Your Understanding of the International Stock Market Collapse

[ThomWV]

Poll question: Your Understanding of the International Stock Market Collapse

I think how this question is answered tells a lot about each individual. Please note that essentially the same question has been asked in two different ways:

[tekisui]

1. All of the above.

[dipsydoodle]

2. I voted for the second option

because it may well relect both financial inability and also general unwillingness to deal with the USA for any financial instruments.

[Recursion]

3. The funny thing about systems with both feedback and feedforward...

...is that you can't simply assign causality like that. Stock prices exhibit both autoregression and averaging. In short, all of them are true to some extent, and since the system is decidedly non-linear you can't even say it's just the sum of the individual parts.

[Virginia Dare]

4. Thom, you are the expert so correct me if I misunderstand..

but the way I see it is that the entire world's economy was based on a series of bubbles on top of bubbles. At the bottom was the credit bubble in the U.S., which gave Americans a false sense of wealth, basically using their homes like ATM machines, and going out and buying anything they wanted and using credit to do it.

Once the real estate bubble in the U.S. popped, it was a cascading effect around the world, as all the other bubbles started popping in succession.

Am I close?...:shrug: