At this very moment, the public markets are teetering on the brink of a major change of direction…$500 trillion in derivatives could be ready to explode…$15 trillion in worldwide stock market capitalization could disappear…the average American house could lose 20 - 40% of its value…as 5 million families are forced into bankruptcy.
Couldn't happen? Do you believe Ben Bernanke won't let it happen? Or that Wall Street will find a way to avoid it?
If so…you are thinking just like you're supposed to think. That is, you're not thinking at all. Crowds don't think. And they don't protect themselves until it is too late.
Crowds aren't as unpredictable as people suspect. They follow a hidden logic -- which is encoded in all our genes. Once you understand the secret, you'll avoid being a victim of government, fads and fashions, and mass market sentiments…
Have you ever wondered why certain people always seem to come out on top -- no matter what life throws at them?
They make money when others lose it. When social upheavals…or market disasters strike, they somehow manage to avoid being in the wrong place at the wrong time.
'You can't beat the market,' say the scholars. But some people do…more or less consistently. Some people see the early signs of market booms and busts…and some people are able to resist the lure of temporary fads and destructive manias. In fact, they even seem able to turn these mass movements into exceptional private opportunities!
It is as if they were programmed differently from the rest of us…as if they understood -- naturally -- how things worked….
You can't change your own personal programming…
But you can learn to recognize the patterns…
And profit from them…
In the end, the margin between success and failure, profits and losses, defeat and victory is VERY NARROW. And the little margin of success can often be traced to a single insight.
This insight is what you will find described in this remarkable new book.
It shows you why the winners have always been those who can stand outside the mass delusions of their time and see things for what they really are.
An Epic Disaster in the Making
Look what happened during World War II. In Eastern Germany in 1945, old men, women and children went about their business as if nothing was wrong. Soviet Army tanks were already cutting into their homeland. Millions of Soviet troops were advancing rapidly. Yet the civilians didn't try to get away until the very last minute -- when it was too late. They had been told by their leaders that the German army would stop the Russians at the border. Tragically, they believed them!
Yet…SOME people saw the situation much more clearly. They understood how crowds are easily manipulated and misled. They understood how the Nazis had manipulated public opinion from the very beginning…and how irrational crowd sentiments always lead to disaster. These people got out of the way long before the real catastrophe came. The same is true in markets…
The crowd always wants to believe that everything will work out. Most of the time, it is right. Major debacles do not come along every day.
But they do come along from time to time. And that is when you need to start thinking. That is when failing to see how mass sentiments motivate, inspire and direct people and turn fatal.
The Most Important and Entertaining Book You'll Read This Year…
Mobs, Messiahs and Markets is a new book by William Bonner and Lila Rajiva. Read it and you'll have the inside story on markets, politics, fads, fashions, trends and wars. And most importantly, you'll be much better able to make sure you're not their next victim.
You'll also be better able to invest your time and money better…free from the claptrap of what Bonner and Rajiva refer to as 'dangerous, destructive public thinking.' It is also a joy to read.
What makes this book so fascinating is that it looks at history and current events in a new, rollicking way.
For example, why do people buy expensive, gas-guzzling Hummers? Why do men take Viagra…why is there a $700 billion trade deficit? And how do these things connect to the investment markets? You'll see that a lot of what we see in life is actually founded on lies…fraud…and exaggerations. It all seems incredibly complicated and confusing until you understand the key element -- the sociobiological reason behind the everyday swindles we take for granted.
You'll read how this relates to the debt bubble, the real estate bubble, the trade deficit, sex, lies and the follies of the American empire! All of this is explored and depicted in this thought-provoking work.
After reading Mobs, Messiahs and Markets you'll be able to understand the spectacles of modern life, from five-year plans to financial manias, to wars to end all wars…
But let us return to the immediate threat you face. Today, the threat of real war seems far away. But the threat of financial disaster is close at hand. No one knows how close, but it is there.
