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Michael Lewis Inside the Collapse (REVIEW) - Mike Swanson (03/16/10)

Submitted by Mike Swanson on Tue, 2010-03-16 08:24.

Here is something neat, Michael Lewis who wrote Liar's Poker, The Blind Side, and Moneyball is coming out with a book about the financial collapse of 2008.

Instead of talking about the failures of Paulson, Bernanke, and Greenspan and how they screwed everything up he talks with people who actually saw it coming. He thinks only a small number of people were able to short in 2008 and make money. "Between 10 and 20 investors at most and this is from the universe of tens of thousands of people who could have conceivably made that bet," he says.

Well, we did and you knew the collapse was coming if you were a subscribed in the summer of 2008 too. I made about half a dozen videos on Youtube warning of the coming collapse. I did this not because we had some secret knowledge or something, but just used common sense. Anyone could have seen that Fannie Mae was going to go bust and that the banking system had phony balance sheets thanks to the blessing of the Fed and regulators.

We were able to do this, because we didn't obsess about missing out on a market rally during a bear market and therefore didn't invest in fear like 99% of the people do - including the Wall Street professionals. So we were able to look at the market objectively at the time.

Anyway, he is a 60 Minutes interview with him. To watch it click here. Or here:


Part One


Watch CBS News Videos Online

Right now there aren't a lot of big things happening in the stock market. There really aren't huge trading opportunities sitting out there right at this instant. However, this is going to make people try to make trades happen in order to do something and they'll get frustrated. Others will fall asleep and stop paying attention to the market.

And then at some point towards the end of the year the market will line up to make a huge move. I don't know which way it will go, but the most important thing to do this year will be to watch the technical signs to determine this and then invest accordingly.

Very few saw the collapse pf 2008 and profited from it. And at the end after the market ends this big sideways trading pattern very few will realize it. Almost no one can be patient for it or put themselves in a position to be open to paying attention.

Maybe you didn't profit from the 2008 collapse. Or many you lost money. The lesson you need to take from it is that you missed one of the biggest market moves in our lifetimes. Figure out why and what you need to do to make sure you don't miss the next big move when it starts.

How did the guys profiled in 60 Minutes do it? There is the answer....

"People are incentivized to see what they want to see." That is a quote from it. How do you incentive yourself to see the truth and not just invest with the crowd? This is the real secret to making money in the stock market. Answering this one question for yourself.


Part II


Watch CBS News Videos Online


Watch the 60 Minute show, it's worth your time.

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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

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