How’s That Bailout Bill Working?
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.
One of my favorite shows is Law and Order Criminal Intent. Goren and Eames always find the bad guys because of facts, facts and more facts. They then put the facts together to come up with conclusions to find the bad guys. Well… let’s look at the facts:
Since the Bush/Paulson scam bailout proposal… which was pushed through with over-the-top scare tactics and then finally approved by the lemmings… the market’s results have been telling:
Since September 19th… only 12 trading days:
DOW 11,388 to 9447 down 17%
S&P 500 1255 to 966 down 20.6%
NASDAQ 2273 to 1754 down 22.8%
NDX 1745 to 1329 down 23.8%
Russell 2000 753 to 559 down 25.7%
I will repeat what I have been saying. The market is sick and tired of the people that have been running the show. They just continue to repeat the same mistakes over and over again. This bill was one of the biggest shams in the history of the markets… and guess what… the market has voted. Hank Paulson is now hiring a guy who looks like Dr. Evil and comes from… guess where? Yup… Goldman Sachs: ground zero for all this leverage that put the financial markets in this position. This is like giving keys to the bank to Bonnie and Clyde… and the markets know it. This bill was unconstitutional, flies in the face of everything government is supposed to be about and has been put in the hands of the bad guys. Again, the markets have voted.
In spite of stretched, extended and oversold conditions. In spite of the over-the-top bearishness that now pervades the air, the market has not shown any bid whatsoever. I remain in 100% cash  but continue to look for a turn as everyone has now come on over to the dark side. When I see that happening, I am looking for any excuse to get away from them. It has not happened yet, but maybe soon!
All this got me thinking. If either Obama or McCain would have voted against the bill (like they should have) f imagine the ads one of them could have run: ” My opponent voted for this bill. Since, major market averages have dropped over 20% in 12 days. Do you trust my opponent’s judgment?” This campaign would have been over if either of these man had the grapefruits to stand up to this joke of a bill!
Lastly, expect massive rate cuts any day if markets continue south. Whether or not it helps is another thing.
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