Don’t read me wrong the economy is atrocious, but scaring the living shit out of people every day, day after day, while offering no solution except “government”, is perverse.

Michael, Jim Rogers video from the other day….
http://www.bloomberg.com/avp/avp.htm?N=video&T=Rogers%20Says%20Geithner%20Caused%20Crisis%2C%20Must%20Let%20Banks%20Fail%20&clipSRC=mms://media2.bloomberg.com/cache/v1yQTu2Ffw3w.asf

I’ve been on a media brake for a week now; no watching the news, no reading any news related material on the internet, and it feels so good. I agree…it’s pretty overwhelming following the media nowadays.

Reporting negative news is just more profitable then reporting positive news. Research has show that negative news segments cause more physiological arousal then positive new segments and negative feelings will outweigh positive ones. More atrocious and barbaric news segments generally lead to higher TV ratings thereby increasing adverting dollars I believe. Check out Ed Seykota (structure of the mind) on his Trading Tribe website to learn how information enters the mind can affect a persons trading judgment….

(WC)
http://www.psu.edu/dept/medialab/research/negnews.html
http://www.seykota.com/tribe/TT_Process/index.htm

Im right there with you. They need to turn off all the news stop reading everything that is related to the economy. All it does is put these people into deeper depression. Misery loves company. If they didn’t report negative news the ratings would fall though the roof.

“there is in fact a theory that does not need to be reworked, much less play catch-up for years. Elliott wave theory anticipates turns in psychology at several degrees of trend — and what’s unfolding now involves a very large degree of trend.

Put in the simplest terms, our collective psychology turned from positive to negative. That’s the theory. I hasten to add that the theory is sound and correct not because we say so, but because of the evidence — in other words, the theory becomes visible in practice.

Our application of the theory says this economic turn is larger than any living adult American has seen (unless you’re around 100), thus evidence for the theory should include large-scale economic events that nobody has seen before. Like what? Well, like a very large bear market in stocks plus a very large national decline in real estate values, that is happening at the same time.

There are other examples, but the simultaneous collapse in stock and real estate alone amounts to an epochal turn. It’s a crash in collective wealth.”

The problem with Elliott wave theory is it is “imprecise”. In bear markets the psychology will always fit into some large degree correction wave. U have to apply the theory yourself to realize that there are plenty of alternate wave counts. Currently we could be in a wave 1 of a very large degree wave 4 correction (this wave spanning centuries), or we could simply be in a cycle degree wave 4 spanning decades, where stocks will fluctuate between the recent highs and lows (or a bit lower) for a couple of decades. It is very easy to buy this theory when we are in so much negative psychology.

It works perfectly in back testing only. Too many alternate counts to give solid predictions.

The American people have every right to be afraid. This time the media may actually be serving a purpose. The American people are beginning to do the right thing in a crisis such as this: they are beginning to save & pay down debt. The banks are beginning to do the right thing they are tightening credit by raising qualifications and keeping interest rates high.
It is only our Government that is doing the wrong thing by trying to stimulate the economy artificially by using credit and the printing presses.
This crisis was caused by credit and may die by it and bring down the whole nation in the process.
We should know from history that asset bubbles can only be cured by time and belt tightening. Continuing to borrow will only turn the crisis into a catastrophe!!!
We have seen what that final catastrophe can bring; in Germany it brought hyperinflation and Hitler In the Soviet Union it brought down the government. The examples go on & on but the lesson is always the same; LIVE WITHIN YOUR MEANS whether you are an individual, a business or a government. It seems to me that we are jumping off the cliff into the abyss.