Stocking Money Quotes

In a society in which nearly everybody is dominated by somebody else's mind or by a disembodied mind, it becomes increasingly difficult to learn the truth about the activities of governments and corporations, about the quality or value of products, or about the health of one's own place and economy. In such a society, also, our private economies will depend less and less upon the private ownership of real, usable property, and more and more upon property that is institutional and abstract, beyond individual control, such as money, insurance policies, certificates of deposit, stocks, and shares. And as our private economies become more abstract, the mutual, free helps and pleasures of family and community life will be supplanted by a kind of displaced or placeless citizenship and by commerce with impersonal and self-interested suppliers... Thus, although we are not slaves in name, and cannot be carried to market and sold as somebody else's legal chattels, we are free only within narrow limits. For all our talk about liberation and personal autonomy, there are few choices that we are free to make. What would be the point, for example, if a majority of our people decided to be self-employed? The great enemy of freedom is the alignment of political power with wealth. This alignment destroys the commonwealth - that is, the natural wealth of localities and the local economies of household, neighborhood, and community - and so destroys democracy, of which the commonwealth is the foundation and practical means.

The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.

People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.

Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little.

Bob Dole revealed he is one of the test subjects for Viagra. He said on Larry King, 'I wish I had bought stock in it.' Only a Republican would think the best part of Viagra is the fact that you could make money off of it.

You may think this is a waste of money, but reducing your stock and relieving yourself of the burden of excess is the quickest and most effective way to put your things in order.

There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn!

Ultimately, Investing is about holistic ROI. It’s not about just owning stocks or crypto or flipping for quick income. When we talk about holistic ROI, we are looking at our long term profit, short term profit, income security, cash flow, social impact, environmental impact, spiritual impact, stability of the permaculture economy, and more. That’s how we see it at Mayflower-Plymouth.

The stock market is a financial redistribution system. It takes money away from those who have no patience and gives it to those who have.” — Warren Buffet

If you can follow only one bit of data, follow the earnings—assuming the company in question has earnings. As you’ll see in this text, I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.

And back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England. Sensing that the market was getting out of hand, the great physicist muttered that he “could calculate the motions of the heavenly bodies, but not the madness of the people.” Newton dumped his South Sea shares, pocketing a 100% profit totaling £7,000. But just months later, swept up in the wild enthusiasm of the market, Newton jumped back in at a much higher price—and lost £20,000 (or more than $3 million in today’s money). For the rest of his life, he forbade anyone to speak the words “South Sea” in his presence. 4

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum.

Money in a broker’s account or in a bank account is not the same as if you feel it in your own fingers once in a while. Then it means something.

Money is just something you need in case you do not die tomorrow. Let this is a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness... Paradoxically (and as an unintended consequence) your trading performance will improve significantly.

The sucker has always tried to get something for nothing, and the appeal in all booms is always frankly to the gambling instinct aroused by cupidity and spurred by a pervasive prosperity. People who look for easy money invariably pay for the privilege of proving conclusively that it cannot be found on this sordid earth.

Investing isn’t a game - It has a substantive impact on the living of life and the development of civilization. It’s not just about stock tickers and opening bells and timing buys and sells to get a quick profit in the gap…. It effects when and where houses are built, the quality of schools, the accessibility of organic food, the price of solar relative to gasoline…. Investments direct the development of civilization.

In the square below,’ said the Happy Prince, ‘there stands a little match-girl. She has let her matches fall in the gutter, and they are all spoiled. Her father will beat her if she does not bring home some money, and she is crying. She has no shoes or stockings, and her little head is bare. Pluck out my other eye, and give it to her, and her father will not beat her.’ ‘I will stay with you one night longer,’ said the Swallow, ‘but I cannot pluck out your eye. You would be quite blind then.’ ‘Swallow, Swallow, little Swallow,’ said the Prince, ‘do as I command you.’ So he plucked out the Prince’s other eye, and darted down with it. He swooped past the match-girl, and slipped the jewel into the palm of her hand. ‘What a lovely bit of glass,’ cried the little girl; and she ran home, laughing. Then the Swallow came back to the Prince. ‘You are blind now,’ he said, ‘so I will stay with you always.

Please sell $10,000 worth of stock — we have decided to lead a mad and extravagant life.

Never invest in stocks with borrowed money or a faint heart. Both are fatal

To compound your money, and not your mistakes, your goal is to buy on the way up—not on the way down.

Stocks you trade, it's wives you're stuck with.

Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.)

I don’t own any stocks or bonds. All my money is tied up in debt.

The stock market is a device for transferring money from the impatient to the patient.

Wall Street never changes. The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes

No man can always have adequate reasons for buying or selling stocks daily - or sufficient knowledge to make his play an intelligent play.

Speculators buy the trend; investors are in for the long haul; "they are a different breed of cats." One reason that people lose money today is that they have lost sight of this distinction; they profess to have the long term in mind and yet cannot resist following where the hot money has led.

It takes remarkable patience to hold on to a stock in a company that excites you, but which everybody else seems to ignore. You begin to think everybody else is right and you are wrong. But where the fundamentals are promising, patience is often rewarded—Lukens stock went up sixfold in the fifteenth year, American Greetings was a sixbagger in six years, Angelica a sevenbagger in four, Brunswick a sixbagger in five, and SmithKline a threebagger in two.

With small companies, my investment strategy is to be out of the stock in a year. My real estate strategy, on the other hand, is to start small and keep trading the properties up for bigger properties and, therefore, delaying paying taxes on the gain. This allows the value to increase dramatically. I generally hold real estate less than seven years.

Losses are necessary, as long as they are associated with a technique to help you learn from them

Nearly every time I strayed from the herd, I've made a lot of money. Wandering away from the action is the way to find the new action.

