Investor's Edge with Gary Kaltbaum - Careful Of "Everything Is Ok!"

Episode Date: March 14, 2023

Follow Gary on GaryK.com or http://garykaltbaum.com

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Terms apply. Lounge access is subject to change. See Capital One.com for detail. Investors Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Coltbaum. All right, so we live to talk until another day. Just so you know, we're back from Mexico.

I'm Gary Coltbaum, handsome and buffed as ever. Just so you know, look, as we stated to you, we think what's going on in Mexico was isolated, some bad areas. We can tell you we flew into. Mexico City drove four hours at night, no problems, walk the streets at night, no problems. I don't know what to tell you. Maybe they're trying to politicize the immigration issue, because really that is a big problem. But we're just letting you know. And I just saw some people on TV saying don't go to Mexico. Again, we're just letting you know that it was fine.

Ladies and gentlemen, we don't pull any punches here. We don't have any bias. We don't have any agenda. We don't have any ulterior motive. When we are right, we will tell you. When we are wrong, we will tell you. But when we are wrong, we are wrong fast and we are wrong small. when we are right oh we are right all of a sudden a select few people are now coming out and blaming jay powell

for what just happened with the banks now they're blaming jay powell but he's still getting a pass you got marxist fraud dolts like elizabeth warren blaming donald trump for what happened with the banks. Of course, they blame Trump for the Chicago fire, the San Francisco earthquake, and herpes simplex number two. And you know I don't like Trump at all, but that's ridiculous. I'm about to explain to you specifically why it happened, what happened, with no bias, no agenda and no ulterior motive we warned you

a long time ago that unbelievably we let one man and when I use the word we whatever control the whole freaking bond market the whole freaking market

of yields that every person every business Every consumer, every business, small, big, large sets their decisions to, whether it's a mortgage payment, a credit card payment, an auto loan, a boat loan, an anything loan. Your investment decisions are based on it because those yields move markets. and we warned you, we warned people on TV. Somehow a bunch of lion sacks are getting on TV and telling you they called it right, I'm nothing. And that's okay, I've got you.

There's a line, don't screw with mother nature. There's also a line, don't screw with markets, but I have no idea how we got to the point where one man can destroy free markets and do whatever he wants. to do with them. And the biggest freaking market in the whole wide world. Everything is set to it. We warned you that it would bubble up asset prices. And when I use the term

asset prices, also ass prices. As a bunch of crazy bubbled up whatever that have all crashed. Destroying people's lives and destroying people's wealth but that was nothing well it was something if you lost the money we warned you that the ultimate outcome we weren't sure what would be but there'd be a crap load of

money lost and would turn everything upside down we warned you so here in a nutshell is what happened on this side you take the asset bubbles we already know about that everyone was locked into low yields not because of the market but because of Jay Powell Jay Powell printed money out of thin air trillions and bought up the whole market taking rates down to nothing taking rates down to nothing taking rates down to nothing taking rates down to nothing. One man did that. One man did that.

A two-year yield paid nothing. You couldn't buy a two-year government bond and get paid. So what did they have to do? Seriously, what did they have to do? A five-year yield paid nothing. A 10-year yield. paid six tenths of one percent paid six tenths of one percent paid six tenths of one percent j powell effed everyone silicon valley bank went out long durations their portfolio was locked in at low

yields but they had to sell those bonds to meet withdrawal requests it ended up with a one point $8 billion loss, which was more than the total net income for the company in 2021. There was a run on the bank. Peter Theo, one of the most influential technology people, told all the technology people get your money out. It spread to other banks. Anything above $250,000 isn't covered. The worry about it was the small.

smaller banks. So the government stepped in. I gather if something wasn't done, there would have been a lot more bank runs and maybe a bunch of banks collapsing. But there's a bigger problem, a much bigger problem going forward. What caused all the problems? What caused the bubbles and the crashes, the inflation, and they're missing of the inflation. And now this. You ready? Instead of insuring the FDIC, Federal Deposit Insurance Corporation, just $250,000 per account, they're now insuring every single deposit in banks. They just opened up something called swap lines on the whole U.S. banking deposit base. That's only $17.6 trillion. They don't have the money. The Fed just became the FDIC. Up next, we'll explain. This is the one only Investors Edd.

Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people. We manage investors' money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services including retirement planning, fixed income, and educational needs, all to assist you in achieving your financial goals.

Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals to determine a proper investment strategy. If your current approach to investing is not getting you to where you would like to be, call us to make an appointment for a complementary portfolio review. The number to call is 888-422-559. That's 888-4-22. 5559. That's 888, 422-5-5-59. Investment Advisory Services offered through call-bomb capital management.

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See Capital One.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple.

You record your show, upload it once, and Spreaker distributes it everywhere people listen. Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Sprinker, because if you're going to talk to yourself for an hour, you might as well publish it. It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun.

Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. How is it possible that any entity can guarantee $19 trillion of bank deposits? Let me be clear. It's called prayer. You got me? It's called prayer. These incompetent imbeciles that destroyed free markets and created all this are now using the same modus operandi again to fix it. Remember, Bernanke created the money

to fix what he caused with the real estate, which led and led and led to Jay Powell, creating the major disease Powellitis. Jay Powell supersized the same thing that caused the problems, but in a way unimaginable that finally tipped things over. So how is the Fed going to backstop 19? trillion will with prayer if withdrawals accelerate at any banks they would have had to sell these positions long-term positions at loss it's noted that the u.s banks had somewhere in the neighborhood depending on which rusty abacus you were using six seven eight hundred billion and

realize losses in 2022 off of their securities. But if withdrawals slow down or stop, the banks can wait out the duration of these long-dated securities. You got me? Because at the end of bonds, duration, you get all your money out. what the central bank just did, which by the way, has lost their ass on their own securities in the last year or two. They have set up an entity, get this, where banks can swap their troubled securities assets for par value. The banks can then go pledge their assets in return for loans equivalent to the original value of the assets.

What the central bank is hoping is confidence comes back. No more blowups. Crisis averted. Anybody see a problem would I just described? A central bank who has been wrong on everything and created all the problems. Problems just created another gargantuan money printing machine if things go south. What caused the inflation? It wasn't the Putin price hike.

It was the money printing machine of unimaginable amounts. If the crisis is not averted, holy crap. This also potentially gives the banks the go-ahead to take on more risk with our capital, our deposits, because the government now took out a crap load of toy paper

and wiped their butts so the people that caused all of this are now creating potentially 19... I'm going to take that back. There's no way it's ever going to get to 19 trillion.

It may get to nothing more. The markets will decide. The problem is the central bank is now taken over our banking industry. They took over the markets and the whole freaking thing blew up. Massive inflation, bubbles of the most stupid kind. And now they're running the banking industry. They're owning your deposits. They're covering your deposits.

And we're expecting things to end well. You do realize our government's broke. You do realize our central bank, I believe, lost a trillion bucks in the last year or so. It's more than a trillion. On their securities, these sickening control freaks are nuts. They have created the most Ponzi-ish scheme, vicious cycle in the history of time. Their easy money created bubbles and created inflation, which forced interest rates up, which now forces their hand, to cover the banking industry, who, by the way, I don't assign too much blame to.

This is all on one man rigging and manipulating interest rates down to the bone to the point where everybody was forced to do things that they did not want to do. Who wanted to buy two-year paper at nothing? Remember what I told you here? I had a good, very good income business. My income business went to zero because there's no way in hell. I was putting it in my people into long-dated paper earning nothing. I hope you guys understand how I just explain this.

The quacks just got more quacker. And Wall Street doesn't complain. They're thanking them. Remember what I told you about Wall Street? As long as they're protected, they don't give a crap. They should have been all indicted in 08. They were protected by the incestrian. relationship between D.C. and Wall Street. How many Goldman Sachs treasury secretaries have we had?

Now who's going to win out? The big banks. It'll get more concentrated. Who's going to lose out? The smaller banks. Because even though every deposit is covered right now, it's not. I'll explain. This is the one only investors. edge. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital

for details. This episode is brought to you by Spreaker, the platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen,

Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect.

Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change. See Capital One.com for details. We're listening to America is talking.

Investors Edge. He's got to be pleased. that the crowd is just on his feet here he's a Cinderella boy with Gary Colbomb comes highly recommended you're gonna feel better if you talk to him okay so here's the issue you ready what if one trillion two trillion three trillion has to be covered you tell me more money printing more inflation higher rates again you see the vicious cycle We're in a web. Brought on by one man.

No, really. One man and his little compatriots around the table in the Eccles building, or the Eccles building, whatever they say. There was a question I heard today. Why did these banks lock in such big positions at low interest rates? Didn't they know that interest rates would eventually go up? We're being told that everybody knew interest rates would go up. That's a lie. Nobody knew. You know what everybody thought? Jay Powell was a freaking genius.

