Game Plan...

It's time to put pen to paper and get over any inertia that may prevent sound action. It is my belief you plan for the worst first aways. When you have that plan on paper then you can act more rationally whatever your veiw point is... Traders know that fear is the most distorting and dangerous emotion. I have a plan in place and you'll sleep better (even if it's on the coach in front of the TV).

What's your plan?

Here's how I'd would start:

1) By the end of this week you should have a brokerage account that allows you to trade on margin and buy and sell uncovered option. A margin account allows you to short stock and options allow you to take advantage of market volatility strategies. By no means should you be trading anything on margin or option strategies unless you know what the risks are (that why it is good to have a son that know's those markets and builds those apps). Contact you current electronic broker and let me know who it is... Might want to avoid etrade, some how they got caught up in this subprime a few months back.

2) You have to start evaluating how your going to fund these accounts. I suggest you start looking at you losers that will give you the most tax benefit. Let go of the notion, that I know haunts you, of capital gains A) Your paying cap gains b/c you made money let the govie have thier due (holding on makes you slow and bloated) B) embrace the idea of liquidity (flexibility) and diversification (resiliance)... Get me your stock's I get us some stuff to look at. Do this soon...

3) Go to http://product.half.ebay.com/Conquer-the-Crash_W0QQtgZinfoQQprZ2296498 and buy this book. "Conquer The Cash - You can SURVIVE and PROSPER in a Deflationary Depression." By Rob Prechter ... It's the ultimate safe money guide. Read Charpters 10, 11, 13, and 33 and in 30 minutes you know more about how to protect your wealth in the worst market environment then your broker... Then go sign up to the website to get newsletters sent to your emailed http://www.elliottwave.com/conquerthecrash -> key word "buying" to get a login...

4) We have to get investment Ideas and the symptoms of the worst case scenerio's written down. I'm starting to do this via Blogs. Checkout http://www.marketsmove.blogspot.com/

5) No trades until you have a plan

I want a concrete plan in place by next week.

We're seeing history... It might very well be the kind of history that only academics remember and in retrospec the masses say "Oh I remember that Lehman thing" or it might be the kind of history where people say "how could this have happened?" I'm planning for the second and hoping for the first. I think that is the most prudent thing to do... I believe the downside trumps the upside. I'd rather lose out on the potential profits of a rally then lose my savings. Forget greed (even though "its good") and be happy with what we have. Make this your #1 on the to do list. Regardless of what happens you won't regret it. You'll sleep better. Love ya