JUST LETTING YOU KNOW
I received a bunch of emails. 60 Minutes had a show last night on Lehman Brothers. Now, I have not seen it, but I taped it. 9 out of 10 emails I have received went something like this, “Gary were you right!”
What I am being told is that corruption, felonies, misdemeanors, crimes, cover-ups—you name it were done in the financial markets. And, in all the emails I got, everybody mentioned the same thing…not a single person went to jail.
And some asked the question, “How can that be?”
How can nobody go to jail for these crimes that were committed?
What’s my answer?
I don’t know.
A lot of these crimes were done in plain sight. I still recall Citigroup—on purpose took a ton of bad loans of their balance sheet to make their earnings look better. I told you as it occurred. And then two years later they admitted to it. But nobody go in trouble.
So my answer is, I don’t know.
And therein lies my longer term worries. If you do not punish bad behavior, eventually somebody’s going to try to get away with that same bad behavior…and really nobody’s been punished.
So I don’t know what to tell you. But if you have a chance watch the recording of it.
That lets me segue into the other thing we found out today. As you know I have pulled no punches on John Corzine. I believe he’s a crook. I believe he committed a felony. If I saw him on the street, I’d say it right to his face.
It’s now being found out that I may be right. It’s now being revealed that his nuanced answers on Capitol Hill were just lies. John Corzine is a bundler of a half million dollars for Barack Obama (or more). Now what is wrong with this picture? A man who more than likely committed a massive felony where $1.5 billion of investors’ money is missing…and this administration happily, has no qualms about letting him be a bundler in raising capital for the election.
Any conflict of interest here, ladies and gentlemen?
Where is Eric Holder, our Attorney General on this? This is what I mean by a level playing field—there isn’t any.
I told you from day one, “Don’t worry John Corzine because if they had a video of you with a gun in a bank holding it up and the video was right in your face in place sight, you’d get away with it because you’re John Corzine…and that’s how it goes.”
And I’m sorry to say this ladies and gentlemen, it is what it is.
And I am as frustrated as you are. Do you know why?
I read here a little bit earlier:
A man…a very stupid man, went into a McDonalds and asked for a cup for water. Well, he cheated. He got soda instead. He needed to pay a dollar. When the manager noticed he was drinking soda, he said, “You have to give me a dollar.”
The manager called the police. The police came and charged him with a misdemeanor.
Since he had another misdemeanor, they charged him with a felony.
And now this guy who stole a Coke…is in jail.
But not one person from Lehman, or Citigroup or Bear Stearns, or Washington Mutual or Countrywide Financial OR John Corzine are in jail.
Matter of fact, not one of them has been charged. And they committed crimes in plain sight.
I’m just letting you know, I’m going to keep fighting the fight.
Every single one of you continues to be persistent and tenacious in the fields that you’re in, for you and your family. And just try to put this in the back in your file manager. And we’ll watch the markets as they will dictate policy when all is said and done.
And there will be point in time when I’m going to just stop talking about this because it is pretty much on the nauseating side.
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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.