WHY THE HEDGE FUND WORLD LOVED OBAMA IN 2008–AND VISCERALLY DESPISES HIM TODAY

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In May 2007, when Barack Obama was but an upstart challenger of Hillary Clinton, he attended a gathering of several dozen hedge fund managers hosted by Goldman Sachs at the Museum of Modern Art in New York. It was not a fund-raiser, just a chance for Obama to introduce himself to the investment wizards who had helped turn the hedge fund sector into the most lucrative and alluring corner of the financial universe. And the first question for Obama was as blunt as one would expect from this crowd. “If you’re elected president,” asked one guest, “what will you do to the taxes on the people in this room?” 

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SOURCE: http://www.tnr.com

THE MEDIA’S FOREHEADS WOULD HAVE VEINS POPPING IF THIS WAS UNDER GEORGE BUSH

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Just an unbelievable waste of taxpayer dollars yet this President complains about $4 billion in subsidies to oil companies that actually provide something. Read this:

In keeping with the recent trend of so-called green companies going into the red, another solar energy company supported by President Obama’s top administration officials declared bankruptcy today.

Solar Trust for America received $2.1 billion in conditional loan guarantees  from the Department of Energy — “the largest amount ever offered to a solar project, “according to Energy Secretary Steven Chu — for a project near Blythe, Calif., but declared bankruptcy within a year. It is unclear how much of the guarantee, if any, was actually awarded.

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SOURCE: http://campaign2012.washingtonexaminer.com

WE NEED MORE OF THESE FORENSIC INVESTIGATORS

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Sherlock Holmes is back. We’re not talking Robert Downey Jr., but rather Howard Schilit, 60, arguably America’s pre-eminent forensic accountant.

The author of the best-selling Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports has returned from a five-year retirement. In the booming stock market of the 1990s and early 2000s, Schilit was instrumental in bringing home the importance of forensic accounting to institutional investors. He founded the Center for Financial Research & Analysis in 1994, which sold and published research aimed at uncovering accounting anomalies. Thanks mainly to Schilit’s efforts, such analysis is now widely used by the financial community.

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SOURCE: http://online.barrons.com

A GREAT CHART WORTH NOTING!

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SOURCE: http://www.bloomberg.com

OLD PHONES DIE A QUICK DEATH

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I think its time to coin a new term for the smatphones and in fact all mobile phone ‘handsets’ industry about the biggest danger in this industry? The Cliff. The sudden comprehensive collapse of the business. Why does this happen in mobile and at rates – I mean the speed in terms of timing of the collapse – never seen in any other industry.

CASES

Lets take a few case studies. What am I talking about. First, lets go to all phones, and ten years back. For the end of 2001, Siemens had 7% market share in mobile phone handsets. They had held a reasonably steady top 5 position for many years. Its a bit like LG has been recently. And what happend? They suddenly fell off a cliff. By 2003 their market share was half, and two years later, half again, and they quit the business (the Siemens handset business was sold to BenQ of China).

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SOURCE: http://communities-dominate.blogs.com

OVER $15 TRILLION IN DEBT AND THIS YUTZ IS HAPPY ABOUT IT…AND HE IS A NOBEL ECONOMIST!

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“The boom, not the slump, is the right time for austerity at the Treasury.” So declared John Maynard Keynes in 1937, even as F.D.R. was about to prove him right by trying to balance the budget too soon, sending the United States economy — which had been steadily recovering up to that point — into a severe recession. Slashing government spending in a depressed economy depresses the economy further; austerity should wait until a strong recovery is well under way.

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SOURCE: http://www.nytimes.com

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IT’S ABOUT TIME TAXPAYERS DID NOT HAVE TO SUBSIDIZE ETHANOL

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Washington —The United States has ended a 30-year tax subsidy for corn-based ethanol that cost taxpayers $6 billion annually, and ended a tariff on imported Brazilian ethanol.

Congress adjourned for the year on Friday, failing to extend the tax break that’s drawn a wide variety of critics on Capitol Hill, including Sens. Tom Coburn, R-Okla., and Dianne Feinstein, D-Calif. Critics also have included environmentalists, frozen food producers, ranchers and others.

The policies have helped shift millions of tons of corn from feedlots, dinner tables and other products into gas tanks.

Environmental group Friends of the Earth praised the move.

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SOURCE: http://www.detroitnews.com

THROW THEM ALL OUT

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I could not help myself. I must write about this book. As I read it, my mouth was agape. How can any of these politicians be relevant when telling others about right and wrong. We just saw Raj Rajaratnam go to jail for many years. We saw Martha Stewart go to jail. We have seen the SEC buckle down on illegal insider trading but we now find out, those rules do not apply to our politicians. Our politicians can commit what in our world, are felonies. In their world…are no biggies. How has this come about and why hasn’t the mainstream media jumped all over this? To my chagrin, hardly anyone is talking about this now. It has been all but dropped. Imagine a politician buying land and then earmarking a road near the land in order to raise values. That politician then sells at a hefty profit. Imagine a politician on the banking and finance committee voting on financial matters and then either going long or short those same stocks which would benefit or not from their vote. Imagine a politician who had a vote on Obamacare and then buy and sell stocks based on where they knew the vote was going. Well…you don’t have to imagine. In plain sight, these hypocritical #&#@* have made rules for themselves that should make all regulators cringe. Now we get to figure out why tax evasion received a slap on the hand. These people think they are above us. These people think they are not accountable. I am sorry, in my mind, these people are crooks. If I traded on inside info…if I self-dealed…if I put myself in front of my clients, I am out of business and begging the courts for mercy before they send me away. Not in Washington. Tax evasion gets a slap on the hand as well as re-election. Stories now abound about politicians who came into office with very little money and on a fixed salary, leave with millions years later. How did this occur? Please read the book.

But the most amazing chapter in the book was chapter 5…all about the cronyism of this administration. ..as they took taxpayer dollars and handed them off to friends…some of them billionaires. Yes…this administration that is for the 99% is now found to be not for the 1%…but for the .5%…and all are friends. This administration has now broken all track records for ripping the taxpayer off in order to enrich their friends, their bundlers, their heavy lifters…yet where is the outrage? 60 Minutes did a show on all this. Was there any follow-up?  If this chapter is true, I consider this administration the most corrupt we have seen in ages as they are simply stealing taxpayer dollars that have not even been earned by the taxpayer (deficit spending) to enrich their cronies. If true, Obama’s class warfare is nothing but public relations and nothing but a fraud as his cronies are mostly wealthy, rich people with their hands out. Solyndra was not just an issue…it was a poster child of what they are doing with our money. This chapter is a must read for anyone that believes in fair play and a level playing field. It is absolutely sickening…and we have no say in the matter.

SPECIAL NOTE: Be sure to register now for my next live Webinar on Saturday January 21, 2012. I will talk about the important implications of early-January’s market action…and much more.  Click here for more information

 

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.

 

12/28/2011: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/122818.mp3

JUST LETTING YOU KNOW…

2 days of trading left in this nauseating year of 2011…nauseating because the market has been nauseating since February. That’s when a lot of things topped out.

I’ve been saying that this market’s going to be a pain in the rear end and very tough to play. I’ve been saying that for eons.

A lot of the market is in a bear market.

Foreign markets are definitely a lot worse off than we are.

No leadership — until the past couple of weeks. What was the leadership? Food, drugs, beverages, tobacco, household products, utilities, municipal bond funds, a few REITs, discount stores…in other words – DEFENSIVE ISSUES. And, of course, I also told you that it’s not good when defensive issues lead the market. And when you combine that with the fact that the economically sensitive areas are the ones that are in the bear market, it gives me pause.

But what else have I been telling you? I’m not worried about December so much. And frankly until last Monday, I wasn’t sure we were going to get that usual end of the year markup. But we got it.

My thought process was, we’re ok until January. BUT AS I ALSO HAVE TOLD YOU, I’M WORRIED ABOUT JANUARY. Because typically in markets that are not in good shape, once they paint it up into the end of December, they come selling in January, not necessarily in the first day like they did in ’08. Some times it’s two weeks later.

After today’s action, I am not so sure that the painting of the tape is not over and that they ended it today. I can’t say that for sure because we have walked into markets that looked so bad, and the next day they gapped it up 250 points. But every time they did that, they gapped it up on “another save in Europe,” another TARP…another this, that or the other thing.

Anyway, I’m just letting you know from my weary eyes…and wary eyes – I don’t like the action, knowing they could gap me up 250 points tomorrow.

For example, even with the recent rally that we’ve had up, commodities of all stripes are bearish as all heck…STEEL, MINING, COPPER, ALUMINUM, FERTILIZES, OIL, CONSTRUCTION, COAL, not to mention GOLD and SILVER which got obliterated today. FINANCIALS, while the budged upward, only budged. Foreign markets as I told you remain bearish and the Shanghai Index out of China is at new yearly lows. SEMICONDUCTORS are weak on a relative basis.

So I think you just need to be careful.

Frankly, not much has changed except, I was worried about January and another leg down. We’ll see if today started it. 

SPECIAL NOTE: Be sure to register now for my next live Webinar on Saturday January 21, 2012. I will talk about the important implications of early-January’s market action…and much more.  Click here for more information

 

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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.

 

MFing GLOBAL

More nonsense from Washington and Wall Street!

Just thinking to myself…if Jon Corzine was anyone else, wouldn’t his passport be taken away? Wouldn’t the powers that be look at him with a jaundiced eye…especially after the Madoff incident? Just a question to ponder. The playing field remains uneven as I believe that if this wasn’t Corzine, that person would be locked away with the key thrown away.

For me, the most amazing part of this story is that this supposed genius of Wall Street, the ex-head honcho of Goldman Sachs…actually and simply repeated the mistakes that brought down so many houses in 2008. To keep leverage above 30-1 with some saying it was much higher…just flies in the face of logic. He says the leverage was there when he started. Let’s say that this was true. It still does not take away from his inaction.

Which leads me to the missing bucks. They know where the money is. I am an RIA. I know how the whole financial business works. There is a trail for everything. There is a trail coming in. There is a trail coming out. Something is not right with this picture and I am confident if the truth comes out, it will be shown that money was moved nefariously to benefit some in front of others.

Which leads me to the media. Why aren’t they and why didn’t they bark up a storm about a man who took over a company, a company that was in business for decades and killed it within a year’s time? I am just wondering if this man had an R in front of his name instead of a D…what would have happened?

I am in hopes the real truth comes out but after watching all the nonsense over the years between Washington and Wall Street, after watching the patty cake questions of the “Honorable” Corzine, I gather somehow this one will end quietly. Think Franklin Raines.

SPECIAL NOTE: Be sure to register now for my next live Webinar on Saturday January 21, 2012. I will talk about the important implications of early-January’s market action…and much more.  Click here for more information 


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.