Current Financial State

I read this the other day on Jim Sinclairs website dealing with the current state of the economy and the government bailout. For those that don't pay any attention to these type of things, invest 2 minutes and 3-4 paragraphs...Dear Friends,If the actions this weekend had not been undertaken, the world’s financial system would now be directly inside a category 5 hurricane. Between now and the election, intervention to keep markets somewhat calm is being undertakenCONSEQUENCES is the word to remember.The devil is in the details.The purpose of this weekend's event is to attempt to consolidate a huge amount of OTC derivatives into one location in hopes of creating a wash. The point of this is to prevent OTC derivative counterparties from going broke.When an OTC derivative fails, notional value becomes real value. They got a taste of what a broken counterparty meant when Lehman went Chapter 11. It wasn’t pretty.Lehman Brothers, in Chapter 11, will be the first to benefit from the $700 billion to $1 trillion plus bailout.Do not let your guard down. Continue to take all the precautionary measures spoken about here. The dollar is toast around election time. Gold will trade at $1200 and $1650.The glory days of the naked short have passed even if they do not know it yet.Respectfully yours,Jim