Posted On: Tuesday, July 29, 2008, 7:32:00 PM EST

A Revealing Day In The Systemic Problem Known As Our Financial System

Author: Jim Sinclair

Dear Friends,

There has never been a more revealing day as today when it comes to the systemic problem which can be best described as the breakage of the financial system. The spin today also reached unprecedented levels calling the Merrill deals a sign that the credit problem is mostly behind us. Please look at my report on www.JSMineset.com about the Merrill triple deals of obscuration, the revelation of the FASB news article and more. Recognize, please, that the method of computing future mortgage values spoken of today is extremely flawed, yet today the media spoke about seeing the low in the housing crisis.

My take is simple:

You must protect yourself immediately from failure of your financial agents, brokers or trust bank.

You must protect your investment shares and retirement accounts against the failure of the broker or trust bank.

Gold is going to $1200 this year.

Gold will trade at $1650 on or before January 14th, 2011

The US dollar will break below .7200 then visit .6200 on the USDX.

Don't let the madness of the fools who have been fooled soil your thinking.

PLEASE do not use margin in anything gold!

If you must trade futures, for your sake, use the basic technical analysis that I have taught you.

Utilize the three tools that I have given you that no text book speaks about. These are secrets of the trading ages given to you gratuitously.

All this is JSMineset's and my gift to you. JSMineset is the product of a team hell bent to save as many people as we can. Help Monty, Trader Dan and I by protecting yourself immediately! I have protected myself, my family and my company. Monty has protected himself, his family and his clients. Trader Dan has taken all the practical measures a professional trader can. Now you must do likewise for your family and business. Do it immediately.

Consider that I take as many calls as one man can do. I reply on JSMineset or directly to as many emails as any one man can. I reply to all investors as that is my law. This is all for you, not for me.

Consider that there are many more problems that will drop, all and every financial entity that fails will be rescued by PUBLIC money on the road to some degree of the awful Weimar experience. There is no other possibility. This is not my opinion. I do not think this, I know it!

Consider the following from CIGA Ken as one of the other shoes to drop:

Click here for Met life's toxic earnings report. How long before some of these Insurance companies go to the Fed Window?

I recently "tried" to dissect PGR's earnings. Progressive is a large Prop/cas insurance company located where I live in North East Ohio. I worked in underwriting/fraud/opps management there for 7 years. My focus was not on their business models but on the financial investment holdings of the many multiple companies that are housed within the corporation. Well they keep walking the slow line down on mark to market. I have been emailing back and forth with them to no real satisfactory end. How can an investor logically make a decision on whether to invest in a company when you do not know from one quarter to the next how many losses will hit the balance sheet? I cannot make an informed investment decision here. I have urged them to be aggressive in their loss modeling and I hope they come clean and help lead the group out of the downtrend. These conduit loan vehicles that you recently mentioned on JSMineset are probably not even marked down yet by most companies. As I read from your site today - pushing out FASB is just going to make it worse by delaying the inevitable. Who is going to invest now, knowing that more is coming later? Utter insanity. The markets want to purge, but they are held back.

My friend called his life insurance company to take a small loan against his life policy to clean off a credit card. The small company that holds his policy told him they are getting flooded with calls for this type of thing. Now my friend is not in trouble, he just wants to quickly erase all debts prior to this fall and winter. However he was shocked to hear that many people are in real trouble out there and calling in all available monies. His insurance agent was dead serious. I would also expect 401k hardship withdrawals and loans must be ratcheting up as well but have no data to back that up.

CIGA Ke