Monday Dow down 780 and the world is on the brink of implosion. All the news shows, all the front pages of the biggest papers, they all painted an end of day scenario. Today, Dow is up 485, recovering a huge piece of the 780, and the story is a footnote on the nightly news. Does the average guy or girl ever stop to think about the level of manipulation being thrown at them? It is very similar to the film ‘V for Vendetta’. That is the messaging, the propaganda, and the fear are quite an impressive achievement for politicians and the media. It might be a sick and perverse achievment, but it is impressive.

Why do we reward U.S. car makers for 30 years of futility? U.S. cars can’t compete with Toyota, BMW or Mercedes in the market, so we now we give them a big gift to make more crap? What next another “K car“?

Writer Tim Shipman outlines the end of the financial world. Now that is how to drive the fear into the average guy!

So why did people line up to put their money into IndyMac bank? It is a question I had not considered until I went to an IndyMac branch this summer in California. What did I learn? While waiting outside to talk to IndyMac clients, some of whom were going to lose money due to IndyMac’s failure, I was approached by a local broker who worked next door. He had spent much time talking with IndyMac clients about coming over to his nationally known (and very solvent) brokerage and parking their money there. Even in the midst of IndyMac’s share price cratering, even in the midst of constant negative news, people would not leave IndyMac for safer havens. Why? They all wanted those high return saving and money market accounts IndyMac was offering. The extra 1% (or whatever it was) was so enticing to these people that they were willing to risk their entire account values for a few extra bucks. Crazy? Of course. Normal behavior for some people? Unfortunately, yes.

These are some thoughts about my new film coming out:

A new YouTube clip I just posted.

I am preparing an in-person trader training program. This would be on top and beyond the course materials, lessons, and books I have shared over the years. The program will incorporate unique trading research and ideas that I have assembled over the last 5 years, audio interviews I have conducted with top traders since 2005 and full length video interviews conducted for my documentary film over the course of 2007 and 2008. Those who have an interest can read more here. These trading events will initially only be in San Diego, CA.

Now that is spot on.

The author (old pro) of this, saw the comments for that post, and responded:

I really enjoyed some of the comments on my post. Some of the guys are right on. The manager I referred to is a very disciplined trend follower who has a rule based system he follows religiously. The losses took five weeks not two days. A large % of the losses were incurred via being short the financials which were in fact in clear and well defined downtrends prior to the so-called intervention. It is obvious from some of the comments that all contributors are not traders but rather observers and there is nothing wrong with that. But I will pass the comments along to my friend. He has averaged a net return of 24% per year the last five years following his rules.

From Gibbons Burke comes an oldie, but goodie about money management.

Kevin Bruce is one of the traders who appears in my documentary film. He is a great story.