Stock Markets Exposed

Why is US Stock Market sliding down? I know that the US Ecomony is under recession. but.. pls explain.?

Public Comments

1. The US market are down as well as most global stock markets. The market is currently discounting the impact of a US recession on corporate bottom lines. In the current dynamic, economic activity in the US is declining due to a tightening in the availability of credit to businesses and consumers. Less activity means fewer revenues for businesses, and this will drop profit expectations for public companies. When the stock market corrects sharply like it has, it means investors are pricing in lower profit projections.
2. Additional reason: PRC is moving from holding US $ paper to other currencies, other investments. This implies weakness in the dollar (inflation has taken 40% of US $ value since 2000). Fed is printing more billions of $ for liquidity, which increases inflationary pressure, lowering the value of the dollar; the excess money supply helps keep the US stock market up. Without this inflationary assistance, the US stock market would decline more severely. When the weaker US $ no longer dominates the oil market as currency of "choice," the US economic picture is expected to be more dismal, for some quarters. Large investment funds have already seen this, and are moving into other non-stock market investment opportunities. The "public" has not grasped this as well.