Everybody thought Jay Powell had control. Jay Powell never had control, even when he was money printing. And asset prices were going up, that's not control. You know what control is? Free markets. I can't put lipstick on this pig. I'm going to go in prayer mode with what the central bank's doing right now, that there aren't runs. but we know they're going to be because you know human nature. Remember we have never trust any of these stress tests on these banks. They don't include human nature.

Did you see the lines of people at the banks trying to get money out? That's human nature. So let me state for the record I don't know when. Just like I said three years ago, two years ago, one year

ago, I don't know when. This is the worst possible scenario longer term it guarantees much more debt deficits and freaking control

of your lives and now that the government is every one of your dimes what kind of control are they going to demand of us you get where I'm going with this and you know I'm no conspiracy theorist but man

No, man. Let's move further. I'm going to answer some questions I made up that I think you'd want to answer. Number one. Yeah, be careful. Number two, don't think small. You got that? Number three, don't believe a freaking word of the pundits. I've seen so much BS in the last three days from people trying to tell us, they knew. We knew. We didn't know when.

We knew the eventuality that it had to hit the financial system. So I want to bring you a couple of things here about being careful. First Republic Bank was $147 at the beginning of February. At the lows yesterday, I'm not making this up, $17.5. At the lows yesterday from $147. worries about them. Even with the announcement of what the Fed was going to do, it still went down yesterday.

Today, listen carefully where I want you to be careful. They opened the stock up at, it was 51 bucks. You got me? It closed at 39 and change. Understand where I'm coming from? Don't get cute. That's all. I'm not telling you that the stock's not.

going up. Don't get cute. Do you know I've got emails and calls from people in the last two days. Should I short banks? And you know what I said to them about short? Wait a man. Which bank? Oh, it's down 70% already.

Well, what if it goes to zero? And then I got people should I buy the banks? You know what I said? Same thing. It's no way. Huntington Bank shares, HBAN. They opened that up today at 13th, the quarter, closed at 11.

A pack west They had that thing at 17 a quarter closed at 13 How about I'm just picking a few Western Alliance Bank Which by the way was 70 bucks five days ago They opened that at 40 it closed at 2980 If you get queued here You can lose your ass I'm using that turn because I want to make an impact

If you are trading them if you want to trade them we're not telling you not to just make sure you have stops in place because this market is not out to cash your register right now you got that J.P. Morgan that's held up best

why? Big pass the test in 08 human nature again remember human nature a bank America even bank America was $30.10 on the open today. Closed at 2876. Not a big drop,

but that's the same day. Just don't get cute. I do want to let you know you're going to see a bunch of insider buying. I will mention to you that Pack West had a bunch of insider buys in the last day at around 15.

It's 13. Oh, they also bought it 22 a couple of days ago. you catch my drift just because insiders buy does not mean they know what the hell they're doing and what's going on in the markets Schwab I do want to let you know that the CEO today announced that they are getting a big inflow of money even though the stock has been hit the CEO announced that he bought 50,000 shares today on the open or around the open $2.5 million approximately maybe a little bit more I'd be careful about that. I'd like to know what this guy's worth because if he's worth a couple of

hundred million he bought two and a half million bucks, that's like a dime to me. But we will keep our eyes open for insider buying. Could be meaningful. But in the maelstrom, notice the big word from your handsome and buffed host, they don't have a clue whether we're going to have another drop or not. And as I said, Pac West, they started buying couple days ago at 22 and it was a let's see PACW they bought their own stock people in know with 22 it hit five yesterday they were down 75% a day and they're the insiders you got me reality facts now there's people that are out there saying that this is the worst there are people that are saying it's not the worst there's more to come

We've been nailing this for you. And we'll tell you we're not sure. Why? For this second, depositors are covered. There's no risk. Backed by our government, that's $32 trillion in debt, backed by the central bank that printed to $9 trillion and caused all kinds of crazy and is down a trillion bucks on their own investments.

