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Very interesting review of “This time is Different: Eight Centuries Of Financial Folly” I’m currently reading this book and I can’t praise it enough.

Click Here To Read: Warning: Your Brain Is Killing America’s Capitalism

Subheading: (Via Marketwatch) Recovery? New bull market? Yes, yes, get your money out of the mattress, out of CDs and money markets. Buy stocks — emerging markets. Buy ETF hedge funds. Buy junk bonds, bailed-out banks. Buy. Get back in the market. Buy, buy, buy.

Introduction (via Marketwatch)

Warning: The investor’s brain is infected with a deadly disease. And like P.T. Barnum, Wall Street knows your brain’s a sucker just waiting for any excuse to get back to playing their game at their casino by their rules.

Yes, you have a disease. Not swine-flu pandemic, but even more toxic — to your financial health. Your brain’s infected with the 800-year-old “this time is different syndrome.” But unlike the swine flu, there’s no cure, no shot to protect you from a pandemic. You’re exposed.

And yes, Wall Street is taking advantage of you, adding new fees and higher commissions, siphoning off returns. They’ll keep it up until the next crash, soon. Then they’ll raid the Treasury again — more bailouts, with your cash. And Congress will give the crooks trillions again, thanks to their lobbyists.

There’s no cure. You have it. Congress has it. And with a recovery and a new bull primed to roar, Wall Street’s dying to take advantage of your disease.

Want a professional diagnosis? Read “This Time Is Different: Eight Centuries of Financial Folly” by economists Carmen Reinhart and Kenneth Rogoff. “The best empirical investigation of financial crises ever published,” says Harvard’s Niall Ferguson, author of “The Ascent of Money.” But it’s more than just a history of 800 years of never-ending, self-destructive bull/bear, boom/bust cycles.

Additional Excerpts (Via MarketWatch)

First off: You have to understand why other behavioral economics books are misleading you back into an old Wall Street trap. They all have an implied promise that’s not only misleading but also toxic in the investor’s brain. Their promise: “If you follow our advice, your irrational brain will become ‘less irrational,’ more rational, even make you rich.” This promise is dangerous and will cost you dearly.

Bottom line:  (Via MarketWatch)“This Time Is Different” should be in every investor’s library, it’s the best reminder of behavioral economics truths and the best chronicle of eight centuries of financial history. Other behavioral finance books will mislead you with their self-help pop-psychology promises of a cure. But bull-bear cycles are natural and inevitable, and you are vulnerable. Unfortunately, the book also warns that over the long-haul “This Time Is Different’ disease is also sabotaging capitalism, damaging America’s role in the world, and killing your retirement.

Look closely: You’ll see how behavioral economists are reviving Wall Street’s toxic message in every one of their books, with implied promises to make American investors more rational again. And as you’ll see later, that’s just another symptom of your brain’s “this time is different” disease

Click Here To Read: Warning: Your Brain Is Killing America’s Capitalism

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