dear CIGAs, Nine points of logic and reason: This article is totally correct in saying nothing whatsoever has been done about the basic problem which is the failure of the OTC derivative. As long as the basic problem is not addressed by true valuation and bankruptcy of the friends of Washington all attempts to whitewash the disaster will in a short time wash away. The problem is how to value the failed OTC derivative properly because we can’t use the "zero" word. Because of #2 the US Treasury will guarantee a false value. Since the majority of SIVs will never perform due to bankruptcy in the asset chain, the US government will have to guarantee these at 100% of whatever value they intend to raise money on. Next, the US treasury will have to guarantee and/or provide 100% of the funds borrowed or raised to make this worthless unless guaranteed investment in a pile of miss-valued worthless SIV paper. Yielding the plan as it is now conceived is a useless camouflage of bankruptcy to be paid in via guarantee by the US taxpayer. We need no Bad Bank as we already have a really BAD one called the Federal Reserve. It is stuffed to its own bankruptcy level with all their financial pal’s OTC derivatives, also called toxic paper. The majority of dopes and all the financial media will praise this outstanding job of window dressing and whitewash painting as solid accomplishment at last. The media will have done a solid job instructing you that Toxic Paper is the villain, not those that manufactured the toxic paper OTC derivatives and distributed them, now having been bailed out 100% at your personal expense This is all a Devil’s financial brew being moiled and boiled daily in hopes of keeping you all firmly intoxicated. GT sez: As Dr. Phil says so often, "you can't change anything until you admit where you're at" (paraphrased) In MY WORDS: You can't fix something that is unfixable. You just have to admit that the money is gone and move on with what is left.