The stock is selling at a p/e of 30, while the most optimistic projections of earnings growth are 15–20 percent for the next two years.

The moral of the story is: never argue with the market. Your health and peace of mind are always more important than any stock.

When you were making excuses someone else was making enterprise.

Money does not give a trader more comfort, because, rich or poor, he can make mistakes and it is never comfortable to be wrong.

No, sir, nobody can make big money on what someone else tells him to do.

if there was any easy money lying around, no one would be forcing it into your pocket.

Here are some pointers from this section: • Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.) • By putting your stocks into categories you’ll have a better idea of what to expect from them.

What happened was, I got the idea in my head-and I could not get it out ㅡ that college was just one more dopey, inane place in the world dedicated to piling up treasure on earth and everything. I mean treasure is treasure, for heaven's sake. What's the difference whether the treasure is money, or property, or even culture, or even just plain knowledge? It all seemed like exactly the same thing to me, if you take off the wrapping ㅡ and it still does! Sometimes I think that knowledge ㅡ when it's knowledge for knowledge's sake, anyway ㅡ is the worst of all. The least excusable, certainly. [...] I don't think it would have all got me quite so down if just once in a while ㅡ just once in a while ㅡ there was at least some polite little perfunctory implication that knowledge should lead to wisdom, and that if it doesn't, it's just a disgusting waste of time! But there never is! You never even hear any hints dropped on a campus that wisdom is supposed to be the goal of knowledge. You hardly ever even hear the word 'wisdom' mentioned! Do you want to hear something funny? Do you want to hear something really funny? In almost four years of college ㅡ and this is the absolute truth ㅡ in almost four years of college, the only time I can remember ever even hearing the expression 'wise man' being used was in my freshman year, in Political Science! And you know how it was used? It was used in reference to some nice old poopy elder statesman who'd made a fortune in the stock market and then gone to Washington to be an adviser to President Roosevelt. Honestly, now! Four years of college, almost! I'm not saying that happens to everybody, but I just get so upset when I think about it I could die.

Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.

If you keep a $495 car payment throughout your life, which is “normal,” you miss the opportunity to save that money. If you invested $495 per month from age twenty-five to age sixty-five, a normal working lifetime, in the average mutual fund averaging 12 percent (the eighty-year stock market average), you would have $5,881,799.14 at age sixty-five. Hope you like the car!

So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.

A great stock, though with small profits, generally increases faster than a small stock with great profits. Money, says the proverb, makes money. When you have a little, it is often easier to get more. The great difficulty is to get that little.

The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.

Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments. • Look for companies with niches. • When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt. • Companies that have no debt can’t go bankrupt. • Managerial ability may be important, but it’s quite difficult to assess. Base your purchases on the company’s prospects, not on the president’s resume or speaking ability. • A lot of money can be made when a troubled company turns around. • Carefully consider the price-earnings ratio. If the stock is grossly overpriced, even if everything else goes right, you won’t make any money. • Find a story line to follow as a way of monitoring a company’s progress. • Look for companies that consistently buy back their own shares.

It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine--that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.

Christian communities arising from celebration do not want their lives changed, because their lives are in a good place. Tax rates should remain low. Home prices and stocks should continue to rise unabated, while interest rates should remain low to borrow more money to feed a lifestyle to which they have become accustomed.

It’s hard to make money working; and the harder the work, the worse the pay. It takes effort not to lose everything and end up on the street. It’s easy, on the other hand, to get rich without producing anything, moving money from one place to another, speculating, taking advantage of stock opportunities, investing in the hard work of others.

The electronic age has broadened the horizons of magical fraud to an astonishing degree. Faerie gold can be used for more than just party tricks; it works pretty well on the stock market, for example, where money's an illusion anyway.

It is not real estate, gold, stocks, hard work, or money that makes you rich; it is what you know about real estate, gold, stocks, hard work, and money that makes you rich. Ultimately, it is your financial intelligence that makes you rich.

Your money habits and investment strategy is not all about what you do, but much about who you are. Become the person it takes to do, succeed, and innovate.

Not money, Not skills, but Time is the biggest lever for massive wealth creation

Starting in 1792 with George Washington, there were financial crises every ten to fifteen years. Panics, bank runs, credit freezes, crashes, depressions. People lost their farms, families were wiped out. This went on for more than a hundred years, until the Great Depression, when Oklahoma turned to dust. "We can do better than this." Americans said. "We don't need to go back to the boom-and-bust cycle." The Great Depression produced three regulations: The FDIC-your bank deposits were safe. Glass-Steagall-banks couldn't go crazy with your money. The SEC-stock markets would be tightly controlled. For fifty years, these rules kept America from having another financial crisis. Not one panic or meltdown or freeze. They gave Americans security and prosperity. Banking was dull. The country produced the greatest middle class the world had ever seen.

In the conditions of this “New World Order,” a crucial part of the contemporary world economy is a criminal economy, in which the excess profits are accumulated not by the production of material comforts, but by drug-traffic, arms trafficking, and human trafficking, including prostitution. The contemporary world economy is an economy of the global organized criminality whose eminently form is the modern capitalist state. The contemporary world economy is an economy not of the real commodity production, but an economy of the jobbery; this is expressed directly in supply and demand of the capital of the speculation, i.e., in the fictitious capital trade, in the antagonistic games with share capital in the stock exchange. Just Wall Street’s stock exchange, i.e., the world speculative capital market, is the contemporary tremendous pump for inflation of the balloons of the world economic crises, the last one of which began in 2007. The aggregate amount of the bonds on the world market, as many economists know, is over one hundred trillion US dollars! Without taking in mind the derivatives! If including those, the aggregate amount is several times more! This is an enormous balloon as inflated as a red giant star! And when added to this amount the world market of the shares, the passing each other between real and fictitious capital grows to cosmic dimensions! This cosmic balloon will burst very soon! That means the most destructive capitalist crisis in human history lies just round the corner, the global economic apocalypse is just forthcoming! This ruin will be due to the stock exchange antagonistic games, the stock exchange that is, as a matter of fact, a gambling house! Because the securities and shares’ trading is sheer gambling! This becomes clear by the direct proportionality between risk and profitability, the more risk—the more profitability, and vice versa! However, this is gambling in which the stakes are not simply money, but millions and billions of human fates. So, this is a destroying-the-civilization-world crime economy!

