Gary Kaltbaum is owner and president of Kaltbaum Capital Management, a registered investment advisor Gary has almost 30 years experience with the markets and is a Fox News Channel Business Contributor. He appears on both the Fox News Channel as well as the Fox Business Network. Gary is also the author of the book “The Investors Edge” and is also the host of a nationally syndicated radio show with the same title “Investors Edge” on many stations across the U.S. The show airs live 6-7 pm EST and can be heard on the web at www.garyk.com.
Gary works closely with many charities and has been past Chairman of the Board of the Boy’s and Girl’s Clubs of Central Florida which serves over 12,000 young people throughout Central Florida.
To contact Gary, click here.
we are screwed
Good expose on the government`s official Ponzi scheme, Socialist Insecurity.
Back in the mid`80`s, former budget director, David Stockman, had a great solution …if the Securities & Exchange Commission had jurisdiction over the Executive & Legislative branches, many of us would be in jail. Amen.
Wasn`t Mr. Madoff charged by the SEC for running a voluntary Ponzi scheme, wrongfully reported to be the biggest Ponzi scheme in history, when we know that distinction belongs to the politician`s job security scheme, Socialist Insecurity.
So, let the `revolution` begin, again…no more FICA taxation, without representation, by restoring FICA payers` 10th Amendment rights.
Like private sector Ponzi schemes, mandatory Socialist Insecurity should be strictly voluntary.
Harry Thompson
Gary, when Bush was in office I emailed you about the growth of the debt and about buying precious metals. You told me you been hearing that crap for 20 years don’t worry about it and the precious metals was dead money. I stopped listening to you. Started listening again in August and all you yammer about is the debt. What is the deal? Bill
Bill…you are making this up. I have been talking about debt since 05 when Bush’s policies sent debt higher. Ia m louder about it now because Obama making Bush look like a piker. Bush’s worst year was 300 billion in debt.
As far as metals…I have been on and off bullish on gold for years and have owned it off and on.
FEDERAL BENEFIT CHECK MY ASS!!! This really makes me mad!
Subject: Fwd: FEDERAL BENEFIT CHECK!!! This really makes me mad!
FYI…
SOCIAL SECURITY NOW CALLED ‘FEDERAL BENEFIT PAYMENT’/ENTITLEMENT!
Have you noticed, your Social Security check is now referred to as a “Federal Benefit Payment”?
I’ll be part of the one percent to forward this. I am forwarding it because it touches a nerve in me, and I hope it will in you. Please keep passing it on until everyone in our country has read it.
The government is now referring to our Social Security checks as a “Federal Benefit Payment.” This isn’t a benefit – its earned income! Not only did we all contribute to Social Security but our employers did too.
It totaled 15% of our income before taxes. If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security. If you calculate the future value of your monthly investment in social security ($375/month, including both
your and your employer’s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved!
This is your personal investment.
Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month. That’s almost three times more than today’s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it – it’s a fact).
And your retirement fund would last more than 33 years (until you’re 98 if you retire at age 65)! I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts.
Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did. They took our money and used it elsewhere. They “forgot” that it was OURmoney they were taking. They didn’t have a referendum to ask us if we wanted to lend the money to them.
And they didn’t pay interest on the debt they assumed. And recently, they’ve told us that the money won’t support us for very much longer. But is it our fault they misused our investments?
And now, to add insult to injury, they’re calling it a “benefit,” as if we never worked to earn every penny of it. Just because they “borrowed” the money, doesn’t mean that our investments were a charity! Let’s take a stand.
We have earned our right to Social Security and Medicare. Demand that our legislators bring some sense into our government – Find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it.
Then call it what it is: Our Earned Retirement Income.
99% of people won’t forward this.
Will you?
Visit us on the web at http://www.nhyates.com!
(My analysis of what I would receive from a private account, as proposed by Geo. W. Bush and ridiculed by by the media, academics, Republicans (RINOS), Democrats, etc,. and my social security tax was invested 50% S&P 500/U,S. Treasury Bills I would receive over $8,000/mo. now. Sent my info to the RNC and never got a reply! db)
You disagree with balanced budgets and effective government…because that is where I stand on politics?
And yes…sickening no one in jail.
.
Of course, balanced budgets should be a high priority goal.
But it has to be done in acceptable limits.
The 2008 crash was mainly caused by the banks desperately trying to increase their profit.
The leverage problem potential in the housing market may have been initiated by Reagan, but was supported by each subsequent government and accelerated by during Bush (maybe so the economy could support 2 wars?). Since 2008 we have heard from “financial gurus” that their linear regression computer models do not work very well with nonlinear behaviour of human panic, so they had to face “uncharted waters”. These big executives did NOT earn their bonuses, they were given power to make bad decisions and they abused their power.
