I don’t think the market collapse is related to the election. I think it’s related to the fact that the credit derivative scheme has been exposed and the over leveraging has been exposed, and the market is seeking the actual value.
The housing market, we all agree, was falsely inflated by easy credit… Now it’s correcting back to a more sustainable median price.
The same is true of the stock market – it was so out of wack with reality – with goods produced, with tangible value behind the price per share… And now it’s correcting.
So much of the market seemed to be related, by a few degrees of separation, to mortgage backed securities and securitized credit.. Look at AmEx’s statements begging for government money… they weren’t in the mortgage business – but they did bundle the credit debt into securities – and that market has dried up.
I don’t see how the election caused this particular mess… seems like those whiz bangs on wall street, who literally figured out how to make money out of nothing with these derivitives, are more to blame.
