Irrational Exuberance Trading Quotes - Stock Market Trader Jokes - Goldman Sachs Greenspan Conspiracy Delusion

Allan Greenspan uttered the term Irrational exuberance at the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute on Dec 5, 1996. The rest has become part of trading folklore. Here we do our best to apply and have a bit of fun with irrational exuberance that is such a hallmark of all the trading bubbles through history.

Traders can certainly become irrational when the experience the swings of extreme greed and fear. Who to blame, how to defy logic and walk in the shadow of the delusional. The madness of crowds is over 200 years old but holds court today. To be a successful trader or investor you must learn to recognize the signs of irrational exuberance so as not to become a victim and rather benefit from others absurdity.

There are times to ride the bull with the herd and times when to lasso that bull without being bucked off. The key to contrarian investing is to know when the market has reached equilibrium and it time to reverse. In other words how do you stay rational. Some of these Irrational exuberance quotes will help you.

o you need a laugh to take the edge of you decimated 401 k or long term technology stock holdings? Perhaps these trader jokes will bring a cheer or two.

• Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That's the other guy's problem. Nothing you have ever experienced will prepare you for the absolute carnage you are about to witness. Super Bowl, World Series - they don't know what pressure is. In this building, it's either kill or be killed. You make no friends in the pits and you take no prisoners. One minute you're up half a million in soybeans and the next, boom, your kids don't go to college and they've repossessed your Bentley. Are you with me?  - Louis Winthorpe III

• Little-known fact: When the stock exchange closes, the guy who comes out on the balcony with that big hammer slams it on the head of the person who lost the most money that day - George Carlin
• A long term investment is a short term investment that failed.
• Momentum Investing: The fine art of buying high and selling low.

• Value Investing: The art of buying low and selling lower

• I hear that you drop some money in Wall Street. Were you a bull or a bear?" "Neither, just a plain simple ass. - David Shay

• Stockbroker's creed: A man is a client until proven broke.

• October. This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August and February. - Mark Twain

Former Fed Chairman Alan Greenspan is the man who made the term Irrational Exuberance part of folklore. Thought he market at the time never heeded him and indeed launched into the greatest stock market bubble of all time which the NASDAQ has gone no where near to recover.

He in the end proved right and we still are paying for throughout the world. We have austerity hitting the UK and Europe, high unemployment in the US and a spiraling deficit. We have food shortages through hyper commodity prices forcing riots in Algeria. Egypt and Algeria. Who said irrational exuberance doesn't come with a price?

THE SPEECH

The Challenge of Central Banking in a Democratic Society

Remarks by Chairman Alan Greenspan at the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research, Washington, D.C.

December 5, 1996

The Key Paragraph -

"Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? And how do we factor that assessment into monetary policy? We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs, and price stability. Indeed, the sharp stock market break of 1987 had few negative consequences for the economy. But we should not underestimate or become complacent about the complexity of the interactions of asset markets and the economy. Thus, evaluating shifts in balance sheets generally, and in asset prices particularly, must be an integral part of the development of monetary policy."

• Read the Entire Irrational Exuberance Quote From Greenspan Here
  

ositive trading quotes can come from traders psychology affirmations, positive recollections and affirmations from outside the trading world that apply. Enjoy this selection.

• To be a successful trader you need to trade without fear. When you use fear as a resource to limit yourself, you will create the very conditions you are trying to avoid. Or to say this another way, you will experience your fears. Mark Douglass -- The Disciplined Trader

• The best trading method is to take advantage of the crowd's greed and fear. One must be able to read the current level of market's hidden energy to be a master trader. A low risk high return trade is the trade that aligns with fundamental and is opposite the current market emotion. Jimmy Chow

• One of the critical criteria I use in judging my traders is their ability to take a
  loss. If they can’t take a loss, they can’t trade. John Mack, Morgan Stanley CEO in a 1991 deposition.

