JUST LETTING YOU KNOW…
I have taken pains over the past couple of weeks to hardly even talk about Greece anymore. The markets stopped worrying about Greece and Europe. In fact, European markets stopped worrying about Greece and Europe, weeks and weeks ago.
You need to know that because there are still plenty of people out there that are saying that Europe is going destroy markets. I’m just letting you know that it hasn’t happened yet. In fact, the opposite has happened.
And if the markets are smart, it means that things are improving around the globe. Or maybe it’s something else.
I just want to read one thing to you out of Greece. And this will put it in a nutshell, that you have nutcases running the show around the globe. Now ladies and gentlemen, I don’t make these things up. These are supposedly, geniuses. They are running countries and central banks.
Eurozone finance ministers have agreed to a second bailout for Greece, after marathon talks in Brussels.
Greece is going to have a 107 billion of its debt written off, while they get another loan of 130 billion. I don’t make this up.
Let’s forgive 107 billion of debt and…let’s print money and loan them a 130 billion more euros.
These are the geniuses.
Beats the heck out of me how this works. You tell me what you guys think. I found it quite interesting.
Oil prices have really been shooting up. If you look at the price of oil, the USO is the symbol and it broke above an area of resistance. And we’ll see whether that continues. So I’m asked how that’s going to affect things. Will it affect the economy it? Will this hurt?
Yeah. I do believe so. To what extent, I don’t know. As I have said throughout my lifetime, nothing good happens if oil prices go up. We’re told how, “Oh my goodness, the price at the pump is going to go up. And it’s that amount of money that goes out of our pocket each week.” That is correct. Hard dollars.
But it’s not just that. It’s everything you buy that goes up.
Why don’t you Google this: What products have oil in them?
Tons of stuff. Almost everything. So yeah. The cost of goods go up. Cost of goods sold goes up. Your pocket and what’s in it goes down.
Now we’re starting to see some outcomes of this little breakout in oil prices today. And I do not believe there is a coincidence when this happens. This is strict 1+1 = 2 when oil prices go up.
The ultimate outcome is higher costs to everything and everybody. And you saw today the most direct business when it comes to oil and how much they use…the airlines plunged today…and a pretty darn good plunge. I’m doing a little bit of flying in the next month. The prices the airlines are charging are ridiculous at this juncture in comparison to what we’re used to. They’re really pushing the button because they know they’re monopolies.
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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.