Tropical Storm Paloma, the 16th of the 2008 Atlantic hurricane season, formed in the Caribbean on Thursday and was expected to strengthen into a hurricane on a path that could threaten the Cayman Islands, Jamaica and Cuba, U.S. forecasters said. The storm was located 65 miles (110 km) east of Cabo Gracias a Dios on the Nicaragua-Honduras border at 4 a.m. EST (0800 GMT), the U.S. National Hurricane Center wa quoted as saying by Reuters.