I TOLD YOU SO…AND WOW…THIS IS A MARKET

Ok…I told you so. I am not thrilled at the outcome but it was a gimmee. I take no pride, no solace and no consolation in knowing what was going to happen. You see…when you go to a horse track, you typically make a bet on past performance.  

I told you there would be no spending cuts. Guess what? Amazingly, the fiscal stiff deal contained no spending cuts. Any deal going forward will contain no spending cuts. In fact, there will just be more spending. In fact, this recent deal gave a $430 million tax break to Hollywood producers. So nothing changes. Gifts will be given to friends and things will be taken away from those not liked.

I told you there would only be tax increases. Frankly, there was even more than I thought. Amazingly, they raised the payroll tax so the grand promise, the whole mantra, the whole campaign that was based on taxing only the privileged few…TURNED OUT TO BE A LIE. From dollar one, taxes are going up as payroll taxes just went up 2 percentage points. Of course, the supine, paws in the air, tongues wagging, lapdog mainstream media say nothing of this…and even more sickening is that the Republicons are not blasting the opposition for this. The Republicons should be yelling about this from morning to night…but nada.

I told you that letting the Dems raise taxes once…will just start the ball rolling for many more increases. Allow me to use the word “amazingly” again so amazingly, the Democraps are not even waiting. Before the fiscal stiff was even signed, my Prez was out already saying there are more tax increases to come. This weekend had one of the lead Democraps in Pelosi saying the same.

I told you Boehner is just one of them…in other words…the bad guys. In order to get to $16 trillion in debt, it took two to tango. Both parties are to blame. Of course, the real damage is being done by one party.

I told you the media would continue to kiss the royal behind…and kiss they do. There has been hardly any mention of the real problem and that is the criminal, the corrupt and out of control government spending…while all the talk is about higher taxes. Thank the Lord there are people like Cavuto and Dobbs who are out there talking numbers and logic.

So we continue down the path of fiscal destruction brought to you by my Prez who doesn’t even pretend to care, a party that has been hijacked by people who have never balanced a checkbook, another party that has been neutered, a media that just needs cheerleader outfits and pop-poms, an imbecilic Fed that just prints money to cover these deficits and a Treasury Secretary that just says “duh!” But hey…markets love it. Of course, until they don’t.

Now…I also told you the markets would pop because a deal would definitely be done but I must tell you…WOW! Holy crapomatic Batman…this is some market! The facts:

The NYSE broke out.

The RUSSELL broke out.

The MIDCAPS broke out.

The SMALL CAPS broke out.

The FINANCIALS broke out.

The TRANSPORTS broke out.

The NEW HIGH LIST has expanded markedly.

Foreign markets are smoking as they are all now printing money.

Groups such as airlines, autos, insurance, investment management, banks, brokers, materials, industrials and more…have all broken out. Many have broken out above long term ranges, some in the 2-5 year range. All this happening while earnings and sales growth are blah, many countries are in recession if not downright depression, unemployment here blah, deficits skyrocketing, taxes skyrocketing and the Giants not making the playoffs. (Had to throw that one in there.)

For me, the bottom line, never fight the tape. If the markets come back to haunt all this news, it will show up in distribution days where we will see persistent heavy volume sell-offs. It will show up in all these breakouts tucking their head in like a frightened turtles. But right now, all systems are go. If this changes, I will let you know. We are now headed for earning’s season where the good will get separated from the bad. We are also headed for the next con job…the debt ceiling stuff. It is sickening to see we are at the point where the con artists have many believing it is only good if this great country incurs more debt. How thrilling?

Sorry about all this sarcasm…but as a man of logic, all I have is sarcasm when it comes to these massive failures who brought us to the brink…are re-elected and just continue down the same path. We all know what massive debt has inevitably done to countries…and it is never a good ending. We are seeing it in real time in many countries. The next 6 years of taxpayer dollars have already been spent and it is only going to get far worse as there is a great chance that the inept Republicons will lose the house in 2 years if they do not get their act together.

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.