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The tagline "Based on true events" or "Based on a true story" is used by the makers of the movie to get people in the seats and up the realism. The Coen brothers used it for Fargo, the original TCM used it as well as the "remake," and numerous others since the beginning of film making. When you see the word "BASED," you should automaically asume it is a very loose interpretation of certain events. Like others have said before, the TCM flicks, as well as Psycho, are based on the murders of serial killer Ed Gein. Naturally, when we think it's a true story, we tend to become more emotionally tied into it. Shit, just look at the stir it caused when Blair Witch came out. Everyone I knew thought it was real.
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