In this memo, Howard Marks examines the extreme emotional shifts that characterized the 2008 financial crisis, contrasting the previous era of reckless optimism with the period's overwhelming despair. He argues that true skepticism requires resisting the herd in both directions, meaning investors should look for opportunities when market pessimism becomes excessive. While acknowledging the necessity of government intervention and the potential for long-term currency debasement, Marks emphasizes that the resulting market collapse created a rare environment for buying undervalued assets. He suggests that the financial landscape will become more regulated and risk-averse, yet this shift will ultimately pave the way for new, disciplined growth. By maintaining a focus on intrinsic value, he encourages a contrarian approach that views a crisis as a necessary correction for past excesses.