Since most of you on the left do not understand basic financial analysis and why the market collapes is directly related to Obama and his policies - here is a quick brief.
Stocks are technically (there are many methods to value stocks but I am going to focus on technical analysis)(highly simplified) based on a formula of: Forecasted Earnings X Segment Multiple / # shares outstanding
Each segment (example Utility or say a Growth stock like google) has an assumed "Velocity of growth" which drives the multiple.
So ..if you have a utility your growth is not going to be great - so lets say the multiple is 8 .
If you have 1M shares outstanding and your FORECASTED per share revenue 3 years out is $2 then your stock is worth $16
So anything that may impact the FUTURE revenue of your stock impacts the share price NOW.
(you don't want to buy something now for $1 that will be worth .50 in the future)
First we had the issue with the bad loans (argue which side is responsible for that.) When it looked like Obama was going to win the market started to tank. (check the poll # and track that against the Market value). This is because his taxing policies and his view on business in general would negatively impact the FUTURE Earnings of businesses.
Then we had an attack on the US financial system with massive 500B selling of money market funds which shook the financial system even further and had Bush do the TARP. This impacted the FUTURE potential earnings as the lack of liquidity impacted a businesses ability to borrow funds.
The real impact hit with Stimulas package - which had a massive increase in taxes (cut a little now - let the Bush tax cuts expire which will increase EVERYONES taxes and then add to the 250K guys which are mostly small businesses which will further erode the economy)
So the FUTURE earning are now bleak - and the banks are selling their assets to cover both the bad loans AND the money market sell off.
Stock prices fall - assets are worth less - sell more to gain cash on hand - forcing stock prices to fall - add to that Obama bad mouthing the economy so individual investors bail out - stock prices fall - Future earnings impacted - Stock prices fall.
A "perfect storm" of outside influence (foriegn selling of the money markets (where is THAT investigation)) shooting ourselfs in the foot (lets let all the poor people borrow over their heads - thanks Barney) and horrible fiscal policy for the future (thanks Obama)