Reflecting on what got the markets to this point

This post might rub some of you up the wrong way, but I think now is a good time to encourage you to spare some time thinking about the bigger picture and your place in it.

How do you think the markets got into this predicament? I'm not talking about specific things, such as ABCP, SIV's, TARP, N.I.N.J.A. Loans and all that - these all played their part as the 'means' to a particular end. 

Trade in exotic financial instruments, all-too-willing property 'investors', mortgage brokers putting loan proposals to illegal immigrants - there is a common thread running through these things. They all require a certain state of mind in order to even be considered, let alone acted upon.

I don't know about you but it seems pretty clear that the following ingredients are necessary in the state of mind of participants in order for these things (that in hindsight were clearly extremely imprudent dangerous and/or ventures) to become the 'norm':

• naive (or blind) euphoric trust in others
  
• greed (for more)
• fear (for missing out on what everyone else is apparently benefitting from)

Now turn to the flipside...

No doubt a great many trading along with Atilla today made some significant profits.

But I would implore you - and I am thinking of some more than others based on some of the comments posted earlier today - to step back and reflect on the bigger picture and how you want to fit in it.

Ask yourself: are you exhibiting those very same characteristics that caused this bubble, just this time in the other direction? 

The state of mind that created this unholy bubble mess can wreak as much, if not more, havoc if employed to the downside. Such an attitude is not productive or helpful to anyone, in my honest opinion.

I am also guilty of this. I rode the fall into Oct 10 with Atilla, and on reflection some things I said at the time revealed my own self-centredness about the large profit margin I was making. 

That kind of thinking is unwise and destructive and will create more long term problems with you and the people around you than your profits will solve. I like to think I've learnt from that lapse in wisdom and balance on my part, and perhaps you can learn from my experience.

I hope this doesn't come across as 'preachy'. I mean to make a legitimate point for your thoughtful consideration. Sleep on it.