Read everything that I ever wrote in my books, websites and blogs about C-MOR, my model for national and personal recovery from all problems! Here, I will give you one example how C-MOR is smashed to death by politicians at the cost of four trillion dollars to tax payers! See you again when I return to Canada!

England just bailed out its ill banks to the tune of 75 billion dollars. The British government did not legally required the banks to change their business practice of wasting billions! The US did it to the tune of 3 trillion dollars to save us from recession in 2008. The Germans are “saving” Greece, and so on. What is wrong with that? C-MOR says, “Karma must be maintained to get good results in any area of life.” C-MOR interprets, “Banks that failed must bear the appropriate consequences. Governments should be allowed by law to bail out banks only after the banks bear the consequences of their ill behavior.  Surveillance and reinforcement of laws must ensure that the banks pay off the loan with interest and do not do the ill behavior again.

Any government official that do not understand or implement the above must be retrained in college, fired or not reelected.

Do you want your good life back? C-MOR is the answer!

Economists can’t agree on what’s behind the economic malaise because what’s behind it is an innocent statement by Obama two years ago. He said, “America has no manifest destiny. The USA is just like any other country.”  Holly Moses, if you had convinced Einstein that he was just an ordinary guy, would he be able to reinvent physics? No, of course not. Well, Obama convinced Americans that they don’t have Yankee ingenuity and that they should act like Greece, South Africa, Spain, Kenya, Ireland, Portugal, France, Mexico…we are just like all the other countries, fellows! Obama, you ignorant man, you have given us the biggest kick in our cultural pants since Bush’s statement, “I suspend Capitalism to save Capitalism’ or Wilson’s “I wage a war to end all wars.” We now act like all the other countries. Thanks, Mr. President for demoting the one great nation on Earth that has given humanity everything worthwhile on planet Earth. Another four years with you Mr. President and Americans will move to Saudi Arabia where the oil is plenty to guarantee their employment.

Consumer Confidence Index (CCI) is down in the United States and it affects the rest of the world economy. Who is to blame? How about Obama’s leadership, but only if you say that he knew how to manage the economy and didn’t. Well, actually you can’t blame Obama because he is a lawyer not an economist and have no training or experience as an economic CEO.  So, Obama is off the hook. But, the American people still suffer high unemployment. Why? Because something is wrong when economic policy falls into the hands of Democrats who care much less than Republicans do about producer confidence (both care about consumer confidence). Did you know that if you go to Google right now you will not find a definition for  producer confidence index (PCI) in Wikipedia!  Yes, the Democrats, leftists and Liberals took over the critical thinking skills of the American people. The subprime mortgages and other governmental programs raised consumer confidence by creating artificial jobs and unsustainable homes, while no university was concerned with designing a standard producer confidence index  –  the scientific scale that estimates the jobs  production (employment) in this country!

If you voted for Bush or Obama you brought this mess on yourself. Stop being a dummy. Look, eight Republicans are debating who is the most qualified to take the presidency away from Obama. Listen, it isn’t complicated. Vote for the one closest to suggesting that right now in our history we need a producer confidence policy. Think producer confidence with a new leadership all the way to the polls in 2012! Don’t be fooled again!

Having said that, sadly, it’s all just philosophical. Did you know that  throughout my career as a psychologist most of the people I met did not  know that thinking and feeling were not a behavior! Do you want a solution that is not just philosophy? Ask me about how to start  a C-MOR curriculum in your school!

Here is what will happen to your APPL stock: Steve’s announcement came out. Trading in Apple shares will be heavier than usual on the selling side causing a drop of 3-8%. It’s all a matter of personality. High frequency trading pessimists who see the cup as half empty and worry about the future (about 10% of us – always get rid of things fast) will sell some of their Apple shares to the few Apple die-hard who will buy tomorrow without waiting for further drops (not very smart). On Steve’s death (very sad event that is coming, indeed!) Apple share’s will drop 8-20%. Now it becomes a matter of personality and economic projection. How can the company continue to thrive when the revered founding CEO is dead? It’s never going to be the same from now on! Some holders of Apple shares are motivated by mistrust and anxiety that interferes with their optimism about Apple’s future without the father. APPL shares may hover below $300. The optimists (those who own iPods, iPhones,  iMacs, Apple TV, or  iPads) start buying. The iPhone 5 is great, beats the Android, Apple’s future looks solid again. Shares hit $400, $500, even more, but….  5-10 years down the line what happened to UCLA Bruins Basketball (after John Wooden retired) may happen to Apple stocks (after Steve is gone). The creative genius coach of the UCLA Bruins was not replaceable no matter how hard the dudes in the NCAA tried (there was only one John Wooden and there is only one Steve Jobs). That’s when you sell your AAPL.  By then Zuckerberg’s Facebook is on your menu or you are waiting hungry for a future dude who is now a teenager…not the social type but the tinkerer with models of computer super-panels  for Enterprise spaceships. One saga goes and another one starts for behavioral investors like you and I who love America leading forever!