Two million homes are expected to be foreclosed this year. Hedge funds, mortgage companies and individual investors are all taking a beating
Builders are going out of business. Mortgage lenders are declaring bankruptcy. New financial innovations -- hedge funds and derivatives -- may be sitting on trillions of potential losses. Two Bear Stearns hedge funds already went broke. Then, investors were shocked when Bear refused to allow them to take their money out of a third troubled fund.
The biggest U.S. mortgage lender, Countrywide Financial Corp., was forced to borrow BILLIONS because of ongoing credit trouble. And between July 13 - Aug. 6 of this year, more than $1.2 trillion of market value was erased in the U.S. alone.
Meanwhile, Americans count their wealth in dollars. What exactly is the greenback worth? No one knows. The dollar just fell more than 3% against the yen -- its lowest since July 2006 -- on signs that the U.S. economy is suffering from the subprime meltdown. It is at an all-time low against the euro. And against the British pound, it is at a 27-year low. Not only that, but the dollar index dropped below the 80 mark for the first time in 15 years -- a key psychological benchmark.
But here's the important point: Since it has been cut loose from gold in 1971, the value of the dollar is no longer controlled by the bankers, or the printing presses or even by economic fundamentals; instead, it has become controlled by CROWD DYNAMICS. In other words, the fundamental building block of American wealth is itself a feature of the same mass sentiments at work in the rest of the markets.
But history has shown us that crowd dynamics alone do not hold up a paper currency for very long. Instead, currencies rise and fall alongside the empires that create them, and the U.S. dollar will not be spared.
Delusion Turns Into Catastrophe…
Empires, paper currencies, credit bubbles, economic booms, wars and witch hunts all go through the same predictable stages…because they are all driven by the same crowd sentiments. They all begin in hopeful fervor. And then they mature…decay…and collapse. Until now, no one really understood why or how…People merely referred to these events as the 'madness of crowds' or the 'overreaching' of empires. Groups of people 'go a little crazy' from time to time, they said.
Instead, the progress of mass folly is foreseeable -- not in detail, but in broad outline.
One thing leads to another…delusion to catastrophe…triumph to defeat: Mass man is set up to fail. Whether he is participating in politics, war or public markets.
This new book by best-selling author Bill Bonner and political journalist Lila Rajiva picks up where Charles Mackay'sExtraordinary Popular Delusions and the Madness of Crowds leaves off. For the first time, it reveals how groups of people -- such as the groups that determine market prices -- believe things that couldn't possibly be true…and do things that are not really in their best interests.
When a nation is on the upswing, the average person can swing along with it…and enjoy a reasonably decent life. But inevitably, all public spectacles must have their victims…their lemmings…their cannon fodder…their market losers. And when things go bad, the average man is the one who suffers. He is the man who patrols Baghdad's streets…and pays Wall Street's salaries. He is the man who sends his money to the House of Representatives so it can be spent on boondoggles while his own house is lost to foreclosure. He is the victim of mass sentiments…
The insight you will gain from this astonishing book is CRUCIAL to your understanding of politics…history…investments…and more!
As far as we know, no other book…no other thinkers…no other writers have ever really gotten to the bottom of it.
The Secret Life of Crowds….
It seems so obvious: In the stock market, for example, the crowd runs stocks up to outrageously high levels and then it suddenly becomes fearful and drives them down to where they are outrageously cheap.
All you have to do -- once you understand the pattern…is to keep your eyes open. You CAN buy low and sell high. Plenty of people do already.
But there's more to it. There is the fact that YOU ARE PART OF THE CROWD…and unless you are careful, you will see things the way the crowd sees them.
This is the real secret. The way we think is a result of millions of years of evolutionary selection. Man himself has lived in groups, under the influence of others for at least 50,000 years.
Before that, pre-man also lived in groups, hunted in groups…survived in groups…for thousands and thousands of generations. He is the product of a group…and can barely exist out of it. What's more…groups have powerful taboos and incentives to hold the group together…and make it VERY DIFFICULT to go against them.
