Do you think market activity is specifically interpreted or spun in order to further manipulate the market?

Question

Is there anyone else out there that thinks that the stock market is dropping not because of mortgage rates but because of corruption? If so do you think that there are those who are trying to stabalize the market when it actually should fall a little bit, to reflect peoples disgust and distrust of corrupt corperations manipulating our buisness and political environment?

Answer 1

Do you actually believe that politicians want to get into office to help fix problems? Everyone is out their to rip a $$$$$. The best way to make a lot of $$ is when people panic, that goes in business and politics.

Answer 2

My take is that the market is a victim of trigger happy investors. Keep this in mind...it's all based on supply and demand. If investors hear negative news about companies, they want to sell their investments. Put several investors together selling the same investment and the price goes down. This escalates an already present problem.

For instance, the subprime lending has taken a hit because of foreclosures. For banks who are active in the subprime lending market, they are losing money. No investor wants to buy the stock knowing the company is a loser. Investors will sell. This leads to lower bid/ask prices.

One additional thought. Don't just think about individual investors. There are several mutual funds out there that own thousands of shares in this market. If those funds are selling their shares to recognize the necessary return, that deflates that stock price that much quicker.

Stock price is only determined by company value (directly) once...that is during the IPO. After that, it's all supply and demand. I wonder what would happen if we didn't panic at bad news and held our position through the rough times? Would we lose less money? Would the market remain flat? That's the beauty of the economy. Investors want to make money so they are constantly buying and selling. It keeps the market from being boring.

Answer 3

The nice thing about the stock market is that it always rolls along efficiently, regardless of idiotic interpretations like this. The market was overbought, period. A correction should have been expected. If you missed the signs, then keep your money in a bank savings account.