I don't think the system is going to last under this pressure. Remember, stocks are indicators of what's going on in the economy, not the economy itself.

These big falls are from shaken investor confidence stemming from a few key causes.

1: The housing bubble crash & subprime loan scandal

Everyone started buying homes that are way beyond their means to pay, and corrupt bankers counted on them to default on these foreclosures to make them filthy rich as they keep turning around the property to new borrowers, etc. etc. It was only a matter of time before that led to a collapse of the housing industry.

2: Costs of Energy and Living

Obviously, these costs have gone way up without a corresponding raise in wages, which (coupled with those being foreclosed on), has made it much harder for the average american to spend money on more than what they need to survive. Thus, the economy slowwwwwwwwws down.

Those are the root causes. They, in turn, triggered these.

3: Credit Crunch.

Banks and people have less money, so banks are less willing to lend money to them. Our system depends on loans to create new money, according to the fractional reserve system, and money therefore is gradually losing its value. With loans slowing down, we could easily see a contraction on the horizon.

4:Consumer confidence, trust, and investor confidence.

Everyone's rattled by what's going on. Investors are hanging on every word the government says, hoping their precious investments are safe. Consumers are afraid of companies they rely on being crippled and the possibility that their employers won't be able to pay them, and gradually our trust in each other is being eroded.

What can we do to fix it?

I believe our system is doomed to collapse eventually, so the sooner it does, the sooner we can make a new, socially relevant system.

I won't say what system could replace ours, but I know socialism, free market trade, and communism aren't the answer.

If we wanted to keep the system, though, the only way we could get it running again is to nationalize a LOT of debt.

I'm not comfortable with that idea. I didn't do anything to deserve such a massive amount of liability.