The scary thing is that the more open our markets get, the faster people can move their money around and the more trading is based on this kind of speculation instead of serious analysis. And that’s scary because—recall—the whole point of the stock market is to decide the crucial question of what we, as a society, should build for the future. As Keynes says, “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.

Entrepreneurship is when an individual retrieves a red hot idea from the creativity furnace without the constraint of the heat of lean resources, and with each persistent blow of the innovation hammer shapes the still malleable idea against the anvil of passion, vision, insight, strategy, and principles to forge a fitting vessel of a creative concern.

Instead of rushing to the stock market like their dot-com predecessors had in the late 1990s, the unicorns were able to raise staggering amounts of money privately and thus avoid the close scrutiny that came with going public.

Everybody who really makes money at some point owns a piece of a product, a business, or some IP. That can be through stock options if you work at a tech company. That’s a fine way to start. But usually, the real wealth is created by starting your own companies or even by investing. In an investment firm, they’re buying equity. These are the routes to wealth. It doesn’t come through the hours.

You remind me at this moment,” said the young lady, resuming her lively and indifferent manner, “of the fairy tale, where the man finds all the money which he had carried to market suddenly changed into pieces of slate. I have cried down and ruined your whole stock of complimentary discourse by one unlucky observation.

He had always believed that his father had not been able to save a penny from the business, at least his father had never told him anything to the contrary, and Gregor, for his part, had never asked him any questions. In those days Gregor's sole concern had been to do everything in his power to make the family forget as quickly as possible the business disaster which had plunged everyone into a state of total despair. And so he had begun to work with special ardor and had risen almost overnight from stock clerk to traveling salesman, which of course had opened up very different money-making possibilities, and in no time his successes on the job were transformed, by means of commissions, into hard cash that could be plunked down on the table at home in front of his astonished and delighted family. Those had been the wonderful times, and they had never returned, at least not with the same glory, although later on Gregor earned enough money to meet the expenses of the entire family and actually did so. They had just gotten used to it, the family as well as Gregor, the money was received with thanks and given with pleasure, but no special feeling of warmth went with it any more.

If you find a stock with little or no institutional ownership, you’ve found a potential winner. Find a company that no analyst has ever visited, or that no analyst would admit to knowing about, and you’ve got a double winner. When I talk to a company that tells me the last analyst showed up three years ago, I can hardly contain my enthusiasm. It frequently happens with banks, savings-and-loans, and insurance companies, since there are thousands of these and Wall Street only keeps up with fifty to one hundred.

Wisdom is really the key to wealth. With great wisdom, comes great wealth and success. Rather than pursuing wealth, pursue wisdom. The aggressive pursuit of wealth can lead to disappointment. Wisdom is defined as the quality of having experience, and being able to discern or judge what is true, right, or lasting. Wisdom is basically the practical application of knowledge. Rich people have small TVs and big libraries, and poor people have small libraries and big TVs. Become completely focused on one subject and study the subject for a long period of time. Don't skip around from one subject to the next. The problem is generally not money. Jesus taught that the problem was attachment to possessions and dependence on money rather than dependence on God. Those who love people, acquire wealth so they can give generously. After all, money feeds, shelters, and clothes people. They key is to work extremely hard for a short period of time (1-5 years), create abundant wealth, and then make money work hard for you through wise investments that yield a passive income for life. Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand. Failure is success if we learn from it. Continuing failure eventually leads to success. Those who dare to fail miserably can achieve greatly. Whenever you pursue a goal, it should be with complete focus. This means no interruptions. Only when one loves his career and is skilled at it can he truly succeed. Never rush into an investment without prior research and deliberation. With preferred shares, investors are guaranteed a dividend forever, while common stocks have variable dividends. Some regions with very low or no income taxes include the following: Nevada, Texas, Wyoming, Delaware, South Dakota, Cyprus, Liechtenstein, Luxembourg, Panama, San Marino, Seychelles, Isle of Man, Channel Islands, Curaçao, Bahamas, British Virgin Islands, Brunei, Monaco, Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Bermuda, Kuwait, Oman, Andorra, Cayman Islands, Belize, Vanuatu, and Campione d'Italia. There is only one God who is infinite and supreme above all things. Do not replace that infinite one with finite idols. As frustrated as you may feel due to your life circumstances, do not vent it by cursing God or unnecessarily uttering his name. Greed leads to poverty. Greed inclines people to act impulsively in hopes of gaining more. The benefit of giving to the poor is so great that a beggar is actually doing the giver a favor by allowing the person to give. The more I give away, the more that comes back. Earn as much as you can. Save as much as you can. Invest as much as you can. Give as much as you can.

