What Market Crooks Are Getting Away With

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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How is JP Morgan reporting an earning’s report where they beat
estimates…but also report $3.5 billion in writeoffs or impairment charges? How
much more can these comapnies get away with? Am I the only one that is incensed
at what we are seeing? Doesn’t anyone care that these megafinancials fixed
prices? Doesn’t anyone care that what has been done is a classic criminal
violation on several counts? Let’s see. I know there are price-fixing laws. I
know there are disclosure laws…or in this case, lack of disclosure. Doesn’t
anyone know these laws were created just for these reasons? To prevent criminals
from doing what these companies have done. Doesn’t anyone care that this
“superfund” is being created because these crooks know that they lost but are
only trying to cover up these losses…or extend them way out into the future?
Which leads me to the next question. How are they able to get away with this?
Yup…it’s called TOO BIG TO FAIL…and it’s called…MY BUDDIES RUN THE
TREASURY and MY BUDDIES ARE THE REGULATORS. What about the accountants? Oh
yeah…hear no evil..see no evil…speak no evil. What, you expected something
from the accountants?

That leads me into my next question. If the criminals commit criminal acts
and the regulators just try to save the criminals, who is ever going to act on
this? Who is ever going to pay a price? What kind of message is being sent and
what kind of precedent is being set? If a superfund is being set up for $100
billion, why isn’t the $100 billion on the balance sheets of these companies?
These questions are valid. These questions are fair. HERE IS MY HOPE. I hope
these whining imbeciles cannot sell one share of this superfund. I hope these
imbeciles are made to mark to the market every sham transaction that is floated
out there. I hope some of these people are perpwalked for all to see. I hope
markets readjust to reality…because if they don’t, then one day markets will
fall under their own weight and that is going to be ugly. You are reading up on
the 20th anniversary of 87? My hopes do not matter. The treasury and the
regulators are colluding with these companies because they are all part of the
same club. They are all trying to protect the club they are a part of. For those
that think I am a guy who just complains about everything, I have been writing
for many years. Not until the past year or so, did I start writing like this. I
cannot be writing about these episodes if they were not happening…and I am
sorry, you cannot spin this any other way. You cannot put lipstick on a pig and
you cannot presume innocence on people who knew exactly what they were doing.

Markets opening up big this morning after 3 out of the last 4 days with
distribution. I am taking pains to figure out why a report from Intel and Yahoo
would do this. But it is what it is. We have a 2-way tape with the leading
stocks and groups in fine shape…with the other half getting worse. Did you see
the action in the banks the past couple of days? Wow…a ton of banks heading
into new yearly lows…and on volume. Years ago, financials would lead the
market down…but as I have told you, we are in a new era where OILS,
COMMODITIES, SHIPPERS, FERTILIZERS and a slew of multinationals and big cap
everything lead the way. All that happened in the past few days was the extended
leaders pulling back…while the bad got badder. I hate when markets have an
orderly decline and then gap up out of nowhere but that is the way the cookie
crumbles. Volatility and gaps are the name of the game…so get used to it.

Gary Kaltbaum