Michael Covel: News & Info.

First the video of the year:

More from commander Cruise:

The parody:

The anonymous group of hackers now out to end Scientology:

Scientology presents one simple example why so many people will never understand markets. If your core belief revolves around these types of views how could you ever accept the rational and logical view of the markets needed to make money?

What happens when second life has a second life?

Just how representative are the people who volunteer for psychology experiments? Interesting.

Trends exist and persist. Why? There are many, many reasons. One perhaps at first appearing off topic reason for why trends in the markets will persist can be found in the halls of DC government. Do you think the people who work for this government and or the people who run this government are rational, logical, thoughtful people? If this is how they run their workplace, how they run their government, do you think these same folks turn around and make rational, logical, thoughtful choices when it comes to their investments? I could pick any number of human behavior examples (and I am not mocking their porn surfing), but if so many people can’t even get going in a straight line when it comes to their daily job, if the leaders are not even in tune with what the employees are even doing, it’s not hard to understand why issues in behavioral finance will persist.

I admit when it comes to commentary on the Fed’s actions of recent I am lazy in a sense. It’s just too easy to let Ritholtz say it because frankly he says it so damn well:

Was it a misunderstanding of their mandate, inexperience, or just plain hubris? Regardless, it took only 2 days to learn just how ill-considered the Fed’s emergency market rescue plan was: To wit, a fraudulent series of losses led to a major European bank unwinding a huge trade: Societe Generale Reports EU4.9 Billion Trading Loss. SG’s $7.1Billion dollar unwinding led to panicked futures selling on Monday and Tuesday. Hence, we quickly learn what sheer folly and utter irresponsibility it is for the Fed to use its limited ammunition to intervene in equity prices. Their panicky rate cute were not to insure the smooth functioning of the markets, but rather, to guarantee prices. As we have been saying for the past two days, this is not the Fed’s charge. They are supposed to be maintaining price stability (fighting inflation) and maximizing employment (supporting growth) — NOT guaranteeing stock prices. I guess the European Central Bank has it easier: Their only charge is to fight inflation: “maintain price stability, safeguarding the value of the euro.” Tuesday’s panicked 75 basis cut will prove to be an historical embarrassment, a blot on the Fed for all its days. Failing to understand what their responsibilities are is bad enough; allowing themselves to be bossed around by Futures traders is inexcusable. And, having been rewarded for their past tantrums, the market will now be screaming for another 75 bps next week. As Rick Santelli appropriately observed, the Pavlonian training is now complete.

One of the posters to his comment offered:

Barry the Fed had to do it. The market was almost certain to crash. All the baby boomer’s retirement money would have went up in smoke and it almost certainly would have caused depression.

That’s where some are in their understanding of markets? The boomers better get ready to fill those Walmart greeter positions.

You feed the lions. They have not been fed for a long time. You throw them some monster steaks. They swallow those whole and look back at you with their mouths wide open. More rate cuts (steaks)?

I am not really sure what to make of this. Sure, the cute, try to be funny part is clear, but at the end of the day no one gets ahead regardless of their circumstance by begging and whining.

Sums it up doesn’t he?

An interview conducted for the German magazine Der Aktionär can be found here (PDF). The cover of the German translation of “The Complete TurtleTrader”: