The way all the bubbles burst

Predictions about the future determine today's share prices - that is basically how prices are named on the stock market. Currently the US financial crisis is causing havoc in stock markets all over the world, sending share prices up and down like crazy and foretelling the global economy is heading deeper into a fog so thick one can predict nothing but uncertainties.

And such uncertainties directly reflect that the physical economy is "no longer the buyers'" and the financial economy is "the dysfunctional lenders'."

Today the US financial crisis is characterized by "securities and banking crises". In a nutshell, a "securities crisis" is a typical "borrowers' crisis"; while a "banking crisis" is one of the "lenders". A "securities and banking crisis", therefore, can be seen as a "financial system crisis" that assails both the borrowers and lenders.