But today, there's one difference that it is vital for you to understand:
Groups today are much, much bigger than the tribes in which man's instincts evolved. And that changes everything. Because you can no longer know
people firsthand…and you can no longer see the dangers and opportunities with your own eyes…
Studies show that your brain is hard-wired to work best in groups of a certain size…and no more. Look at a primitive tribe…or even the organization of the army. You will always find groups of about that same 'magic number.'
When you have a group of that small size, people can cooperate based on mutual trust, simple rules of behavior and easily understood hierarchies. The idea of 'human scale' has been touched on in a number of popular books -- but authors have consistently missed the point: As the size of a group approaches or exceeds the magic number, it begins to go haywire.
And the secret to understanding politics, markets, wars and fashions today is this:
Today's groups are huge. But they are still made up of individuals -- each of whom is programmed to operate on SMALL-GROUP principles.
As groups get bigger, group interaction becomes inappropriate…counterproductive and, often, disastrous.
You'll see how the authors demonstrate this in their descriptions of historical events…from the madness of the beautiful Mitford sisters…to the monstrous programs of Mao…to the comically inept performances of Benito Mussolini and Che Guevara. (Did you know that Che was once a central banker? Guess what happened to Cuba's economy when Che was running things?)
Even the most illustrious public leaders are often mind-bogglingly stupid. Alexander the Great…arguably the greatest general of all time…marched his troops through the desert where tens of thousands of them perished from thirst and hunger. Didn't he bother to stop and ask for directions.
Napoleon attacked Russia, and later Hitler attacked Russia -- neither bothered to properly outfit their troops!
You'll see how large lies hold large groups together…giving them a sense of purpose and a direction. That is what Hillary Clinton meant by her 'politics of meaning' quip. And it is also the best way to understand popular slogans, such as Hitler's need for 'Lebensraum' (living room) for the German people…or the Japanese desire to dominate a 'co-prosperity sphere' before World War II…
Of course, we have our lies now…bigger than ever: stocks for the long run. Every vote counts. No child left behind. The war against terror. Ethanol now. Most people are so deeply immersed in public thinking that they never question them.
Bigger Groups. Bigger Lies. Bigger Opportunities.
The secret to making a lot of money in the financial markets, says George Soros, is to 'find the trend whose premise is false and bet against it.'
The group that decides stock market prices includes millions of people. There are 300 million people in the United States of America. And there are billions of people who make up the modern, globalized economy.
How can all of our small-group breeding help us understand how to operate in such large groups? And what does all this mean to the price of beans in Thailand? Or the price of Microsoft stock? As it turns out…quite a lot.
And it means a lot to you too. Because our small-group instincts inevitably lead to big group trends…whose premises are usually false. And with this new understanding of crowd psychology -- that is, the psychology that works on markets -- you can anticipate these trends and how crowds will react to them. In short, you'll be ready to make money in the public markets. And protect yourself.
That is why it is absolutely imperative that you read this book now…at this very crucial moment for the global markets as well as for the U.S. empire.
Mobs, Messiahs and Markets shows you that what is happening now in the markets and in politics is not new. It's all part of the pattern of group dynamics. Same winners. Same losers. You can be a contrarian, say the authors. Or you can be a victim. Taking you through a brief, outrageously offbeat history of the modern world, it shows you why the winners have always been those who can get away…or stand on the sidelines.
For example, Mobs, Messiahs and Markets tells a short history of the Great Crusades -- from the Arabs' point of view. You'll see that the Crusades were supposed to be an expression of religious fervor or political power, but they were really an outlet for the same kind of mass man delusions that run up stock prices!
Or take the European witch hunts of the 17th century. As many as 40,000 - 100,000 people were accused of witchcraft and killed. What was really going on? Did people just go a little crazy? Or was there a combination of thought and action that we can learn from? (You'll find the answer rather surprising…)
If one lesson in history is clear -- crowds act in unintelligent, often suicidal ways -- World War I was one of the greatest public spectacles of all time. Generations of historians have tried to explain why Europeans did such a self-destructive thing. Militarism, nationalism, interlocking alliances, and imperialism -- many are the 'explanations' they have come up with. None are very satisfying. But after reading Mobs, Messiahs and Markets you'll see World War I in a new light too -- as a showdown between vast, modern societies run by premodern men. They had no real reason to go to war…so they went to war without reasons!
