you just have to laugh at them , page-9

"Unfortunately nobody really knows"

My opinion:
The mining sector weakened in the beginning of May after Rudd commented about controlling Chinese investments in the resource sector. Chinese companies were asked to re-submit a number of proposals. Surely that would have a major impact on companies they are about to invest in and also those that they have invested.

The removal of this buying support is a major blow to improving the SP, afterall who is going to pay a premium. Just look at MIS, struggling at 40c before SINO took interest in it and SP now over $6. It is also possible that some Chinese divestment occurred.

The US subprime problems have been around for some time and financials have already taken a battering. The resource sector has been shielded by the premium buyers (Chinese), but when Rudd knock them over, the outlook for astronomical gains are limited and is time for some to cash in and move on to greener pastures.

Unfortunately, concentrated selling occured in a small window triggering margin calls that lenders were unable to quickly respond. Brokers went broke, shares were seized and dumped. During those times, stop loss and technical factors fueled the domino effect.

Technical selling.
Failure to make a higher high (no premium buyers) - sell.
Stop loss triggered - sell.
Support level broken - sell.
Can't pay margin calls - sell.
Brokers failed - big sell.
Lower lows - sell.
Momentum (moving averages heading down) - sell.

In between all that;
DJIA fell (fear of 1987 repeat) - sell.
US subprime fallout re CNP, AFS,ABC ,etc - sell.
CGT netting - sell.
Salary mining entrepreneurs cashing in - sell.
Non-resident realised appreciating AUD$ - sell.

Any we wonder why the SP tanks!!