Mr. Market, are you sure we know everything about the problems?

Look at the ugly stock markets in US, Europe and Asia. What's wrong? The so-called subprime mortgage defaults that triggered the storm from early 2007 have been with us for more than 12 months. Bear Stearn was bailed out very quickly in March and then, LB is not showing up any dangerous problem. Recent data don't prove the US is in recession and in fact, the Fed's last Statement said that economic activities and growth were improving. Emerging and developing markets are not showing signs of recession or even slowdown. So what's wrong?

Yes, oil prices are at record high but we have not seen any real collapse in the consumer market. Food prices have been flying up and up but most retail markets are still strong or very strong. Inflation is becoming serious but it has not killed anyone yet.

Then, why are the stock markets falling? We have withstand all the bad news so far and many famous guys have been telling us the worst is over. So why are stocks falling?

As a layman investor, I suspect that there are more serious problems lurking behind and we just don't know. May be the Fed, the Treasury, the ECB, BOE and other authorities know better or a little better with the half-truth that they have. There must be some serious problems hiding somewhere. Should Wall Street know even better? Would somebody go and find out the whole truth for us?

Who is withholding the full picture? Oil and commodities prices are flying up and up. There must some strong reasons other than strong demand, limited supply, speculation, etc. There must be some strong reasons why oil is over $140 a barrel or why iron ore prices are double or going to be double this year.

We hear the credit crunch everyday but surely there is just too much liquidity outside. Look at the poor low interest rates around the world. Even with the recent rate hikes in some countries, interest rates are still pretty low. We hear that the US housing market is falling every month but the data released still shows encouraging signs. It is not collapsing since the outbreak of the subprime mortgage crisis.

Would somebody tell me what is wrong? Are there some threats, some viruses, or some plots moving behind the poor stock markets? When stocks are falling to new low without a good reason, then Mr. Market, you know we have not learnt everything yet!