The main question I have about the collapsing smoke and mirrors financial "house of cards" that inflated book valuation based debt has wrought upon us, is why does a collapsing share market indicate a recession?? If the capital value of your share holding has shrunk, which let's be honest, is somewhat based on perceived value, then why does that dry up people's income's? How does that stop business being able to produce / manufacture wealth?? And another one, why are banks collapsing purely on the basis of the shrinking book value of their assets that were securing their debts???? If every bank is in the same straights, all they'd need to do is not call in each others loans and banks could get on with the job of paying off principal in the short/medium/long term and geting themselves on a better footing - surely? Am I making this way too simple? ?? While I have your eyeballs, I'd like to give all the economic rationalist "the market is right" mofo's a big feck you very much for the biggest crash since the great depression. <insert highly expletive emoticons here> When I went for my house loan, my credit union would only lend me the equivalent of what 40% of my after tax income as a monthly repayment over 30yrs comes up to at 2% HIGHER than the current interest rate... that's quite a few levels of conservatism. It made sure that they and myself (while I was gainfully employed) never ended up in serious financial straits. Plus they also wanted 15% minimum security as well. The likes of the big four were willing to lend me about 5 times what my conservative credit union was willing to lend me... and they were throwing all kinds of debt structures at me to help buy something that I couldn't truly afford. If more financial institutions took the same line as my credit union, we'd have lower house prices and there'd be far fewer defaults. Way to go Gordon Gecko. :roll: /soap box off.