On Rachel's show for November 7, 2012: We're not going to have a supreme court that will overturn Roe versus Wade. There will be no more Antonio Scalias and Samuel Aleatos added to this court. We're not going to repeal health reform. Nobody is going to kill medicare and make old people in this generation or any other generation fight it out on the open market to try to get health insurance. We are not going to do that. We are not going to give a 20% tax cut to millionaires and billionaires and expect programs like food stamps and kid's insurance to cover the cost of that tax cut. We'll not make you clear it with your boss if you want to get birth control under the insurance plan that you're on. We are not going to redefine rape. We are not going to amend the United States constitution to stop gay people from getting married. We are not going to double Guantanamo. We are not eliminating the Department of Energy or the Department of Education or Housing at the federal level. We are not going to spend $2 trillion on the military that the military does not want. We are not scaling back on student loans because the country's new plan is that you should borrow money from your parents. We are not vetoing the Dream Act. We are not self-deporting. We are not letting Detroit go bankrupt. We are not starting a trade war with China on Inauguration Day in January. We are not going to have, as a president, a man who once led a mob of friends to run down a scared, gay kid, to hold him down and forcibly cut his hair off with a pair of scissors while that kid cried and screamed for help and there was no apology, not ever. We are not going to have a Secretary of State John Bolton. We are not bringing Dick Cheney back. We are not going to have a foreign policy shop stocked with architects of the Iraq War. We are not going to do it. We had the chance to do that if we wanted to do that, as a country. and we said no, last night, loudly.

In America the quirk was that people were things. Best to cut your losses on an old man who won’t survive a trip across the ocean. A young buck from strong tribal stock got customers into a froth. A slave girl squeezing out pups was like a mint, money that bred money. If you were a thing—a cart or a horse or a slave—your value determined your possibilities.

No,” said a third student. “Novartis is a public company. It’s not the boss or the board who decides. It’s the shareholders. If the board changes its priorities the shareholders will just elect a new board.” “That’s right,” I said. “It’s the shareholders who want this company to spend their money on researching rich people’s illnesses. That’s how they get a good return on their shares.” So there’s nothing wrong with the employees, the boss, or the board, then. “Now, the question is”—I looked at the student who had first suggested the face punching—“who owns the shares in these big pharmaceutical companies?” “Well, it’s the rich.” He shrugged. “No. It’s actually interesting because pharmaceutical shares are very stable. When the stock market goes up and down, or oil prices go up and down, pharma shares keep giving a pretty steady return. Many other kinds of companies’ shares follow the economy—they do better or worse as people go on spending sprees or cut back—but the cancer patients always need treatment. So who owns the shares in these stable companies?” My young audience looked back at me, their faces like one big question mark. “It’s retirement funds.” Silence. “So maybe I don’t have to do any punching, because I will not meet the shareholders. But you will. This weekend, go visit your grandma and punch her in the face. If you feel you need someone to blame and punish, it’s the seniors and their greedy need for stable stocks.

People like you and me are the problem, don’t you get that? We always defend ourselves by saying we’re only offering a service. That we’re just one tiny part of the market. That everything is people’s own fault. That they’re greedy, that they shouldn’t have given us their money. And then we have the nerve to wonder why stock markets crash and the city is full of rats…

Peter Lynch doesn’t advise you to buy stock in your favorite store just because you like shopping in the store, nor should you buy stock in a manufacturer because it makes your favorite product or a restaurant because you like the food. Liking a store, a product, or a restaurant is a good reason to get interested in a company and put it on your research list, but it’s not enough of a reason to own the stock! Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, plans for expansion, and so forth.

Making money in the markets is tough. The brilliant trader and investor Bernard Baruch put it well when he said, “If you are ready to give up everything else and study the whole history and background of the market and all principal companies whose stocks are on the board as carefully as a medical student studies anatomy—if you can do all that and in addition you have the cool nerves of a gambler, the sixth sense of a clairvoyant and the courage of a lion, you have a ghost of a chance.

This malignant persistence since September 11th is the biggest surprise of all. In previous decades, sneak attacks, stock-market crashes, and other great crises became hinges on which American history swung in dramatically new directions. But events on the same scale, or nearly so, no longer seem to have that power; moneyed interests may have become too entrenched, elites too self-seeking, institutions too feeble, and the public too polarized and passive for the country to be shocked into fundamental change.

Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook. More than that, some speculation is necessary and unavoidable, for in many common-stock situations there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone.* There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.

In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks. … Just as the boom accelerated the rate of growth, so the crash enormously advanced the rate of discovery. Within a few days, something close to a universal trust turned into something akin to universal suspicion. Audits were ordered. Strained or preoccupied behavior was noticed. Most important, the collapse in stock values made irredeemable the position of the employee who had embezzled to play the market. He now confessed.

(Jefferson) was deeply suspicious of Hamilton's assumption plan (by which the nation would assume responsibility for the states' individual war debts.) He feared this was yet another example of the avaricious hand of the unscrupulous money powers, the sprawling, hydra-headed creature associated with banks, stock markets and devious speculators, especially in New York, Boston, and the City of London, not to mention unrepublican, unAmerican attitudes of all kinds - everything he despised.

But do you know what happened during this period? Where do we begin ... 1.3 million Americans died while fighting nine major wars. Roughly 99.9% of all companies that were created went out of business. Four U.S. presidents were assassinated. 675,000 Americans died in a single year from a flu pandemic. 30 separate natural disasters killed at least 400 Americans each. 33 recessions lasted a cumulative 48 years. The number of forecasters who predicted any of those recessions rounds to zero. The stock market fell more than 10% from a recent high at least 102 times. Stocks lost a third of their value at least 12 times. Annual inflation exceeded 7% in 20 separate years. The words “economic pessimism” appeared in newspapers at least 29,000 times, according to Google.

