The Disposition Effect...

..what psychologists call the inability to confront financial losses.Thanks to Nanci, for this one.

I find it absolutely amazing that we as a nation still can't look at this market and realize it is a time for change in how our banks and markets operate and function. The G7 is meeting this weekend to solve our crisis. Be prepared for more pain.....Talks of another economic stimulus package are arising again. Did you see how that last stimulus package worked out for us?

This mess we are in is really just in it's infancy. Our capital markets are at historic lows and going lower. The dollar can't hold up to the yen or hell even the peso. Our elected public officials are so over their heads right now and corporate greed is still running ramped. Will it stop? Maybe...

Today we are a nation having to take a hard look at ourselves in the mirror. Do I like what I see? I do, but it really depends on which angle I am looking at in the mirror. On the bad side angle of the mirror I see a nation that is searching for guidance and direction. I speak to small and large investors daily and the common denominator of our conversations are that they don't know what to do with their investments. They are truly in in the grip of fear. They are truly acting out the the disposition effect. I also continue to see a federal government that is nationalizing banks and businesses, passing out stimulus packages and slowly turning our nation towards a socialist society.

On the good angle side of the mirror I see a nation that has the best and brightest minds. I see a nation that makes it happen. I see a strong nation. I see a nation that needs a kick in the ass. I see a nation that will will recover, learn from this colossal mistake and move forward. But all of this will come at a price. America will regain their confidence!

That price of our recovery will be painful. We will see a loss of jobs, small and big businesses and paper wealth will evaporate. Spending will change for the consumer and wealth will have to be rebuilt. Are these losses a bad thing? Not really. We will learn a valuable lesson from these failures. A new generation will be able to realize that we have to live within our means. We will have to make adjustments. We will have to do without and be happy.

A new market is being made now. This is truly historic for all of us. Embrace the change.