• Go for it now. The future is promised to no one. Conflict can not survive without your participation. Everything you are against weakens you. Everything you a for empowers you" - Dr Wayne Dyer

• Life is a comedy for those who think and a tragedy for those who feel. - Horace Walpole

Blame a Conspiracy Trading Quotes. So many bad trades are blamed on different conspiracies some have a basis some are blanket denials of ones own culpability. Of course Goldman Sachs is behind everything - that conspiracy even gets its own section! Simply most conspiracy theories are born in rumor or deliberation and as such can't be proven or dis-proven. Conspiracy theories become shaped and embellished to the times.. When money is involved they can gain momentum and achieve wide belief as fact.

Some Conspiracy Quotes That May Get You Thinking From History

• When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes...Money has no motherland; financiers are without patriotism and without decency; their sole object is gain." Napoleon Bonaparte, 1815

• The real rulers of the world are invisible and exercise their power from behind the scenes - U.S. Supreme Court Justice Felix Frankfurter

• I have two great enemies, the southern army in front of me and the financial institutions in the rear. Of the two, the one in the rear is the greatest enemy. The Money Power preys upon the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes. - Abraham Lincoln

Who is behind the latest conspiracy that caused me to lose?

Here we have a list of popular conspiracists - fill in your quotes here.

1. The Illuminati
2. The Plunge Protection Team
3. The New World Order
4. The Chinese, or the Russians etc
   
5. The Arabs (pick a nationality or religion here)
   
6. Goldman Sachs
7. The Reptilians
8. The Eclipse
9. The Rapture
10. My Mother in Law

Feel free to share any others.

You could really have Goldman Sachs trading quotes as their own little conspiracy. Whether real or not Goldman Sachs or someone with the firm on their resume seems to be making the shots on every bubble and bailout in the past twenty years. Perception and reality are pretty blurred on this one.

We divide Goldman Trading quotes up between the blame Goldman quotes and quotes from the Goldman trading desks including the following.

Firstly from the Blame Goldman Trenches

"Damn I would have made money but Goldman HFT wouldn't let me out (or in)"

"Goldman upgraded the stock just to get out (never a mention of why you bought it and never got out)"

"Goldman used POMO for that move"

"Goldman bankrolled Obama, Dudley, Thane.......... why not me?"

^%&* Goldman ... they made me lose again!"

Secondly from the Goldman Trading (sorry advisor desks)

"How the $%^# am I going to live on a million dollar bonus?"

"Why is POMO not in the trillions?"

"Why the freak is Obama not raising taxes on the middle class I need more POMO"

"Man it is good doing all this for God"

"%^%$ John Paulson I knew sub prime was a short!"

Check out  "This Squids for You - Goldman Sachs Jokes"

Delusional trading quotes could well be dedicated to Jim Kramer and the stock market bull cheer squad over at CNBC. Basically outside of Rick Santelli who is ever bearish (read no delusional) at the bottom of markets?

Seriously this aggressive motor mouth has to be the poster child for self delusional. The herd however is just as delusional. How is this guy still on TV? Not on a reality channel or the cartoon network either! Don't for a minute try and claim mad money as reality TV either. How much further do you want to get from financial reality? Here are some quotes that can foster the delusional trader, these quotes should have one examine their own reality thereto.

Delusion one - The markets are your friend

• Trade knows neither friends or kindred - Proverb

Delusion two - Markets are easy, I don't need to change

• People only accept change when they are faced with necessity, and only recognize necessity when a crisis is upon them.- Jean Monnet

Delusion three - Even my losers make money if I hold them long enough

• There are just four kinds of bets. There are good bets, bad bets, bets that you win, and bets that you lose. Winning a bad bet can be the most dangerous outcome of all, because a success of that kind can encourage you to take more bad bets in the future. You can also lose a good bet, but if you keep placing good bets, over time, the law of averages will be working for you. – Larry Hite

Delusion Four - Trading is easy, I can learn it simply

• There is no place in the modern world for the unskilled; no one can hope for any genuine success who fails to give himself the most complete special education. The trained man has all the advantages on his side; the untrained man invites all the tragic possibilities of failure. - Richard D. Wyckoff

Delusion Five - House Prices always go up

• You can't lose on property, market timing doesn't work hold onto your stocks - boom boom and there she wrote
  

There are of course many more delusions and some are addressed elsewhere here with regard to conspiracies, myths and the like.