Wave of Suicides

We're starting to see a wave of suicides from executives involved in the financial crisis: Adolf Merckle, Kirk Stephenson and Thierry Magon de la Villehuchet. Japan is bracing itself for a massive wave of suicides. 

The father of former girlfriend told me years ago that he went bankrupt in the 50's and when he went to church after the filing, many churchgoers asked him quietly why he didn't commit suicide since he brought shame to his family. This was in the 50's in Germany and I thought we were over this kind of thinking. I guess, I overestimated our culture.

Your job, your income, your bank account should not be tied to your self-worth. What you make doesn't make you a good or a bad person. Yes, it is embarrassing, frustrating and depressing to lose your job, to lose all your savings, to have to start all over. Maybe even stop at the jail for a while. But how far have we gone with our love for money and status that when both disappear, we want to disappear as well? 

Dramatic changes

We tend to believe that changes happen slowly: growing up, mature, aging. Slow and steady seems to be the typical pattern but real-life events tend to challenge our assumption. Early this year, we didn't know that Wall Street would never be the same, that a young challenger would win the US presidency in a landslide and that we're moving again into a polarized world with the East battling the West.

Reminds me of West-German politicians sincerely communicating the durability of the German Wall for the next 1,000 years, just to see it fall a few days later. Reality is, we have problems understanding change. The complexity involved in major changes is too much for our human brain to grasp and understand. We hear many people say that things will never be the same after the failure of Lehman. Do we really mean it or do we just say it because it seems so complex and so hard to understand that we proclaim these changes without understanding them?

When the credit crunch was at its height, consumers heard about the problem but continued with their buying behavior because they didn't understand the implications. Once Paulson and the Bush administration played the dramatic fear card, everything came to a halt. Go to a mall now and you'll be often by yourself. It might not be a rational response to the crisis but who said human beings were rational?

Cheech and Chong Stock Indicator

Minyanville just published a fascinating piece, explaining that the popularity of Cheech and Chong is inversely correlated to the movement of the United States stock market. Or as Minyanville says 'the more popular Cheech & Chong are, the less popular stocks are.'

Cheech and Chong Reunion Tour tickets went on sale 8/8/2008 and the resurgence in pot humor has been devastating for stocks: Down by 37%.















The article closes: "After a mind-numbing move of that magnitude, I would love to say that the Cheech & Chong indicator is finally forecasting a bottom for stocks. But no. These guys keep adding dates! They've got a concert film in the works. Creeping Jesus, they were actually roasted on television last Sunday night by Martha Stewart and Wilmer Valderrama! Where will it end?

With concert dates scheduled through at least February 2009, the Cheech & Chong Stock Market Indicator is telling us the end of this bear market is at least several months away."

So, please: put the bong away, throw away the joint and tear up your Reunion tickets. It's time to get serious and stop the bleeding on Wall and Main Street. Think about it: When Tommy Chong was in prison, the Dow Jones was around 10,000. How would you and your 401k like that right now? We should start an immediate investigation how those two stoners are rigging the markets. Treason charges should be looked into. Enough is enough.