A 10% loss in any investment can be recovered, not by 10%, but only by 11% gain. A 50% loss in any investment can be recovered only by 100% gain. And a 90% loss in any investment can be recovered only by a whopping 1,000% gain. Yes, all the above statements are true. Numbers can confuse the best of financial wizards. It needs a rare trait of common sense to unravel the mysteries of finance. For your investments: - Keep them Simple. - Avoid Jargons. - Exhibit Discipline. - Be Consistent. - Apply Common Sense

Capitalism is a bad idea. Imagine if we start a society on an uninhabited tropical island, and I propose that the people who do all the work will be paid as little as possible while the people who don’t do anything but own stocks will have more money than they could possibly spend in their lifetimes. You would all be looking at each other and shaking your heads. “Wait, wait, hear me out,” I might say. “We’ll also treat air, water, plants, minerals, and other animals as objects to be exploited even more ruthlessly than workers!” Now you’d slowly back away because there’s obviously something not right with me, even as I continue on: “Wait, don’t go! We can maintain peace by creating massively destructive weapons and violent prisons. Why is everybody leaving?

The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell. It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because this may involve a long wait, very likely the loss of income, and the possible missing of investment opportunities. On the whole it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value. If he wants to be shrewd he can look for the ever-present bargain opportunities in individual securities. Aside from forecasting the movements of the general market, much effort and ability are directed on Wall Street toward selecting stocks or industrial groups that in matter of price will “do better” than the rest over a fairly short period in the future. Logical as this endeavor may seem, we do not believe it is suited to the needs or temperament of the true investor—particularly since he would be competing with a large number of stock-market traders and first-class financial analysts who are trying to do the same thing. As in all other activities that emphasize price movements first and underlying values second, the work of many intelligent minds constantly engaged in this field tends to be self-neutralizing and self-defeating over the years. The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read more simply: “Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.” An

What imperialists actually wanted was expansion of political power without the foundation of the body politic. Imperialist expansion had been touched off by a curious kind of economic crisis, the overproduction of capital and the emergence of "superfluous" money, the result of oversaving, which could no longer find productive investment within national borders. For the first time, investment of power did not pave the way for investment of money, since uncontrollable investments in distant countries threatened to transform large strata of society into gamblers, to change the whole capitalist economy from a system of production to a system of financial speculation, and to replace the profits of production with profits in commissions. The decade immediately before the imperialist era, the seventies of the last century, witnessed an unparalleled increase in swindles, financial scandals, and gambling in the stock market.

Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S.-caused inflation through subsidies, tariffs and capital controls; the currency war is expanding fast.

The speculator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you you hope that every day will be the last day and you lose more than you should had you not listened to hope to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.

After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.

However, as the consequences of Black Thursday began to settle in investors’ minds, most people attempted to recover their losses and the dramatic selling began again. On Tuesday 29 October, the day of the Wall Street Crash, more than 16 million shares were dumped in an afternoon of trading. On that one single day, as much money was lost on the New York stock exchange as had been spent in its entirety by the US government on fighting the First World War. It was a disaster. Annette

Among us English-speaking peoples especially do the praises of poverty need once more to be boldly sung. We have grown literally afraid to be poor. We despise any one who elects to be poor in order to simplify and save his inner life. If he does not join the general scramble and pant with the money-making street, we deem him spiritless and lacking in ambition. We have lost the power even of imagining what the ancient idealization of poverty could have meant: the liberation from material attachments, the unbribed soul, the manlier indifference, the paying our way by what we are or do and not by what we have, the right to fling away our life at any moment irresponsibly—the more athletic trim, in short, the moral fighting shape. When we of the so-called better classes are scared as men were never scared in history at material ugliness and hardship; when we put off marriage until our house can be artistic, and quake at the thought of having a child without a bank-account and doomed to manual labor, it is time for thinking men to protest against so unmanly and irreligious a state of opinion. It is true that so far as wealth gives time for ideal ends and exercise to ideal energies, wealth is better than poverty and ought to be chosen. But wealth does this in only a portion of the actual cases. Elsewhere the desire to gain wealth and the fear to lose it are our chief breeders of cowardice and propagators of corruption. There are thousands of conjunctures in which a wealth-bound man must be a slave, whilst a man for whom poverty has no terrors becomes a freeman. Think of the strength which personal indifference to poverty would give us if we were devoted to unpopular causes. We need no longer hold our tongues or fear to vote the revolutionary or reformatory ticket. Our stocks might fall, our hopes of promotion vanish, our salaries stop, our club doors close in our faces; yet, while we lived, we would imperturbably bear witness to the spirit, and our example would help to set free our generation. The cause would need its funds, but we its servants would be potent in proportion as we personally were contented with our poverty. I recommend this matter to your serious pondering, for it is certain that the prevalent fear of poverty among the educated classes is the worst moral disease from which our civilization suffers.

Birthdays are a time when one stock takes, which means, I suppose, a good spineless mope: I scan my horizon and can discern no sail of hope along my own particular ambition. I tell you what it is: I'm quite in accord with the people who enquire 'What is the matter with the man?' because I don't seem to be producing anything as the years pass but rank self indulgence. You know that my sole ambition, officially at any rate, was to write poems & novels, an activity I never found any difficulty fulfilling between the (dangerous) ages of 17-24: I can't very well ignore the fact that this seems to have died a natural death. On the other hand I feel regretful that what talents I have in this direction are not being used. Then again, if I am not going to produce anything in the literary line, the justification for my selfish life is removed - but since I go on living it, the suspicion arises that the writing existed to produce the life, & not vice versa. And as a life it has very little to recommend it: I spend my days footling in a job I care nothing about, a curate among lady-clerks; I evade all responsibility, familial, professional, emotional, social, not even saving much money or helping my mother. I look around me & I see people getting on, or doing things, or bringing up children - and here I am in a kind of vacuum. If I were writing, I would even risk the fearful old age of the Henry-James hero: not fearful in circumstance but in realisation: because to me to catch, render, preserve, pickle, distil or otherwise secure life-as-it-seemed for the future seems to me infinitely worth doing; but as I'm not the entire morality of it collapses. And when I ask why I'm not, well, I'm not because I don't want to: every novel I attempt stops at a point where I awake from the impulse as one might awake from a particularly-sickening nightmare - I don't want to 'create character', I don't want to be vivid or memorable or precise, I neither wish to bathe each scene in the lambency of the 'love that accepts' or be excoriatingly cruel, smart, vicious, 'penetrating' (ugh), or any of the other recoil qualities. In fact, like the man in St Mawr, I want nothing. Nothing, I want. And so it becomes quite impossible for me to carry on. This failure of impulse seems to me suspiciously like a failure of sexual impulse: people conceive novels and dash away at them & finish them in the same way as they fall in love & will not be satisfied till they're married - another point on which I seem to be out of step. There's something cold & heavy sitting on me somewhere, & until something budges it I am no good.

The worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to insure that as few people as possible escape the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited for volume of trading to return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next 24 months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.

So we ran the experiment. For a period of time, in our control groups of Googlers, people who were nominated for cash awards continued to receive them. In our experimental groups, nominated winners received trips, team parties, and gifts of the same value as the cash awards they would have received. Instead of making public stock awards, we sent teams to Hawaii. Instead of smaller awards, we provided trips to health resorts, blowout team dinners, or Google TVs for the home. The result was astounding. Despite telling us they would prefer cash over experiences, the experimental group was happier. Much happier. They thought their awards were 28 percent more fun, 28 percent more memorable, and 15 percent more thoughtful. This was true whether the experience was a team trip to Disneyland (it turns out most adults are still kids on the inside) or individual vouchers to do something on their own. And they stayed happier for a longer period of time than Googlers who received money. When resurveyed five months later, the cash recipients’ levels of happiness with their awards had dropped by about 25 percent. The experimental group was even happier about the award than when they received it. The joy of money is fleeting, but memories last forever.

But money doesn’t work in the sense that labor or tangible capital expends effort to produce commodities. Credit is debt, and debt extracts interest. Financial salesmen who promise investors, “Make your money work for you” actually mean that society should work for the creditors — and that means for the banks that create credit. The effect is to turn the economic surplus into a flow of interest payments, diverting revenue from tangible capital investment. As the economy’s reproductive powers are dried up, the financialization process is kept going by easing credit terms and lending — not to produce more goods and services, but to bid up prices for the real estate, stocks and bonds being pledged as collateral for larger and larger loans.

What is weak, emphasize as strong. Not sure how to pronounce a word? Then say it loudly with confidence. If technology is outdated, the company board of directors will spend fortunes advertising that their products are the newest and best. To finance the lies, the board will fire a third of the employees, making stock prices go up. Then, before customers disconnect and go to competitors, the company will have made enough money on its lies to buy a startup company with new technology. But, of course, the new technology should not be a backdoor for thieves.

The basic principle of structural analysis, I was explaining, is that the terms of a symbolic system do not stand in isolation—they are not to be thought of in terms of what they 'stand for,' but are defined by their relations to each other. One has to first define the field, and then look for elements in that field that are systematic inversions of each other. Take vampires. First you place them: vampires are stock figures in American horror movies. American horror movies constitute a kind of cosmology, a universe unto themselves. Then you ask: what, within this cosmos, is the opposite of a vampire? The answer is obvious. The opposite of a vampire is a werewolf. On one level they are the same: they are both monsters that can bite you and, biting you, turn you, too, into one of their own kind. In most other ways each is an exact inversion of the other. Vampires are rich. They are typically aristocrats. Werewolves are always poor. Vampires are fixed in space: they have castles or crypts that they have to retreat to during the daytime; werewolves are usually homeless derelicts, travelers, or otherwise on the run. Vampires control other creatures (bats, wolves, humans that they hypnotize or render thralls). Werewolves can't control themselves. Yet—and this is really the clincher in this case—each can be destroyed only by its own negation: vampires, by a stake, a simple sharpened stick that peasants use to construct fences; werewolves, by a silver bullet, something literally made from money.

J. P. Morgan tells the story of how he would get his shoes shined every Wednesday at the same shop around the corner from his office. One day the shoe shine attendant asked him if he and his friends could buy some stock through Morgan’s brokerage. The three friends had about $40—a lot of money in 1929. Morgan politely refused, hurried back to his office, and ordered that his company was not to have a single share of stock on its books by the end of the day. Morgan simply asked, “If the shoe shine boys are buying stocks, who else is left?” Of course, the 1929 stock market crash was only a few days away, and Morgan looked like a genius. He was not a genius; he noted that the order flow was likely running out on the buy side. It wasn’t his army of analysts that showed him that. It was a public investor.

What Greenspan was saying, in other words, was that there was absolutely nothing wrong with bidding up to $100 million in share value some hot-air Internet stock, because the lack of that company’s “physical value” (i.e., the actual money those three employees weren’t earning) could be overcome by the inherent value of their “ideas.” To say that this was a radical reinterpretation of the entire science of economics is an understatement—economists had never dared measure “value” except in terms of actual concrete production. It was equivalent to a chemist saying that concrete becomes gold when you paint it yellow. It was lunacy.