Of course they all say “as CEO I take full responsibility”. But instead of returning their bonuses, the bonuses in 2009 hit an all time high! Yet many people are out of work, they should not have to go below the poverty line due to the mistakes of bank execs who got bailed out with tax payer money. The difference between rich and poor has grown the last 2 decades to a disturbing level. History has many examples with dire consequences. Capitalism has been great to the USA with so many people enjoying a good standard of living, but many financial institutions crossed the line and abused their power in pursuit of profits (in itself a honorable goal if done correctly) with total disregard to honesty, integrity and ethics.
I too despise the waste of tax payer money by governments, but many countries have very high ranked execs who were from Goldman Sachs and are “forced?” to cater to lobbyists.
I wish we could have elected officials who follow their true conscience rather than being influenced by what is “expected” of them.
I know little about economics, I am a retired engineer. But that nobody is held accountable disturbs me. I often hear the excuse “but our competitors did even worse”.
I like your program because I do not hear what everybody else is saying. I hear someone that has done his homework, has checked many aspects, market indicators and evaluated them to the best of his ability so you can help us understanding this difficult and ever changing market.
Politically Greece has nothing to be proud of; but between Greece and the USA there is a vast difference with Germany somewhere in between. I like Warren Buffet suggesting that the rich should not be opposed to carry more of the burden if it could help the economy in a proper way. Welfare has a problem that it is not easily accountable and does not provide the right motivation, but were banks accountable?
Perhaps I am naive, but I think that to solve some of the economic problems we face could have a greater benifit for the rich in the value of life and the persuit of happiness than the extra money in the bank and it would make a world of difference for the unemployed. We see the increase in street gangs by unemployed youths; is tax payer money not better spend on social/educational programs to reverse that trend than on bailing out greedy banks?
I just listened to yesterdays podcast (wednesday 11 july).
I often listen to you, eventhough I often disagree with you on the political side.
But that is totally compensated by your honesty and integrety about your knowledge of the market.
Ever since 2008 I felt some people should be jailed, especially from GS with them helping Greece to violate EU rules; but the financial advisors of the US (and other) countries are often ex GS executives.
But here is a link that people can use to vote their displaisure of not having them accountable.
http://www.avaaz.org/en/bankers_behind_bars_f/?tta
I and my wife have signed the petition.
In the past they have been successful or at least contributed to “true justice”
Henk
THey know where you go because:
Websites know where you go by cookies. You can turn off cookies if you dont want to get followed. Some sites require cookies.
Bet you used Google.com
GARY
WHAT DO I DO NOW?
I BOUGHT 1000 SHARES OF FB AT 41 AND NOW PREMARKET IS BREAKING SYNDICATE/IPO AND HEADED TO 37.
DO I HOLD LONG TERM FOR THE COMPANY TO MAKE MORE PROFIT OR WITH THE CREDIT CRISIS AND WORLDWIDE PROBLEMS REOCCURING, DO I SELL NOW?
John,
You are asking me to guess. There is no way to know. I do have valuation thoughts but it doesnt matter because in the past, we have seen valuations get out of hand to the upside. I just think the deal has been damaged here…and mayu take some time to get footing. Decide for yourself your own tolerance and iof the number is hit…act on it.
Can you please send me your show from August 8th? I want to get ready emotionally.
Mike
Hi Gary,
You have been so prescient about the markets and so I wonder why you had not suggested inverse ETFs (e.g. SDS)? Except for a counter-trend bounce, is it not still possible to buy these SDS types?
Thanks for your great commentaries.
Dan
Because I am scared crapless on a daily basis that Bernanke will announce a $10 trillion QE…
and shorting is a pain in the rear…
easier to make money when markets turn up…but good question.
In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years prior:
“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship.”
“The average age of the world’s greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:
>From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
>From dependence back into bondage.”
The Obituary follows:
Born 1776, Died 2012
It doesn’t hurt to read this several times.
Professor Joseph Olson of Hamline University School of Law in St. Paul , Minnesota , points out some interesting facts concerning the last Presidential election:
Number of States won by: Obama: 19 McCain: 29
Square miles of land won by: Obama: 580,000 McCain: 2,427,000
Population of counties won by: Obama: 127 million McCain: 143 million
Murder rate per 100,000 residents in counties won by: Obama: 13.2 McCain: 2.1
Professor Olson adds: “In aggregate, the map of the territory McCain won was mostly the land owned by the taxpaying citizens of the country.
