I have a "system" for handling it when the markets get redder and redder. I print out a few charts and mount them on the wall upside-down. Instead of redder and redder it just looks rosier and rosier. Makes me want to go out and buy a new car.

A buddhist monk once said the time to work on creating your best behavior is not when it's easier, but when it's the hardest.

The credit crisis means a shortage of cash, so cash is being sucked out of everything. I have positions that are the opposite stance of each other and both are down. The central banks are desperate to buy back some of the gold they sold short, as they hold only IOUs now instead of the yellow stuff, so they are dumping a lot more gold short, in the hopes of buying some back cheaply. That can't last.

I saw signs of renewed life already today.