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
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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