Today...who's responsible?

"U.S. stocks slid, erasing an early rally, on concern lawmakers will phase out a tax credit for homebuyers and Bank of America Corp. will have to sell shares to pay back its government bailout."

This is basic Stock Market 101 stuff but I still don't know the answer other than that I personally believe the whole thing is totally manipulated(ie:AIG)...but by whom?

So...who sold it all off today? Did any of you here think OMG I got to sell right now "on concerns lawmakers will phase out a tax credit for homebuyers and Bank of America Corp". No. Who specifically is reacting to news & making the market move?

Personally I don't like the influence the gov't has on this market right now.

We've essentially created a psuedo-bubble with all the extra liquidity the gov't put into the market. Had they not done that we'd definately be lower but any recovery we'd be seeing would be real recovery. It's kind of funny how any mention of taking the bailout away sends stocks plummeting. It just shows that we're NOT in the clear yet.

All we can do is trade with the flow.

Today's action was plain and simple a result of the dollar rally. The question is, what caused the rally. When the dollar is stronger, it devalues assets denominated in dollars. so there is an inverse relationship. Stocks are as high as they are because of the weak dollar.

First of all it was short covering, but what was the initial impulse that set off the firestorm?

My theory is central bank intervention. Perhaps it is our own Federal Reserve which is buying up dollars. With all the talk about the US Dollar losing it's status as reserve currency for other nations, it would be in the Fed's interest to try to put an end to the dollar's downward spiral. I'm sure they have the authority to buy dollars as needed. They could support the value of the dollar by raising interest rates, but because of the recession that option is off the table.

I'm not a currency expert and my theory is just that, a theory, but I would like to get a dialog started among those who are more qualified than me to discuss the possibilities.