Late in the day today, some news came down on a couple of fronts, the market and Lehman Brothers.

The market was in dire straits again today. It was pretty ugly until 3:24 PM ET. At that time, Italy’s Prime Minister, Mario Monti issued a statement saying that Eurobonds should be considered as a possible solution for the financial crisis in Europe. In other words, a part of the world that has massive debt, will have Eurobonds to add to the debt. And that is supposed to fix the problem of debt.

Ladies and gentleman, I believe in logic. I think you guys do too. What is logic?

Well, do not walk across a highway.

Do not jump Niagara Falls, although somebody just did and actually lived.

Logic, that’s all I tend to look for when it comes to this world.

And I’m sitting here watching the people in power. I cannot believe how illogical they are. And it just seems to me that it has turned into one big gigantic cover-up of their policies that have failed.

And how do they cover it up? More debt…every time.

Imagine you as an individual. You make a certain amount of money and you went haywire and spent like crazy and you have massive amounts on your credit cards. But your income has not gone up and you’re a fair person and you want to pay those credit cards back.

What do you do?

Do you get another credit card to pay off the other credit cards? Well, you could. But it doesn’t change the problem. You still have that credit card.

But these people don’t believe in logic. Here we have the Fed printing dollars, adding to the dollars that are already out there in order to fund more and more debt.

Now you have Europe with 17 or 18 countries with a bunch of them in dire straits. Why? Too much deficits.

And what’s the answer? Eurobonds. More debt. Let’s do more debt to cover up the debt that we already have. Yeah…that’s the ticket.

And look at how the market reacted to the upside.

Now in the short run, they can move these markets. But I gotta tell you…intermediate term the markets are still in rough shape.

Now the next part was sent to me at 3:26 PM ET today. The news was that the SEC had concluded their probe of financial fraud at Lehman Brothers.

No action to be taken

As you know, I have applauded the SEC for the work they have been doing over the past two or three years. But I am dumbfounded sitting here knowing that, in plain sight, massive felonies and fraud were committed at Lehman Brothers as well as others.

Yet no action is going to be taken.

Not an indictment.

Not a censure.

Not a fine.


I am dumbfounded. I’m speechless. I don’t know what to say. We knew that nothing would happen to John Corzine of MF Global even if he robbed a bank. He’s well connected.

I’m not sure what’s going on here with Lehman. But the fraud was out there for everybody to see. There’s attribution to the fraud. There’s been articles. There’s been videos. There’s been reports…you name it folks.

The playing field remains very bumpy ladies and gentlemen. 


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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.

2 replies
  1. Avatar
    Cory Workman says:

    So what do you think Gary?

    Are they all REALLY that STUPID?? Including our own (pathetic) leaders?

    Or are they all REALLY that CORRUPT, LYING, and purchased by the banks who are obviously the true puppeteers of the world?

    Which one is it?

    Personally, I think a mixture of both, but mostly the latter.

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