The stock market is being used as a source of funds right now which is not good....the largest players in the equity market have major major capital issues right now....AIG needs $70 Billion to survive, that is a HUGE number (Goldmans entire market cap is $53B...they basically need a Goldman and a half) and they are just one major player.....this is the point where stocks are no longer viewed as representing ownership in fundamentally sound companies but rather as a mere source of funds...a way to raise cash....you sell stock you get cash, thats what they need cash.....this is when it gets scary and stock markets crash, its when people become fearful of owning stocks as an asset class. after todays action you can tell real fear is developing in the market and people are really JUST starting to get a bit nervous about owning stocks....you're starting to see stocks that were worth $60-70/share go to zero....and these arent just any stocks, they were the biggest balls in the market....people are starting to think about what they own and what its really worth if panic sets in....i mean is it that far fetched to see AAPL selling in the 90s....the big boys could sell that stock off another 40 points down to $100 and funds would still be getting out with a profit...thats how you have to think right now....think about how much fund ownership your stocks have and know that those funds are having major problems and need cash.
Not my WORDS but thought I would post it here because it is true
MARKETJEDI
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