What Has Happened to Free Markets?

Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show "Investors Edge" on over 50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum's Trendwatch"...a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary's Daily Market Alerts click here or call 888.484.8220 ext. 1.

I must...I must ask the question...a very important question. WHAT HAS HAPPENED TO OUR FREE MARKETS? Where have they gone? I do not believe I am the only one asking this question. Let's see.

Our Treasury Secretary, no less than 10 times in the past few months, has opened his yapper to tell us housing was stabalizing and or bottoming. Why hasn't anyone asked him to appear on the hill to answer where his information was coming from? This has been an obvious attempt to interfere in the markets. Why do they have to interfere with the markets?

Our Fedhead...no all the Fedheads have been out no less than several hundred times over the past year to tell us everything WAS A-OK. Don't worry about this, that or the other thing. Why can't they keep their mouths shut? Why do they have to interfere with the markets?

Why did Bernanke lower the discount rate the day of options expiration instead of a day that did not mean as much? Why is he interfering with the markets? And in a laugher, Bernanke was quoted just this morning as saying" It is not the Fed's responsibility to protect lenders and investors from consequences of their decisions!" Who is he trying to kid? Dropping $250 billion on a problem is exactly that. Let me rephrase that...that's one quarter TRILLION.

Why did George Bush decide to make an announcement that he was bailing out...ooops, excuse me, helping out subprime borrowers the morning of a light volume, pre-holiday trading day? In fact, why is George Bush trying to bail out anyone? Why is George Bush trying to interfere with the markets? This is not his job.

Whatever happened to RISK IS RISK? You take stupid risks, you pay the piper. Whatever happened to that? Why is someone who bought a house at the top of the market bailed out? Why does someone with no money who took a mortgage they couldn't afford bailed out? These are not innocent people. These were greedy people who became greedy at the most inopportune time. These people thought they could buy a home with no money down...and with no net worth...and sell that home 3 weeks later and make a ton of money...yet they get bailed out? Why are the hedge fund managers who went 15-1 margin bailed out? Why are lenders who lent money to people without asking for income statements...without asking for net worth statements...without asking for anything...bailed out? Why are private equity idiots who are sitting with over $300 billion in unfunded buyouts?

I know free markets. Free markets are a friend of mine. These are no free markets. Our markets are now being constantly interfered with in order to save the so-called "masters of the universe" and I have to tell you, it is downright depressing. If markets want to go to the moon, I am all for it. If markets wanted to go into a bear market, I am all for that. I just want free markets.

Investors who bought the top of the market in the year 2000 lost a lot of money. Were they bailed out for their stupidity? Nope! If they felt they were wronged, they sued...some won their cases...some lost. That's the system. I did not see anyone lifting a hand to Aunt Mary and Uncle Bob who lost money because they bought a ton of Lucent at the highs.

Do not bail out the morons who bought at the top of the cycle. If they feel they were wronged, let them sue the lender in court. I am not a cold-hearted person. I just believe what we are seeing is laughable and needs to end. I am urging all free market proponents to speak up about this nonsense.

The market is all over the map this morning but since it is end of quarter for the BROKERS...I do not expect a reversal...but making bets in the nonsense we have been seeing is not conducive to fiscal health. I will have a market wrap-up on Tuesday. And if you want to know why all the spastic action, look no further to all the open mouths. Fed minutes send markets lower Tuesday...a Fed letter send markets up Wednesday. Everyone needs to shut up. Have a great holiday weekend!

Gary Kaltbaum