Why markets are falling ..new late night theory

TRUSt_NO_1_2

ok ...the banks have lent money to people who have no money,no income.
So why should that affect the whole of 'industry' ?
!!!!!! the UK government is making £500 billion available.

If the banks are short of a few quid,why can't the government lend to industry and homeowners directly and cut the banks out of the loop ?
The US have bailed out General Motors.They have Fannie this and Fannie that.

This is not about mortgage arrears !
They could offer mortgage support to the whole country with £500 billion !


I think the underlying factor to the crisis is because many of the stock markets around the world have become so corrupt through naked shorting, by very organised criminals,that they are technically bankrupt through undelivered shares and the whole financial sytem is grinding to a halt.
The banks all naked short.They all know shares will not be delivered,but in the good times it was 'after you Claude'...'no please after you,I made £10billion yesterday'
On top of this you have the 'grey' market in derivatives.
So every financial institution is low on capital through irresponsible lending and may have 'open' positions on the stock market that they know are likely to fail through naked shorting or are staying out altogether as the naked shorters go for broke.So they are preserving capital when the chain reaction of failures starts,in the hope that as they are the fittest (biggest) they survive and 'clean' up.

Caudle

Why markets are falling

One word................ FEAR! :eek:

Mainly fear of not being able to make a profit on your shares.

No more, no less. Always been that way, always will be.

We've had a decade or so of artificial growth and our memories are short: we remember the good times and want them always to be good. The fact that such artifice can't continue indefinitely takes a bit of getting used to. And that is what has caused the fear.

purch

This is not about mortgage arrears !

The Credit Crunch, Subprime, BTL etc etc are all symtoms of, not the cause of the situation.

The Trillion $$ OTC Derivative market is the root cause of the ongoing destruction of our Financial system...and yes the Stock markets around the world are corrupt to a degree, as are many of the other Financial Markets that we all put our faith in.

Insider dealing is still commonplace, and the merging of Banks, Investment Banks and Brokers into large megoliths with huge leverage, along with Hedge Funds with incestuous links into these Institutions, has only compounded the issues.