1-800-THE-GOVT... The Lines Are Now Open

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.

Well, that was one big bounce! One for the ages. As I noted in yesterday's report, a bounce, even a big bounce was way overdue... but this is ridiculous. Just rates a big wow and tells you just how far down markets had cracked. I just wanted to say here that after yesterday's action, I am so happy for the many that unfortunately stayed fully invested all the way down. This move back up gives you a chance to get a little healthy after a nauseating move down. Let's hope it continues. The action remains completely out of bounds and due to the fact things are so extended, we may see more upside into resistance.

But for me, that is not the story. While so many concentrate on the markets, I am more interested in what our government is doing. Does anyone even care or are people more interested in markets going up, no matter what the cost?

Our government has just spent about $3 trillion dollars of money they do not have. They have backstopped bad loans with money they do not have. They have bought into banks with money they do not have. They guaranteed mergers with money they do not have. They have insured deposits with money they do not have. Everything they have done is with money they do not have. How did we get into this situation in the first place? Yup... with leverage... in other words, using money that people did not have.

I am in hopes this ultimately works out. You just need to know the kitchen sink has now been thrown. While the short-term action in the markets is compelling... I must ponder the longer-term consequences of a government that continues to use money they do not have. I know the potential outcomes/repurcussions of printing out money from thin air. It is all there for you to go online and google. I must ponder what happens when the same people who caused the problems and did nothing about the problems, try to continuously cure the problems with just more and more money they do not have. I leave you with a quote:

The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those which fail.
-- Napoleon Hill

Keeping my fingers crossed!

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