financial crisis

As a psychology student, one might always conclude that we understand the way the human mind reacts, the way our cognitive process is being deemed, the reactions and ways to counter is already mastered by us. We can have ample sets of theoretical solutions to different problems, and i can also tell you what are the different stages when we face with anxiety, fear, loss, grief, greed, etc. BUt is it essential to determine the way we react, it is the way discipline is learned after experiencing all these levels of gyrations not only bounded to the indice but our own mental indice.

One day our moods can swing from sudden outburst, to sudden breakdown if being affected by the environment, sentiments, people we care, loss of close ones, or destruction of wealth accumulated through many years of hardwork. I believe no one is prone from the effects of emotion guided behaviors and as mere mortals, even psychologist can only delay the process and induce insight into those that have already faced breakdown, or mental instabilities. Challenging an individual to face all their challenges in life with a clear mind is harder than climbing Mount. Everest. At least you go in a team to conquer the mountain, in reality u are alone, you have to look into your pockets, take care of ur self, look after people around u be considerate, understand the people you interact, be cautious with what comes out your mouth , think right, act right and lastly learn to release what is build up as stress or tension .

This is worst than your daily wall street trading, worst than being a computer, the information we take in with onli 10 % of brain power is more than what your basic desktop or laptop can receive at once before overloading and overheating itself. Human need to always look for some place as a guide, look for information and strategy to imitate for success. But when the situation is vague or ambiguous, or filled with uncertainty we only able to look for direction among the mist. Nobody wants to risk anything for nothing, if the assets are not priced right for the last time, we are going to see the markets react again, Lehmans swaps were priced fairly cheap but it was the volumne traded and the companies involved not making a sound that helped the markets recover, Libor rates slumped that day, markets were poured with liquidity, and EU, America government swear to flood the market to spark a bear rally.BEAR RALLy

Euro 1.35x i hope will hold, yen is still strong but short term plays are permissible, if euro strengthens i believe pound will follow through , if the sale of assets and Feds + treasury buying into banks equity we might see lending start and the second wave of dollar collapse

Either way we are at crossroads to allow assets to deflate, or allow hyperinflation to occur and inflate the dollar, debase the value but push equity up thru illusionary valuations. GOld my fren is still facing shortage in physical form, paper traders are only the ones manipulating them, the usual pattern of fall after European physsical market closed and rise when asian markets open is repeating itself to tell that only the central bankers cartel is manipulating paper traders of gold.