Reply #6: It's not just about the DOW, it's about lending banks going insolvent. [View All]

[Poll_Blind]

Sure it'll affect the DOW but right now we're looking at major bank failures. One in Atlanta just a few minutes ago, one in Germany (a major bank) which had to be assisted by another bank. Don't know what the bank situaiton in Asia is like but their markets are taking a big hit (~5% a few days ago).

I don't have time to fill in all the particulars but you can read most of it here on DU in the news over the last few days.

To recap though, this is not a typical "drop" in the market. It's about a credit bubble bursting. Institutions loaned out billions of dollars to risky clients & institutions and those are not able to pay now. That causes a money shock which goes far, far deeper than a regular drop in the market.

Hope that made sense, took about 3 minutes typing this up so your mileage may vary.

PB