This article is very misleading, though the basic argument presented is sound and worth considering.

The problem I find with the article is that it seems to imply that the markets can work, given a chance. It implies everything is on the up and up, and given less financially stressful times, there would be a better outcome.

There is nothing further from the truth.

The markets are as corrupt as human nature would seem to dictate.

These cyclical market crashes exemplify what will always happen given this level of complexity, and the temptation and ability of individuals to affect gains by what is generally best described as theft in the broad spectrum of human nature.

This theft instinct is not just common, but actually a latent driving factor in human nature as it affects all economics.

What is overlooked in the article is apparent in the title, Hedge Funds' Derivatives Exposure and Margin Calls Driving Stock Market Crash.

Hedge funds are not merely responsible for the stock market "crash". Hedge funds were also responsible for the huge market rally that happened just the other day.

The market is being repeatedly pushed up and down.

Whether the market goes up, or down, huge fortunes are being accumulated by those who move it thus, and move it thus they do.

The market goes down more right now due to the panicked nature of the accumulation (theft) of the capital exposed in the markets, as the article points out, especially by hedge funds that are under extreme pressure to raise capital for the reasons described in the article.

And also, because of the panic of other less well informed and capitalized investors, making money as the market plunges, stranding some investors who mis-read the head fakes of the previous day, is easier.

It's easier simply because there are many more investors right now who are likely to believe the market is going to plunge out of sight, than there are investors who would believe that it will recover unbelievably, as it did just the other day.

The real moral danger isn't the ongoing theft (by manipulation of the markets) we can uncover and describe today.

The greatest moral danger is that we would re-substantiate as essentially legitimate by our discussion of the markets, the very same corrupt mechanisms that have delivered the entire world into such a perilous place.

The market system is corrupt and immoral. There is no justification for any continuance of the American financial market system as it exists today.