Dear Friends,

Let’s review the highlights of this important day:

Securities Regulators and State Attorney Generals came down hard on the practice of naked and/or manipulative short selling.

There was emphasis made on legal and illegal shorts that have had a habit of speaking poorly about situations they are short to others.

London followed suit to a reasonable but hopeful degree.

The Toronto Senior Exchange remains silent on the subject. If the TSX does not declare its participation by next week many companies who are suffering from these malicious actions, particularly those with dual Canadian and US exchange listings, will delist. Toronto listings will move to the London Stock Exchange while remaining with their AMEX, soon to be NYSE, listing facility. That strategy would maintain dual nationality listings.

A form of Resurrection Trust much touted today has no application to a derivative meltdown. Simply stated, it will not work. Those that favor this idea demonstrate their total lack of knowledge concerning what OTC derivatives are.

The stock market was impressed by the worthless concept of a Resurrection Trust plus the probability of naked short covering.

If the SEC really has zero tolerance for naked and/or manipulative short selling it is too late to borrow shares.

Gold did its usual major round number dance today. The dollar got a boost from the actions of US equities.

Respectfully yours,
Jim