A Sister’s Eulogy for Steve Jobs

I grew up as an only child, with a single mother. Because we were poor and because I knew my father had emigrated from Syria, I imagined he looked like Omar Sharif. I hoped he would be rich and kind and would come into our lives (and our not yet furnished apartment) and help us. Later, after I’d met my father, I tried to believe he’d changed his number and left no forwarding address because he was an idealistic revolutionary, plotting a new world for the Arab people.

Even as a feminist, my whole life I’d been waiting for a man to love, who could love me. For decades, I’d thought that man would be my father. When I was 25, I met that man and he was my brother.

Read the full article here.

NO MEANGFUL REVENUES…NOTHING BUT LOSSES SINCE DAY ONE…A STOCK DOWN 95% AND THEY STILL RECEIVED $43 MILLION

THE COMPANY HAS NEVER HAD MEANINGFUL REVENUES…HAS ALWAYS LOST MONEY. THE STOCK HAS GONE FROM $53.50 IN 2005 TO A BIG FAT NOTHING TODAY…AND THEY STILL RECEIVED A $43 MILLION LOAN GUARANTEE FROM THE DEPARTMENT OF ENERGY! WHAT THE HELL IS GOING ON HERE?

(Reuters) — Beacon Power Corp filed for bankruptcy on Sunday, just a year after the energy storage company received a $43 million loan guarantee from a controversial Department of Energy program.

The bankruptcy comes about two months after Solyndra — a solar panel maker with a $535 million loan guarantee — also filed for Chapter 11, creating a political embarrassment for the administration of President Barack Obama, which has championed the loans as a way to create “green energy” jobs.

Beacon Power drew down $39 million of its government-guaranteed loan to fund a portion of a $69 million, 20-megawatt flywheel energy storage plant in Stephentown, New York.

Source: http://www.reuters.com/article/2011/10/31/us-beaconpower-bankruptcy-idUSTRE79T39320111031

A FEW TRILLION GOES A LONG WAY

Back in late September, I was on a Fox Business show and was asked what I thought it would take to get the market bullish again. Tongue in cheek, I stated that maybe we wake up one day and the Fed announces a few trillion to just buy up the whole S&P. Well…not so sure we are not there.

First, we get the washout on October 4th where I told you I thought the market could rally off of. I actually told you that day that A low was probably in but in no way, did I expect this. October 4th started Operation “Twist” as well as an announcement of something “Tarp-like” and “QE-like” from Europe. Japan now announces $263 billion in QE. Europe announces $1.4 trillion. China looks like they are taking part also. On top of this, the Fed announced last week the potential for more QE. All this going on, while GDP is still in the plus column here. Just remember, QE1 came in right at the March 09 lows. QE2 came in right at the August 2010 lows. So there is a rhyme and a reason here as trillions now flood the world. But markets love it…simple as that.

After the recent washout low, we have seen a straight up move and a series of wild gaps and reversals. The outcome of all this, as well as the news out of Europe is that this morning, all major indices, all foreign countries, commodities, financials, baseball cards, Beanie Babies and everything else under the sun will be gapping up big time above the handles they have formed over the past week or so. The “duh” statement is that if this breakout holds, market is going higher. The outlier moves, both up and down…continue.

Just one last note. I woke up this morning to hear a Wall Street strategist already talking about a “melt-up” in the market. This is just 23 days after the call was in for a bear market and a depression ahead.

See what a few trillion will buy you.

 

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.

 

AMAZING OCTOBER

On October 4th, the markets were heading into new low ground as the call for a bear market pervaded the air. At 3:15, the market reversed and had a monstrous move into the close. This was a washout day…in where the last of the sellers give up. This action had me writing the following paragraph to you that day:

“Getting past that, I am considering today something akin to a near-term washout as the lows were undercut and then got back above. This serves to get rid of many late sellers. I gather questions will again be asked on whether this is the low. I will simply say it is A low…but don’t blink. This is going to remain a ridiculously over-the-top proposition to play as another ugly day turned into a very good day in less than 45 minutes. Bets on tomorrow?”

My subsequent reports reported better action but one must remember, a ton of resistance was ahead. Fast forward to today…and to be blunt…I am absolutely amazed at how much territory the market has covered in such a short period of time. This action reminds me of 1998 during that crisis. At the time, the market made a vicious double bottom with a high volume washout day in October. The market never looked back. So far, this market has not looked back…but I do keep in mind, we are not in the long term bull any more. We are in a longer term bear.

