Why are Markets still Falling? The Tsunami caused by Derivatives and Deleveraging

Continuous falls in global financial markets is the link to the privately traded Credit Default Swaps (CDS) and the financial uncertainty they have created whilst synchronized deleveraging takes place across the world. Many CDS contracts have been triggered at their exorbitant notional or face value by a number of bankruptcies and nationalisations and as a result many counter parties are unable to meet their payment obligations which are becoming due week-in week-out in their hundreds of billions of dollars.

Markets are still falling because it will take many, many months for the bailout money that is being injected into the system to spread out and produce the expected results.