The market continues to spread depressed and suicidal feelings throughout the investing community. The theories on when it will end and how it will end and what the causes may be are as diverse as the fish in the sea. But a few valid arguments opined repeatedly by different sources lend credence to their veracity.

Among the many rumblings of discontent is one that is increasingly heard. As companies that financed in the heydays up to 2006 start running out of capital, and as the terms for financing get tougher and tougher, the value for investors is severely crippled, and many financings are being cancelled or quietly shelved.

Deciding not to accept terms that are severely dilutive to existing shareholders is noble indeed, but not paying the bills is a tougher side effect that can result in the same outcome. It has been my experience as a past CEO during the Dot com glory days, that when the financing dries up, and you can't raise a dime to save your life, the knives come out and heads are sought. The driving force of the witch-hunt is inevitably the board members and larger shareholders.

It doesn't matter what you say or do or what the market conditions are, blood must be had by irate investors who need somebody to blame for their losses. Market conditions are scoffed at. They will point to this company and that company who are successfully raising money and forging ahead. And many perfectly competent CEOs will fall in the great purge of irrationality dominating markets in rough times.

That is not to say that there are not leaders who, inexperienced or naïve, spend like drunken sailors on flashy advertising campaigns and opulent digs when traveling, who should be criticized for their pecuniary infidelity and financial stewardship.

Cue Resources (TSX.V:CUE) recently saw its management team resign after primary investor Longview Capital, run by Damien Reynolds, flexed its muscle to appoint Mr. Reynolds as president and CEO following its original $2.8 million financing at $0.70 being reduced to $1.77 million at $0.40, which is subscribed for in part by Longview Capital, who now owns over 19% of the company's outstanding shares.

Other notable resignations recently include that of Gordon Thompson of Crystallex, whose tenure at the helm of the struggling company was marked by difficulties in establishing the 17 million ounce Las Cristinas mine. Permits for the mine were rescinded by the Venezuelan Ministry of the Environment citing risk to the Imataca Forest Reserve.

Management performance optimization is not the only cause for resignations.

Onco Petroleum Inc (CNQ:ONCO) in one of the first scandals of the nascent CNQ's limited history, is the subject of investigation by the Ontario Securities Commission following the "suspension" of its CEO Robert Vanier and Treasurer Terri Ramage. Turns out the bulk of the $17.3 million was allegedly doled out to them in what appears to be a case of creative embezzlement, though no such charges have been levied at this point.

The bottom line for investors here is you might want to have another look at your investments, and the soothing statements coming from companies on the verge of financial insolvency might best be ignore in favour of a closer look at the last financial statements relative to the last financing.

Whereas its painful to sell stock at a loss, its worse to watch it get suspended or halted indefinitely or worse yet - you open your stock ticker window and its says "defunct" beside your favorite symbol.