Molly becomes increasingly uncomfortable, and upon learning of the affair with Ritter, leaves Stan. She shows Stan a scar down her chest and abdomen that she received from Grindle. Ritter feeds information to Stan to use against Grindle as revenge for him previously attacking her. Despite warnings from Ritter that Grindle is dangerous, Stan begins to scam Grindle and as well as starting to drink. Kimball introduces Stan to the powerful and sinister Ezra Grindle, whose lover, Dory, died of a forced abortion. She also begins therapy sessions with Stan, who reveals his guilt over Pete's death and his hatred of his alcoholic father, who he killed in their home before joining the carnival. Finding themselves to be kindred spirits, she and Stan begin an affair and they conspire together to manipulate Kimball, with Ritter secretly providing private information to fuel his charade. Through her recorded sessions with her clients, she has accumulated sensitive information about various members of New York's social elite. Knowing he is a con man, she is nevertheless intrigued by his manipulative skill. Despite Molly's objections to the "spook show," Stan agrees. He is now convinced of Stan's abilities and offers to pay him handsomely to allow him and his wife to communicate with their dead son. He is later approached by the wealthy Judge Kimball, who employed Ritter to test Stan. Stan's cold reading allows him to best Ritter, keeping their act safe while publicly humiliating her.
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Lilith Ritter, who attempts to expose their code system. During a performance, their act is interrupted by psychologist Dr. Two years later, Stan has successfully reinvented himself as "The Great Stanton", a psychic act for the wealthy urban elite of New York, along with Molly as his assistant, using Zeena and Pete's techniques. She accepts and they leave the carnival behind. In the aftermath, Stan swears his love to Molly and reiterates his plan to her. One night, Stan, possibly accidentally, gives Pete the wrong bottle and the old man dies from consuming wood alcohol. Meanwhile, Stan becomes attracted to fellow performer Molly and approaches her with an idea for a two-person act away from the carnival. He and Zeena warn Stan not to use these skills to continue leading patrons on when it comes to the dead, what they call a "spook show" they always inform customers afterward that the show is a deception otherwise, people get hurt. Zeena and Pete use cold reading and an ingenious coded language system to make it seem that she has extraordinary mental powers, which Pete begins teaching to Stan. Stan works with clairvoyant act "Madame Zeena" and her alcoholic husband, Pete.
Clem then shows Stan where he stores the moonshine he brews to control the carnies, warning him not to mistake it for the wood alcohol he stores nearby.
He uses their dependence to physically and mentally abuse them until they sink into madness and depravity, thus creating a geek for his carnival. Clem explains that he seeks out alcoholics or drug addicts, who are often men with troubled pasts, and lures them in with promises of a temporary job and opium-laced alcohol. Stan is disturbed at how any man could sink to the level of performing as a freak, living in a cage in squalor and biting off the heads of live chickens to appease the crowd. When the traveling carnival's geek becomes ill, owner Clem enlists Stan to help him dispose of the man. Stanton "Stan" Carlisle burns down his Midwestern home and takes a job as a carny. An ambitious carny (Cooper) with a talent for manipulating people with a few well-chosen words hooks up with a female psychiatrist (Blanchett) who is even more dangerous than he is.
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