Your stocks are NOT safe

More from Jim:

My Dear Friends,

The Sentinel Ruling is now a legal precedent. In bankruptcy of your bank, broker or fund, you can find your assets in the majority of cases are backing the liabilities of the entity in front of yourselves. This is why you must act to protect yourself.

No one in this financial world is going to do it for you, and few will have the courage to recommend you escape Street Name. The Sentinel Ruling is the law and you can wake up one day and find out that your investments are gone.

The insurance programs will function as long as the incidents of bankruptcy are isolated events.

In a systemic collapse the insurance funds are not capitalized to meet the potential obligations. The guarantor you are relying on will have to be bailed out.

For securities there are only three ways to hold them:

1. Street name.
2. Direct registration.
3. Certificate form.

Anyone advising you to stay with the Street Name option is a babbling idiot not interested at all in your welfare.

In street name the inferred ownership is the broker or bank, not you. In Direct Registration and Certificate form, the distinct ownership is you.

In 99.9% of the cases of retirement accounts the answer is you are in Street Name.

How are your securities held? Do you even know? I dare you to ask!

Do you know what your broker’s capital ratio is? Find out as that number is the order of magnitude at which your broker is gambling on with primarily your money. I dare you to ask.

This time around those investors that are too lazy to consider protecting themselves will be demolished.

How would you like your gold shares at $3500 gold, outperforming gold, and one morning you wake up to having nothing anymore? It is because of the Sentinel Ruling that you now are behind the back burner in a bankruptcy situation with any fiduciary.

The system and their minions will do everything to keep you trapped in Street Name. Articles will be published trying to put you back to sleep on this issue.

Wake up, please.

Regards,
Jim

Well, let's see if I can get anyone to believe me here. I tried to post about this topic on another forum-which-must-not-be-named and was basically laughed off the thread.

Here it goes: I've never, ever have written a thread like "My uncle told me the world's gonna end next week, but I can't tell you why" before, but I'm afraid this is such a thread.

Not that the world will end (at least not that I know of). Also, I want to make this clear from the get-go: THIS IS NOT A PREDICTION OR A PROPHECY!!!

I'd love to go into the details, but I'm working for an investment firm which is gonna write about this situation in one of its paid services, so I can't front-run them -- a) it wouldn't be right, b) I could get in trouble for it.

So as much as I'd like to give you all the juicy tidbits, I'll have to be somewhat vague with this.

PLEASE NOTE: this is NOT a conspiracy theory; it's fact and can be checked. There's no doubt about this, and I haven't heard it from some obscure source -- this info comes from a big-time hedge fund guy who has done a lot of research and by chance found this out.

So, after all the disclaimers, I'll tell you what I CAN tell you, and I really hope that someone on this forum will take this seriously. You're welcome to check my thread record -- I'm not a nutcase (well, not more than most here anyway ;)), and I'm working in the investment biz.

I found out yesterday that contrary to what most people think, stocks aren't safe at all -- what I'm saying is that ordinary stock investors like you and me have basically no protection whatsoever. What happened with MF Global and futures investors can happen with stocks to anyone with a brokerage account.

I hope people here will realize how HUGE this is, without me having to spell out every little detail...

We had bad inflation overthe last ten years and it will continue on its course as the USD gets destroyed. But there is nothing to prepare for it long term. All one can do is realize things will never be the same.

Not at these prices...

When it ALL comes crashing down...

Probably a democrat

Thank you OP for the head's up. Is there anyplace that is more safe? Just thought I'd ask

Your vulgar and disparaging post to 83 hasn't won anyone on the fence over either. Youre just as vile. Just saying.

Your vulgarity proves your ignorance and stupidity. Let me take a wild stab . . . You're mad at the whole damn world, everyone else makes mistakes, but certainly not you, your (insert appropriate noun here) dumped you, your boss fired you, mom and dad never understood you and God doesn't exist. Quit feeling sorry for yourself and get off your deadbeat, disenfranchised, entitled ass! MOST people with stocks, 401Ks and IRAs are just average joes trying to do what they can to survive when the ENTIRE system is working AGAINST them, stealing what they WORKED for their ENTIRE lives! No doubt, when the SHTF, people like you will also bitch about those who've managed to stock up on a few cans of Spam. You'll be the first on the front lines, trying to loot, steal and pillage, rationalizing that the world OWES you! WRONG again! WORK at getting a BRAIN first, then you can open that deep, black hole that knows how to do nothing but spew VOMIT!

