d for a severe fall? As institutions and people have to draw their money out and as calls and puts are purchased by the people who can do that to suck the market dry at each level it falls to?

The events of 1929 proved that unregulated capitalism is not a viable economic model.Regulated capitalism is, however, proven to be the best mechanism to creating the most wealth for the most people. Don't every forget that, or you will have a bitter lesson to learn when the money grubbers get in power and steal everything you own.

No. The market is a predictive mechinism, so if it were a given, it would have crashed already. Many people feel that it will crash, but enough don't believe that to keep it where it is.

There is no reason to believe that the stock market is in any danger of falling. At present there is more money on the sidelines waiting to get into the market than there are people and institutions needing to pull money out. We are now living in a world economy and the biggest threat to the world economy is a bursting of the China bubble, but there have always been potential threats to open markets, but on the whole the markets look poised to continue its business as usual.

Your reasoning is faulty.

Nothing is a given.And, the US government is not going to buy and sell stocks; not tomorrow; not ten years from now. After that, who knows.If you think the economy is that simple, you are misguided. Very complex. All predictions are fundamental wrong in scope, direction, magnitude, or timing.Cheers.

Hello new born. The stock market is very liquid. Where fear enters in (novice investors) people sell to prevent total lose or to rake in profits. When those stocks bottom out, money flows in (seasoned investors) and bargains are had. It's a give and take scenario. It's better for the US citizen to shore up our economy rather than sell debt to developing nations, i.e. China and others. If the America population lets this trend continue, one day you will be making your rent/mortgage payment to a China-man, Arab, or some other foreign interest group.