Did the stock market crash because the banks were failing? How do failing stocks affect the economy?

In words that I will be able to understand, can anyone explain to me the correlation between the banks, the housing crisis, and the stock market. And how does the stock market affect the economy itself? I am just beginning to understand what the stock market is, so numbers and statistics are really not helpful.
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Why does the news seem to affect the stock market more now than in the past?

When bad news hits, the market drops significantly. We already know about the mortgage problems, that the banks are hurting and so forth, yet when this is on the headlines, people panic. What’s the deal?

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How will the recent news about the stock market affect me personally?

When the Dow Jones average falls it seems to get everyone concerned. What is the connection between the stock market and the average consumer? I know its harder to get a bank loan, right? And how are we looked upon by other countries?

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How does stock investment affect financial aid?

I am 18 and have taken a year off before attending college. I am interested in starting short term stock trading but I was wondering what affect this would have on my financial aid. I am still considered a dependent of my mother and her adjusted gross income is pretty low.

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In Forex what news affect the price of the currency?

What news would raise the price of any currency in exchange of other currencies?

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Does prepayment risk of mortgages affect excess returns of bank stocks? The evidence suggests that it does.: An article from: Business Economics

Product DescriptionThis digital document is an article from Business Economics, published by Thomson Gale on January 1, 2007. The length of the article is 5566 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after [...]

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How does the housing market affect the stock market so much?

I heard that the housing market being low in sales and with the forclousure market crashing, it is affecting investors so much that they are moving money out of equities (stocks) and investing more in safer investments. Thats why the stock market has been down so much in the past week.
How does this happen? [...]

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The 10 Factors That Affect and Predict Stock Prices

This is the most frequent question that most stock/options traders may have in their minds. Stocks price changes due to market forces, i.e. buying and selling of the available stocks in the market.  The following are the factors that affect or even predict the buying or selling of stock that ultimately affects stock prices of [...]

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