Most equities are recorded in "street name" - not your name, even in your 401 and pension.

related from Jim Sinclair:

Before you give up on finding a solution to protecting your retirement accounts against the real risks of street name, please Google "Self Directed Custodians."

Yes, I have names, but in this world recommending anyone is high risk. It is best for you to do your homework on who you find that will do what your discount broker or banks says no to.

They usually have legal opinions on their ways and means.

Regards,
Jim

More from Jim:

My Dear Friends,

The Sentinel Ruling is now a legal precedent. In bankruptcy of your bank, broker or fund, you can find your assets in the majority of cases are backing the liabilities of the entity in front of yourselves. This is why you must act to protect yourself.

No one in this financial world is going to do it for you, and few will have the courage to recommend you escape Street Name. The Sentinel Ruling is the law and you can wake up one day and find out that your investments are gone.

Real funny assholes here. Poor people are a real funny topic? Angry? Fuck yes.

People that can't see the pain right now in the world disgust me. Actually I got out of stocks and cashed in my 401K long ago and did just fine.

The utter lack of compassion and lack of awareness is disgusting. I can just hope that most of you are just stupid kids.

If not, may God help you...

[link to www.freerepublic.com]


this article shows that the brokers/dealers have successfully converted our $ into their $.
broker/dealers are not agents, they are OWNERS of your $. we are funding their lifestyles and choices.
if they go bankrupt, they pay the SECURED creditors first, the banks, their lenders. customers are unsecured creditors, they have no such agreement with their brokers.

brokers have taken title to your portfolio, your $.

Sentinel allegedly pledged hundreds of millions of dollars in customer assets to secure an overnight loan at Bank of New York Mellon, leaving the bank in a secured position but Sentinel's customers out millions.

the customer's assets are in line after secured creditors and just before stockholders. this means the broker/dealers and the banks have successfully taken title to YOUR investments and are acting as a principal, not as your agent. given leverage and off-balance sheet arrangements, your $ is at risk.

$ is just a medium of exchange, a storehouse of value. it's only as good as the next person says it is. governments issue $. but with leverage and electronic settlement, the broker/dealers and banks have been issuing $. much has gone overseas. think they can settle the $800 trillion in swaps? annual world GDP is only about $65 trillion.

[link to www.freerepublic.com]


this article shows that the brokers/dealers have successfully converted our $ into their $.
broker/dealers are not agents, they are OWNERS of your $. we are funding their lifestyles and choices.
if they go bankrupt, they pay the SECURED creditors first, the banks, their lenders. customers are unsecured creditors, they have no such agreement with their brokers.

brokers have taken title to your portfolio, your $.

Sentinel allegedly pledged hundreds of millions of dollars in customer assets to secure an overnight loan at Bank of New York Mellon, leaving the bank in a secured position but Sentinel's customers out millions.

the customer's assets are in line after secured creditors and just before stockholders. this means the broker/dealers and the banks have successfully taken title to YOUR investments and are acting as a principal, not as your agent. given leverage and off-balance sheet arrangements, your $ is at risk.

$ is just a medium of exchange, a storehouse of value. it's only as good as the next person says it is. governments issue $. but with leverage and electronic settlement, the broker/dealers and banks have been issuing $. much has gone overseas. think they can settle the $800 trillion in swaps? annual world GDP is only about $65 trillion.

Physical gold and silver; property -- best would be good farmland; if you want to stay in stocks, spread them around different brokerages.

YES DO NOT USE 'NOMINEE' ACCOUNTS. GET PAPER CERTIFICAES FOR YOUR SHARES AND YOUR NAME ON THE REGISTER OF SHAREHOLDERS. THEN YOU OWN THE SHARES. OTHERWISE, YOUR BROKERAGE WILL USE YOUR SHARES TO SHORT YOUR SUPPOSED INVESTMENT.

THIS IS A FACT.

Wow. I didn't think about that. Why is it I have to think of all the ways I am going to get ripped off before I purchase a stock, a car, a quart of milk? Maybe we have too many laws to protect us and instead, people ought to beat the shit out of crooks instead of relying on the gubmint to protect us?

Wise move... Get rid of all of your holdings tied to dollars, convert it and invest it in items of real value, and especially in survival essentials...

Before the first quarter of 2013.

Yes after who ever it is is sworn in as CEO of the corporate states of America in January the collapse will be a go, I say March- beware the ides of march.

Yes after who ever it is is sworn in as CEO of the corporate states of America in January the collapse will be a go, I say March- beware the ides of march.