Obama territory mostly encompassed those citizens living in low income tenements and living off various forms of government welfare…”
Olson believes the United States is now somewhere between the “complacency and apathy” phase of Professor Tyler’s definition of democracy, with some forty percent of the nation’s population already having reached the “governmental dependency” phase.
If Congress grants amnesty and citizenship to twenty million criminal invaders called illegal’s – and they vote -
then we can say goodbye to the USA in fewer than five years.
If you are in favor of this, then by all means, delete this message.
If you are not, then pass this along to help everyone realize just how much is at stake, knowing that apathy is the greatest danger to our freedom..
This is truly scary! Of course we are not a democracy, we are a Constitutional Republic . Someone should point this out to Obama. Of course we know he and too many others pay little attention to The Constitution. There couldn’t be more at stake than on Nov 2012.
If you are as concerned as I am please pass this along.
More short sales bring new scam: flopping
http://realestate.msn.com/more-short-sales-bring-new-scam-flopping?GT1=35010
last week you said S/S is a Ponzi scheme. I believe you are wrong.If you get an official defenition you’ll see it doesen’t meet scrutiny. You also said benefits are paid out with other peoples money…..Correct. but those monies are a return of the peoples, who paid in(some as much as 40 years) and by law must be invested in U.S. treasurey bonds whose earnings are pitiful. Any S/S money surplusses over monthly disbursements go into the Gov.general fund with an IOW book entry to the non existment! S/S trust fund. Had the earnings plan paid out more than that was legal ala the madoff fraud then it could be rightly be called a Ponzi scheme. If we are to say S/S is a ponzi scheme of which long ago was declared an illegal entrerprise then our Gov’t is operating a criminal one.and therefore should be trerminated immediately. I believe this issue will become a very much talked about and investigated one from here on and eventually wind up in the U.S.Supreme Court.
This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want…HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!
Gary:
You’re the brightest commentator on Fox Business.
You have broken down the mixed messages of other commentaries and some market narratives that tend to obfuscate to entice unsophisticated investors back into this treacherous market. I have listened closely to your warnings and explanations of what is the “big picture” that one needs to have in order to make a judgment in this time of political pressure on our personal fortunes.
My family and I have benefited and are now prospering in light of your perspective. We moved out of the market into gold and precious metals not to make or increase our fortune but to preserve our wealth as an alternate currency. Until some sanity returns to bring back capitalism from the grip of our current political elite aristocracy we will wait.
Thanks for your help and clarity,
David Sauber M.D.
Keep in mind, GOLD may have finished a climax run as everyone jumped onto the pile late…so careful. I appreciate the comments.
Hello Gary:
You are the best and I like this new website very much!
A few years back you had a daily service that you offered that provided stock picks and advice. Are you doing that anymore?
be well
DB
I still have an email service but moving it soon. You will see it on this site soon.
First, your email tab doesn’t appear to work. I had to reply to one of your postings.
Second, this market is an excellent example of how it is easier to know when to get out than it is to get back in. Would a strategy of buying the market, for example SPY, after a low is tested and holds rather, or in addition to, trying to pick stocks? Interestingly, investors who just did nothing through this sell off may do better that those of us who try to pick stock trends. They have recovered half of their losses while I have been stopped out of several leading stocks in this thrashing around. My losses are small but they are still losses. Can you comment on this tonight on your radio show?
Thanks,
David
This has been a great market to be a spectator…simple as that. And I dont think anyone has recovered half their losses…just go check out the NYSE,RUSSELL as well as foreign markets. Action makes it very tough to commit…but a few things starting to work.
dear mr. kaltbaum. i have been watching you on fox news for the last couple of years and could tell you really know what you are talking about and have the same views that i support. i just went to your website for the first time and now will be following your site to gain from your knowledge. please let me know if you need anything. thank you b.clark
Tell a friend!
Hi,
I heard you for the 1st time yesterday… on FOX.. i dont get the business
station from fox..
I know people dont want to believe the market could go further down.
What do you use to determine what you think is a bottom in a bear market
and Why do you think it will go below 10k.?
Thanks much in advance
Ed
You need a follow through day…which occurred yesterday but also need leadership…and stocks ready to break out…not even close.
Gary, love your program, enjoy the richness of your new website.
A question about short selling:
Given: Wall Street and others short stocks they don’t own.
Question: Can Wall Street and others short homes they don’t own?
— if so, how?
Best, G Paul (retired – 2000)
You cant short what you dont own or cant borrow.