Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show "Investors Edge" on over 50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum's Trendwatch"...a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary's Daily Market Alerts click here or call 888.484.8220 ext. 1.

As you know, I try to inject a little bit of wit, a little bit of sarcasm and a little bit of comedy into my reports. I have nothing witty, nothing sarcastic and nothing funny to say today. I am worried...and not just about the market. I have been bearish this whole move in spite of the nonsensical calls of a bottom and the utter craziness from the pundits with their continuous yapping that financials are cheap. How can a Citigroup (C | Quote | Chart | News | PowerRating) be cheap when Citigroup doesn't even know what their numbers are?

First, let's start with the news. I am afraid all my fears I have been writing about are now coming to fruition. Bernanke has no control. Paulson has no control. The White House has no control as the economy is spinning lower and inflation is spinning higher. You don't need me to tell you the evidence. It is in black and white. And as you know, I am a man of facts. All COMMODITIES are skyrocketing while our currency, our housing and our stock markets head lower. This is a toxic cocktail for all those who refuse to listen. As I told you last time, I am beside myself that Bernanke can sit there with a straight face and tell Congess and for all the world to hear...that markets are saying inflation is anchored. Just for that statement, he should be fired on the spot and sent back to economics school. Of course, we should only be that lucky. I believe Paul Volcker should come out of retirement immediately and start doing what needs to be done...and that is facing facts instead of fighting them.

In spite of the clowns on bubblevision (I am no longer going to call bubblevision... bubblevision! The new name is the "National Enquirer Channel!") trying to game the markets every hour by starting rumors that never come to fruition, the market failed right at the logical point in a bear market...the declining 50-day moving average. I pointed this out to you in recent reports. The only reason the market bounced recently was because the market became about as extended and oversold to the downside as could be without crashing. We are now headed lower. I expect recent lows to be taken out...and while I never predict such things, I must say I would not be surprised if we start to see some sort of panicky selling as the market comes to the realization that there is going to be hundreds of billions more in losses for the criminal enterprises...otherwise known as banks, lenders, hedge funds, ratings services and the like. The recent AIG (AIG | Quote | Chart | News | PowerRating) announcement is just the start. I also believe there is probably a lot of illiquidity out there...and expect some forced sales to occur. This will obviously not help. I will continuously tell you that this is a great time to be out of the market (like I am) and study the characteristics of new bull markets as the big money is made in the first few months of a new bull.

Lastly, I would like to single out a few people who called all of this on a fundamental basis. All were made fun of and laughed at while they pleaded to those who would not listen. It is not easy to go against an always bullish Wall Street. I know!

Meredith Whitney...banking analyst who was in front of much of the banking problem...especially Citigroup.

Doug Kass who has been talking about the potential problems for over 2 years...and one of the great writers.

Warren Buffett. He called derivatives a ticking time bomb years ago...and please read his latest letter.

Jimmy Rogers...who nailed the commodity boom in advance...and has been short the Fannnies and Freddies and everything else under the sun.

Finally, hats off to a gentleman by the name of Fred Hickey...who writes one heck of a news letter. He has been spot on fundamentally with every aspect of the markets.

There have been others but felt I should point these few out. I do not miss a word they say.