Many historians, many sociologists and psychologists have written at lenght, and with deep concern, about the price that Western man has had to pay and will go on paying for technological progress. They point out, for example, that democracy can be hardly expected to flourish in societies where political and economic power is being progressively concentrated and centralized.But the progress of technology has led and is still leading to just such a concentration and centralisation of power. As the machinery of mass production is made more efficient it tends to become more complex and more expensive - and so less available to the eterpriser of limited means. Moreover, mass production cannot work without mass distribution; but mass distribution raises problems which only the largest producers can satisfactorily solve. In a world of mass production and mass distribution the Little Man, with his inadequate stock of working capital, is at a grave disadvantage. In competition with Big Man, he loses his money and finally his very existence as an independent producer; the Big Man has grobbled him up. As the Little Men disappear, more and more economic power comes to be wielded by fewer and fewer people. Under a dictatorship the Big Business, made possible by advancing technology and the consequent ruin of Little Business, is controlled by the State - that is to say, by small group of party leaders and soldiers, policemen and civil servants who carry out their orders.

The problem with fiat is that simply maintaining the wealth you already own requires significant active management and expert decision-making. You need to develop expertise in portfolio allocation, risk management, stock and bond valuation, real estate markets, credit markets, global macro trends, national and international monetary policy, commodity markets, geopolitics, and many other arcane and highly specialized fields in order to make informed investment decisions that allow you to maintain the wealth you already earned. You effectively need to earn your money twice with fiat, once when you work for it, and once when you invest it to beat inflation. The simple gold coin saved you from all of this before fiat.

It is not by means of a metaphor that a banking or stock-market transaction, a claim, a coupon, a credit, is able to arouse people who are not necessarily bankers. And what about the effects of money that grows, money that produces more money? There are socioeconomic "complexes" that are also veritable complexes of the unconscious, and that communicate a voluptuous wave from the top to the bottom of their hierarchy (the military-industrial complex). And ideology, Oedipus, and the phallus have nothing to do with this, because they depend on it rather than being its impetus. For it is a matter of flows, of stocks, of breaks in and fluctuations of flows; desire is present wherever something flows and runs, carrying along with it interested subjects—but also drunken or slumbering subjects—toward lethal destinations.

Profit is so very fluctuating that the person who carries on a particular trade cannot always tell you himself what is the average of his annual profit. It is affected not only by every variation of price in the commodities which he deals in, but by the good or bad fortune both of his rivals and of his customers, and by a thousand other accidents to which goods when carried either by sea or by land, or even when stored in a warehouse, are liable. It varies, therefore, not only from year to year, but from day to day, and almost from hour to hour. To ascertain what is the average profit of all the different trades carried on in a great kingdom must be much more difficult; and to judge of what it may have been formerly, or in remote periods of time, with any degree of precision, must be altogether impossible. But though it may be impossible to determine, with any degree of precision, what are or were the average profits of stock, either in the present or in ancient times, some notion may be formed of them from the interest of money. It may be laid down as a maxim, that wherever a great deal can be made by the use of money, a great deal will commonly be given for the use of it; and that wherever little can be made by it, less will commonly be given for it. According, therefore, as the usual market rate of interest varies in any country, we may be assured that the ordinary profits of stock must vary with it, must sink as it sinks, and rise as it rises. The progress of interest, therefore, may lead us to form some notion of the progress of profit.

I had heard an amazing story that supported what the Archbishop was saying. When I met James Doty, he was the founder and director of the Center of Compassion and Altruism Research and Education at Stanford and the chairman of the Dalai Lama Foundation. Jim also worked as a full-time neurosurgeon. Years earlier, he had made a fortune as a medical technology entrepreneur and had pledged stock worth $30 million to charity. At the time his net worth was over $75 million. However, when the stock market crashed, he lost everything and discovered that he was bankrupt. All he had left was the stock that he had pledged to charity. His lawyers told him that he could get out of his charitable contributions and that everyone would understand that his circumstances had changed. “One of the persistent myths in our society,” Jim explained, “is that money will make you happy. Growing up poor, I thought that money would give me everything I did not have: control, power, love. When I finally had all the money I had ever dreamed of, I discovered that it had not made me happy. And when I lost it all, all of my false friends disappeared.” Jim decided to go through with his contribution. “At that moment I realized that the only way that money can bring happiness is to give it away.” •

There was a man who was in Hell and about to be re-incarnated, and he said to the King of Re-incarnation, “If you want me to return to the earth as a human being, I will go only on my own conditions.” “And what are they?” asked the King. The man replied, “I must be born the son of a cabinet minister and father of a future ‘Literary Wrangler’ (the scholar who comes out first at the national examinations). I must have ten thousand acres of land surrounding my home and fish ponds and fruits of every kind and a beautiful wife and pretty concubines, all good and loving to me, and rooms stocked to the ceiling with gold and pearls and cellars stocked full of grain and trunks chockful of money, and I myself must be a Grand Councilor or a Duke of the First Rank and enjoy honor and prosperity and live until I am a hundred years old,” And the King of Re-incarnation replied, “If there was such a lot on earth, I would go and be re-incarnated myself, and not give it to you!

Don’t worry about me,” he said. “The little limp means nothing. People my age limp. A limp is a natural thing at a certain age. Forget the cough. It’s healthy to cough. You move the stuff around. The stuff can’t harm you as long as it doesn’t settle in one spot and stay there for years. So the cough’s all right. So is the insomnia. The insomnia’s all right. What do I gain by sleeping? You reach an age when every minute of sleep is one less minute to do useful things. To cough or limp. Never mind the women. The women are all right. We rent a cassette and have some sex. It pumps blood to the heart. Forget the cigarettes. I like to tell myself I’m getting away with something. Let the Mormons quit smoking. They’ll die of something just as bad. The money’s no problem. I’m all set incomewise. Zero pensions, zero savings, zero stocks and bonds. So you don’t have to worry about that. That’s all taken care of. Never mind the teeth. The teeth are all right. The looser they are, the more you can wobble them with your tongue. It gives the tongue something to do. Don’t worry about the shakes. Everybody gets the shakes now and then. It’s only the left hand anyway. The way to enjoy the shakes is pretend it’s somebody else’s hand. Never mind the sudden and unexplained weight loss. There’s no point eating what you can’t see. Don’t worry about the eyes. The eyes can’t get any worse than they are now. Forget the mind completely. The mind goes before the body. That’s the way it’s supposed to be. So don’t worry about the mind. The mind is all right. Worry about the car. The steering’s all awry. The brakes were recalled three times. The hood shoots up on pothole terrain.” Deadpan.

