Stock Markets Exposed
What is the real reason behind the stock market crash?
If people are saying money is not going around.. how come even in holiday seasons where people use huge amount of money, the stocks do not rise?.. shouldn't there be another reason??
Public Comments
- Fear.
- I knew a person that bought a house with no money down for 450,000 dollars and then sold it to an individual for 600,000 and he bought it for no money down. Then some one bought it from him yes you got it. No money down and he sold it for 800,000. Now that keeps going on until the market crashes and brings the market down with it. Also the banks were taking all those loans and securitizing them and selling them to stock and bond investors after having them rated AAA bond our honest bond makers. Its lucky we still have an economy
- First of all, if like the person said below (unless i misunderstood, then I apologize in advance), if peole kept buying houses and selling them @ higher prices, that would not bring any market down, it would do the opposite. The reason everything happened was what they explained...a bunch of bad loans were made, and the paper (mortages) were sold off as bonds almost as if the bonds would pay off, but investors got hurt becuase the loans all defaulted, and the bonds never paid off (matured) So now you have a bunch of banks and rating agencies who don't trust eachother, so no one can release bonds on their debt to make good on the underwritings, and banks won't lend to anyone which eventually hurts companies who finance payroll, and inventories... Big investors see the turmoil, and start selling HEAVY, bringing prices down, the average joe like you and me open up our 401k's realize the same thing as the big investors, and sell a bunch more, bringing demand for stocks very very very low, and supply very high, hence price depreciation, and the stock marker "crash" Hope this was helpful, this could go on and on for hours.