These were huge groups…operating as though they were small tribes.
Authors Bonner and Rajiva spend a lot of time looking at history. 'Without history, what else is there?' they ask. 'Reading history,' they say, 'you can see the lies groups told themselves in the past. Then you begin to wonder about the lies we tell ourselves now.'
Why Leaders Lead in the Wrong Direction
How do YOU survive wrongheaded public thinking? You'll get your answer by ordering you copy of Mobs, Messiahs and Markets today…
After just a few pages of Mobs, Messiahs and Markets, you gain an entirely new perspective that could change…and maybe save your life.
Have you ever wondered why, for example, not just one…but BOTH candidates for president seem to be losers? There's an explanation…and you'll find it in this groundbreaking book.
And have you wondered why it is so hard to have a reasonable discussion of politics with friends and neighbors? It is as if people spoke different languages.
Why is it, too, that people who are able to do their work, and conduct their PRIVATE lives, with reasonable success…will often have PUBLIC ideas -- about politics, culture and economics that are completely absurd?
If they drove a car with the same recklessness, they'd soon be dead!
Surviving and Prospering in a Groupthink World
Mobs, Messiahs and Markets ends by giving concrete advice on how readers can avoid what the authors call the 'public spectacle' of modern finance and become, instead, 'private' investors -- knowing their own mind and following their own intuitions.
In the book, you'll discover:
Why the 'little guys' will NEVER get a fair shake in investment markets and how to make sure you're not the pros' next victim
The surest investment for the final stage of a great public spectacle…
Why you should never buy what you want to buy…nor what others want you to buy
Get your name in the paper? Not if you can help it…you'll see why
How to understand mass moods with the clarity and precision you need to profit from them
And that's just the beginning. Mobs, Messiahs and Markets lays out the foundation to overall financial success…
It shows you why the winners have always been contrarians, dissenters and original thinkers.
You'll also learn that there is always more to the story than what you can get in 30 minutes on the TV news channels -- and explains how that to REALLY understand the story, you have to understand how the news is selected by the media…and how the mobs are manipulated by certain special interests…and, finally, how mass sentiments have a life of their own.
Here's the Bottom Line
Over the next few years, many people are going to be ruined; fortunes will be wiped out. New groups of people will acquire wealth and power…while some of today's most powerful and richest people will be destroyed.
Every public spectacle must run its course, say authors Bonner and Rajiva. There is no stopping history.
But individuals cannot only avoid being victims of history, they can be its success stories. They can be among the few whose investments go up when the great mass of people lose money. They can also master the trends and fads that dominate modern life.
Get Your Copy of Mobs, Messiahs and Markets Today
There's one last detail you should know…
This is the first time Bonner and Rajiva's newly released book has been made available to the public.
If you act right now, you can grab your copy of Mobs, Messiahs and Markets for a phenomenal deal.
Bonner and Rajiva's book is AVAILABLE NOW for only $18.45 -- at least 40% off the cover price.
But here's the most important reason why you should act quickly…
We're faced with the biggest financial threat of our time. This is perhaps the one time that you cannot afford to NOT read this book.
In Mobs, Messiahs and Markets, you'll gain profound insight on how to steer clear of the mob sentiments…and you'll discover how you can use the information detailed in this fascinating book to improve you own financial future.
The world's finest investors, writers and thinkers agree, Mobs, Messiahs and Markets is the most important and entertaining book you'll read this year…
Learn how to protect yourself…your friends and family members today!
Make one of the most important decisions of your financial life.
I urge you to get your copy today and secure this limited-time discount. Order now and you'll get a minimum of 40% off the regular price!
I know you'll be glad you did.
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