Here is what a poster said this morning, what do you think of his observations?
From: carranza2
It's not really fear but some very serious, very real global conditions: the bursting of the Chinese stock market bubble, the bursting of our real estate bubble, peak oil leading to higher oil prices, the hedge funds and the cowboys who manage them, the unknown effect on mortgage markets of the subprime fiasco-in-the-making, the consequent inability of the US homeowner to use his bubblefied home as an ATM, Iraq, Iran, the unwinding of the Yen carry trade, etc.
Put all these ingredients into a bowl and we get a very toxic soup because it signals two things: decreased global economic activity and consequent stock price collapse. But the stock market collapses happen now, ahead of the economic collapse, because stock markets are predictive.
Also...
You keep talking about liquidity, do yo think liquidity will stay the same after the drop this week. Are the Japanese and Chinese willing to take more risks?
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