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.
In the past week, the FED added ANOTHER $200 billion to the system... letting flagging financial companies literally trade crap for treasuries.
In the past week, rumors abounded about Bear Stearns, meanwhile its stock continued to crater.
In the past week, the chairman of the SEC, Chris Cox, amazingly told reporters that Bear Stearns' liquidity was just fine. I whined that Chris Cox, the head regulator, should not be acting as a lawyer for a company the SEC regulated.
In the past week, the CEO of Bear Stearns, in an interview, stated liquidity was fine.
This morning, we are now finding out Bear Stearns indeed does have a liquidity problem as JPMorgan Chase (JPM | Quote | Chart | News | PowerRating) and the FEDERAL RESERVE BANK of NEW YORK have moved to provide financing to Bear Stearns (BSC | Quote | Chart | News | PowerRating).
It is obvious to me that the FED's move was for Bear Stearns and it is obvious to me that Chris Cox and the CEO of Bear Stearns may have, on purpose, sent suspect news into the market.
IS IT ASKING TOO MUCH for Congress to IMMEDIATELY bring Ben Bernanke, Chris Cox and the CEO of Bear Stearns up to the hill to answer questions?
IS IT ASKING TOO MUCH to ask the CEO of Bear Stearns why he told the world everything was fine?
IS IT ASKING TO MUCH to ask Chris Cox why he defended a company he regulates?
IS IT ASKING TOO MUCH to ask Ben Bernanke what he knew about Bear Stearns before adding $200 billion to the system?
IS IT ASKING TOO MUCH to ask all these people what they knew and at what time?
I have been writing incessantly for over a year of the lack of full and fair disclosure on Wall Street. I have been writing about how the securities industry is based on trust. Where can there be trust when it seems the top regulator may have been part of this clear lack of disclosure? At this point, I couldn't care less if the market goes up or down. I am worried about who is in charge. The inmates are running the asylum.
And don't get me started on the CPI numbers this morning. Sure... no inflation!
OK... with the strong Tuesday and yesterday's reversal off of the S&P prediction, I believe maybe, possibly a near-term low low has been put in... not unlike the low put in in January. I am not so sure we can ramp out of here but I would not be surprised to have some upside testing. There has been a little technical improvement but not much. I also must make note that this remains a very tough deal as the constant gaps and reversals make things almost impossible. I will talk about the S&P nonsense next week.