I must admit, I thought markets could go higher but I never thought we would get this. It just goes to show you how vicious the moves are now based on high frequency traders as well as the news-driven environment.

I didn’t write last week but if I did, I would have told you markets were stretched,extended and overbought to the upside…and that the market needed to rest. Well…the market got a whopping few days rest before major indices moved above another level. This leads me to tell you one important point right now…markets are now getting into the meat of massive resistance. Frankly, for me, I would like to see the market sit for a bit…and not just for a few days. Sitting lets stocks, sectors and the market form better patterns to move up from. V-shaped moves are just too hard to commit to.

A few notes:

GOLD has held the 150 day moving average for the 8th time since January of 09. This is amazing symmetry. It held to the penny on 10/20.

In the midst of this rally, a lot of stuff off the bottom have participated. Even the financial and housing stocks have broken above first resistance.

Foreign markets have participated but I must warn most continue to underperform our market. One of the characteristics of new bull markets is foreign markets leading the way.

SEMICONDUTORS continue to lead. If there is one chart to watch to tell you where the market is going, it is the SOX. It held the 50 day on the first pullback…which is good news…which led the rest of the market to follow.

Major indices are now all above the 50 day moving average. You know my thoughts on this. Above is good…below is bad. The whole market held there on this latest pullback.

I am still agnostic on where this is going. Some are already calling for a new bull just weeks after many started calling it a bear. I do not need to label it.

Lastly, the #1 question I get is on how this can be happening. After all, the numbers do not look good. After all, deficits around the globe are massive. There continues to be one answer. What do March 09, August 2010 and October 2011 have in common? They were all bottoms in the market (we shall see where this one goes) and more importantly, all had announcements of “printing of money!” We had QE1 around March 09, QE2 announced Aug 10 and by no coincidence, go check the news on October 4th, the day the market recently bottomed. Europe announced a form of not only QE but also a TARP. Subsequently, we are now hearing about a $1.3 trillion…that’s trillion…save! This is on top of other measures being considered. On top of that, the Fed announced last week that they were prepared for another QE. So leave no doubt, there is a method to the madness…but as I have told you, creating more debt and leverage to cure a problem created by debt and leverage…will not be the long term answer. I am not sure I want to be around when the bill comes due. But markets are up and everyone is happy again. Yippee!

 

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.

THEY JUST DON’T EVEN GIVE A CRAP ABOUT THE TAXPAYER…AND THEY DON’T CARE HOW MUCH CRONYISM IS INVOLVED. THEY JUST DON’T CARE!

 

Car Company Gets U.S. Loan, Builds Cars In Finland – ABC News

 

 

 

 

WOULDN’T EXPECT ANYTHING DIFFERENT FROM HARRY

In Harry Reid’s world, ‘Private sector jobs are doing just fine’ by Andrew Malcolm – Investors.com

 

P.S. Just a reminder to register now for my live Webinar on October 29, 2011. There’s just one day left for to you take advantage of the early bird discount. Plus, click here to submit questions that I’ll be answering during the webinar. 

 

THE TAX SYSTEM EXPLAINED IN BEER

Note from Gary: No explanation from yours truly necessary!

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100…

If they paid their bill the way we pay our taxes, it would go something like this…

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7..
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that’s what they decided to do..

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball.

“Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20”. Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes.

So the first four men were unaffected.

They would still drink for free. But what about the other six men?

The paying customers?

How could they divide the $20 windfall so that everyone would get his fair share?

They realised that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 (33% saving).

The seventh now paid $5 instead of $7 (28% saving).

The eighth now paid $9 instead of $12 (25% saving).

The ninth now paid $14 instead of $18 (22% saving).

The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

“I only got a dollar out of the $20 saving,” declared the sixth man.

He pointed to the tenth man,”but he got $10!”

“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”

“That’s true!” shouted the seventh man. “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison, “we didn’t get anything at all. This new tax system exploits the poor!”

The nine men surrounded the tenth and beat him up. The next night the tenth man didn’t show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important.

They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works.

The people who already pay the highest taxes will naturally get the most benefit from a tax reduction.

Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

ANONYMOUS

For those who understand, no explanation is needed.

For those who do not understand, no explanation is possible…

P.S. Be sure to register now now for my live Webinar on October 29, 2011. Don’t wait, there’s just 3 days left for to you take advantage of the early bird discount. Plus, click here to submit questions that I’ll be answering during the webinar. 

WHAT CUTS? MORE LIES BY THOSE IN POWER…BACKED BY A LAPDOG MEDIA

The Austerity Myth: Federal Spending Up 5% This Year – Investors.com