That's what we're supposed to trust. Just dealing with reality. As my grandma used to say, just give them the emus with no bias, agenda, or ulterior motive. And if it hits you in the forehead, it does. We'll hope for the best. We take no joy in any of this. But a bunch of ass clowns are running the show and are using conjured up money again to fix the problem that they caused. But Wall Street's happy. Remember, as long as they're taken care of, they don't care

of the moral hazard, they don't care about right or wrong. Just please protect our butts. Try to make markets go up. There is your story. Up next today, quite the day. This is the one only investor's edge. This message is brought to you by the Capital One, VIII. Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One VentureX card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker.

The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen, Apple Podcasts, Spotify, and about a dozen apps your cousin's swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones.

Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet?

Terms apply, lounge access is subject to change. See Capital One.com for details. You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! In the guester's edge.

with Gary Culper. So we know we have yesterday and today, and yesterday the market was up big and fritted it away at the close. Today, well, first off, the market wrap is brought to you by Investment-Models.com. That's Jim Moraback, one of the great market timers. No gray areas with the man you're either in or out of the market. It was proprietary indicators. Go check it out. Investment-dash-models.com.

So we were up, the Dow early, was up 490 points. At 3.17 p.m. It was down 11 points. At the close, it was up 336 points. Up 490, give back 500, gained back 346 in the last 43 minutes of the day. The S&P was up 64. The NASDAQ today was up 280.

At 320, it was up 98. it closed up 239. Sox up 88. Advanced declines good. New yearly highs in the market. I'm going to bet I can find maybe five. I'm looking right now. Bear with me. One, two, three, four, five, six. Seven. I got seven. And I'm going to name them because a couple of them are leading names that we've been mentioned here. Ariston Networks, ANET. Latus Semiconductor, LSCC, Cadence Design, CDNS. GE Healthcare was a spinoff of GE, G-EHC. Something called Insight Enterprises, NSIT. That's all I got for you in the whole market.

This is NASDAQ and S&P. A narrow list that we've been showing our... peeps every day let again today but it's become narrower I'm happy that we close better we'll see if we can build upon it big whipsaw day today next question do I think they're going to be other banks my guess is yes smallish though when I hear this from the CEO from Schwab that they're getting major inflows because they're big. I was hearing that some of the bigger banks were calling around to find out what other small banks were having trouble so they can raid the banks and their deposits. So you would think it should not happen anymore

because we're all backstopped by Jay Powell and Janet Yellen. We've nailed this for you, but we won't be like the BS artist telling you, oh, they know. We'll keep our ear to the ground, our eyes wide open, and hope that calm prevails. But leave no doubt, our government is against socialized losses. We're losing our capitalism, and we're letting them. By a select few morons.

Nothing personal. They suck at what they do. and they're running the whole freaking system. And remember, I'm the last of the conspiracy theorists. I'm dealing with the facts. What my job is here? Put my head down, keep focus. Look for the leading stocks and the leading groups

with the strongest earnings in revenue growth. And hope we can get a good window of the market going up. Gary, how can the market go up with all this crap going on? don't know, but we'll pay attention to it. Simple as that. This is an outcome of 23 years of ridiculous money printing and easy money, and a bunch of corrupt politicians spending. I hate the cliche drunken sailors.

They make the drunken sailors into pikers with the championship belt now in Biden's hip, with an unimaginable $6.8 trillion budget, which is not going to get through fortunately. Another president, the worst person, possible. Lower rates, rates have come down, but they spiked today. Spiked back up because they came straight down. But I have a sneaking suspicion. There's more distortions to come because they just raise the bar. Could this new easy money get the markets going?

Sure. I'm all for it. And we'll use our eyes on our technical prowess to mind that. But just so you know today, just today, if you bought the hot open, they did their best to screw you throughout the day and piss you off by the clothes. If you're sold. Don't get cute. In our webcast tonight, we did one in the morning. We did one middle of the day. We'll do it again tonight. where's the leadership? There is a narrow list. A lot of names went by the waistside in the last few days, but we'll see if they can resolve themselves back up, which they could.

Do not think this is going to be easy-peasy. Wish we can tell you more. Wish we could be more confident. But the same people who brought us this position, as I've said a thousand times in the last three years, are still running the joint. I'll be on with Charles Payne tomorrow and Fox Business Network 2 p.m. hour

and same time tomorrow here until then you'll have a great evening drive carefully when you get home, do like we do. It's quite simple. Make sure you hug your family. Make sure you hug your children. They will feel better. You will feel better. I promise. Thanks for joining us. I'm winded.

Bye-bye all. Take care. This has been Investor's Edge with Gary Coltbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to Garykay.com. That's Garykay.com.