 ”however…” has to do with the public of investors not understanding “timing” and not knowing what shares to buy.  Most investors operate from an  archaic notion of analyzing  variables espoused by

classical economic theory

straight from Harvard university faulty PhD  program. For example, there is a variable that is highly predictive of share price movement. That variable is rarely recommended for strong use.  Other variables that are less predictive are recommended for use in the wrong way. For example, bring up on your computer the Dow’s 200 days moving average. Do the analysis right.  Analyze that the graph is going up, up and up. The Dow’s 100 days moving average is also going up, up and up. The 50 DMA is also going up and up, but is tapering off. Even the 20 DMA went up for 6 months and started tapering off a few months ago.  Good reading of the  DMA is just one measure of many that indicate that the market drop is very short-term.

You see, the problem is that the average investor never read my books on behavioral investing because i don’t follow traditional rules of financial logic that come out of Harvard university. nevertheless, if you play by new emerging behavioral rules that work instead of hanging on to traditional economic rules that don’t work  anymore, you will see the opportunity to buy in the short run!

The correction is not a panic. Corporate, government, associations, union,clubs and a few individual billionaire investors are responsible for it (it is not a blame). Their primary concern is not maximizing profits but job security. They created a fast system of being able to trade in and out of of markets, surpassing your ability to do so. It is legendary in the electronic age. It is responsible for the bulk of the fast 10% market correction. Psychologically speaking it is done not out of corporate panic buy out of strategy of fear that says: “Let’s protect our CEO careers in case 1929, 1987, 2001 or 2008 return without warning.”  We are accountable to our rank and file membership. This market behavior is  CLASSIC ECONOMICS par excellence, a global financial system (except China) that isn’t concerned with improving structure (rules, behavior, context, framework, utility) of economic activity but rather with fixing function, a patchwork approach.  A case in point: European economy isn’t working well because over the years of EU existence government welfare, lack of productivity in Spain, Greece, Ireland and other countries increased to the point that Europe had to ask the hard-working Germans to bail Europe out. It is unthinkable in CLASSIC ECONOMICS to change the economic culture by changing the context (not content) of economic activity. Europe is going to issue a Eurobond to raise money to bail out countries instead of replacing classical economics with BEHAVIORAL ECONOMICS. The 10% market correction will end soon with groups putting their money back into the market – till the next economic crisis!

The academy of behavioral finance and economics at UCLA is 3 years old. Our meeting in on September 21-23. It is time for the public to learn about behavioral economics for the betterment of society.

The government voted to have a debt ceiling so it won’t overspend your money and be punished on election day. Government officials are not as psychologically secure as you are. They know that they will behave irresponsibly and need to cap spending. You don’t. Both of you don’t live within your budget means but you have more control over your money because you earned it. Government officials spend your money, not t and therefore they need to restrain themselves with a debt ceiling!

The solution is to go back to school and teach a financial  C-MOR educational program for 5 levels of education: elementary school, high school, college, graduate school and Ph.D. program. I will help you for free. Find what C-MOR is on my blogs. Get to work to better your finances and your government’s.  Most of the world doesn’t have a debt ceiling because they don’t spend a lot of borrowed money on things you don’t need! Elect representatives that promise not to spend your cash on things you don’t approve of such as wars, keeping American troops in Europe, hiring government employees that do nothing, duplicate services, using your money for trips and vacations, giving foreign aid to countries that hate you, and hiring Harvard economists not trained in behavioral economics to run the economy!

As Barack Obama said about changing, “Yes, we can,” we all need to change but not the change that he has created in the last 3 years! You, the great American people can balance your budget. I am confident and optimistic for the future hegemony of the American Dollar in the world. Read the section on Americanism in my books.

1. Both parties must acknowledge in PUBLIC that 14 trillion-dollar DEFICIT is so high that the debt ceiling must NOT be raised beyond it. LIVING BEYOND OUR MEANS IS PSYCHOLOGICALLY DAMAGING.

2. Both parties must acknowledge in PUBLIC that going into default will cause more than just damage America’s credit rating. It will create a tsunami in world markets, wars, hunger and failure of countries to move toward democracy. STOP CONFRONTATIONAL POLITICS.

3. Both parties must acknowledge that raising taxes on hard-working Americans is the easy answer and the – WORSE answer. YOU TAKE MY MONEY AND SPEND IT ON YOUR ‘STUFF.’

4. Both parties must acknowledge that trimming government by 25% must be done now, freeze hiring, fire incompetents, eliminate waste, prevent duplication of job descriptions, etc. (you can reduce government without hurting people or essential services). THINK!

5. Both parties must acknowledge that protecting the US mainland and overseas businesses can be done MUCH BETTER without having American troops in every country in the world. BRING THE TROOPS HOME.

6. Both parties must get together and establish an EMERGENCY FUND for one fiscal year to pay the bills as government is being TRIMMED. Ask Americans to DONATE  the maximum amount that they can to the national emergency fund and take future deductions. Tell Americans that DONATING money to the emergency fund at this time in history is more important than donating the billions they do to unregulated charities, the United Nations and the many entities the US gives money to without accountability.

I could go on and on but that is enough. Just doing what I am suggesting will save billions of dollars. AMERICA, THINK DIFFERENTLY ABOUT BUSINESS AND LIFE.