What Mr. Rothschild had discovered was the basic principle of power, influence, and control over people as applied to economics. That principle is "when you assume the appearance of power, people soon give it to you." Mr. Rothschild had discovered that currency or deposit loan accounts had the required appearance of power that could be used to INDUCE PEOPLE [WC emphasis] (inductance, with people corresponding to a magnetic field) into surrendering their real wealth in exchange for a promise of greater wealth (instead of real compensation). They would put up real collateral in exchange for a loan of promissory notes. Mr. Rothschild found that he could issue more notes than he had backing for, so long as he had someone's stock of gold as a persuader to show to his customers. Mr. Rothschild loaned his promissory notes to individuals and to governments. These would create overconfidence. Then he would make money scarce, tighten control of the system, and collect the collateral through the obligation of contracts. The cycle was then repeated. These pressures could be used to ignite a war. Then he would control the availability of currency to determine who would win the war. That government which agreed to give him control of its economic system got his support.

To the enormous majority of persons who risk themselves in literature, not even the smallest measure of success can fall. They had better take to some other profession as quickly as may be, they are only making a sure thing of disappointment, only crowding the narrow gates of fortune and fame. Yet there are others to whom success, though easily within their reach, does not seem a thing to be grasped at. Of two such, the pathetic story may be read, in the Memoir of A Scotch Probationer, Mr. Thomas Davidson, who died young, an unplaced Minister of the United Presbyterian Church, in 1869. He died young, unaccepted by the world, unheard of, uncomplaining, soon after writing his latest song on the first grey hairs of the lady whom he loved. And she, Miss Alison Dunlop, died also, a year ago, leaving a little work newly published, Anent Old Edinburgh, in which is briefly told the story of her life. There can hardly be a true tale more brave and honourable, for those two were eminently qualified to shine, with a clear and modest radiance, in letters. Both had a touch of poetry, Mr. Davidson left a few genuine poems, both had humour, knowledge, patience, industry, and literary conscientiousness. No success came to them, they did not even seek it, though it was easily within the reach of their powers. Yet none can call them failures, leaving, as they did, the fragrance of honourable and uncomplaining lives, and such brief records of these as to delight, and console and encourage us all. They bequeath to us the spectacle of a real triumph far beyond the petty gains of money or of applause, the spectacle of lives made happy by literature, unvexed by notoriety, unfretted by envy. What we call success could never have yielded them so much, for the ways of authorship are dusty and stony, and the stones are only too handy for throwing at the few that, deservedly or undeservedly, make a name, and therewith about one-tenth of the wealth which is ungrudged to physicians, or barristers, or stock-brokers, or dentists, or electricians. If literature and occupation with letters were not its own reward, truly they who seem to succeed might envy those who fail. It is not wealth that they win, as fortunate men in other professions count wealth; it is not rank nor fashion that come to their call nor come to call on them. Their success is to be let dwell with their own fancies, or with the imaginations of others far greater than themselves; their success is this living in fantasy, a little remote from the hubbub and the contests of the world. At the best they will be vexed by curious eyes and idle tongues, at the best they will die not rich in this world’s goods, yet not unconsoled by the friendships which they win among men and women whose faces they will never see. They may well be content, and thrice content, with their lot, yet it is not a lot which should provoke envy, nor be coveted by ambition.

Making money in the markets is tough. The brilliant trader and investor Bernard Baruch put it well when he said, “If you are ready to give up everything else and study the whole history and background of the market and all principal companies whose stocks are on the board as carefully as a medical student studies anatomy—if you can do all that and in addition you have the cool nerves of a gambler, the sixth sense of a clairvoyant and the courage of a lion, you have a ghost of a chance.” In retrospect, the mistakes that led to my crash seemed embarrassingly obvious. First, I had been wildly overconfident and had let my emotions get the better of me. I learned (again) that no matter how much I knew and how hard I worked, I could never be certain enough to proclaim things like what I’d said on Wall $ treet Week: “There’ll be no soft landing. I can say that with absolute certainty, because I know how markets work.” I am still shocked and embarrassed by how arrogant I was. Second, I again saw the value of studying history. What had happened, after all, was “another one of those.” I should have realized that debts denominated in one’s own currency can be successfully restructured with the government’s help, and that when central banks simultaneously provide stimulus (as they did in March 1932, at the low point of the Great Depression, and as they did again in 1982), inflation and deflation can be balanced against each other. As in 1971, I had failed to recognize the lessons of history. Realizing that led me to try to make sense of all movements in all major economies and markets going back a hundred years and to come up with carefully tested decision-making principles that are timeless and universal. Third, I was reminded of how difficult it is to time markets. My long-term estimates of equilibrium levels were not reliable enough to bet on; too many things could happen between the time I placed my bets and the time (if ever) that my estimates were reached. Staring at these failings, I realized that if I was going to move forward without a high likelihood of getting whacked again, I would have to look at myself objectively and change—starting by learning a better way of handling the natural aggressiveness I’ve always shown in going after what I wanted. Imagine that in order to have a great life you have to cross a dangerous jungle. You can stay safe where you are and have an ordinary life, or you can risk crossing the jungle to have a terrific life. How would you approach that choice? Take a moment to think about it because it is the sort of choice that, in one form or another, we all have to make.