Why is the stock market constantly crashing?

Question

Why is it that 3 days in a row the market has crashed?

Answer 1

a 5% change isn't that bad. crashes are 25% across the board.

Answer 2

Does the stock market keep crashing???? How come after 12 years of active trading, I never seem to experience any real "crashes"? Just look back in the 90+ years history of the Dow... when did the worst "Crashes" not eventually come back and go much higher? So, overall, there is no such thing as a crash as a big pullback usually precedes a big rally. I have never seen a real crash in the stock markets so I don't understand how you arrive at such a conclusion.


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Answer 3

The market has been erratic for awhile (more than 3 days ) ,
Because all the people defaulting on the mortgages ,
Means lot of investors ( regular folks in IRAs and 401Ks and other mutual funds ) will be loosing $$$$ because they will NOT get back the $$$$ they put up for those mortgages .

Those house loans did NOT come from a magic $$$ tree ,
They came from real people who are going to feel the repercussions . . .

AND a number of corporations were doing mergers and others loans that were as flaky as the sub-prime ARMS soooooo
Businesses are going to be dealing with those debts they can't pay either !

Big fun coming in the old town this year . . .

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Answer 4

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.investingtutorial.info/

wish it will help you.

Good Luck , Best Wishes!

Answer 5

Because 'ol George W. Bush is the president. He doesn't know how to run the country. It will get worse, too.

Answer 6

For every seller, there is a buyer