All the markets are presently under the full and complete control of computer trading systems or individuals with a lot of money, or simply aggregations of day trading pajamahadeen wannabees.
A French bank this morning stopped payments from a French bank regarding accounts with less than $3 billion.
That's chump change.
Still, world markets reacted in panic.
At the same time it rained across the cornbelt this week from Nebraska, through Iowa, Illinois, Indiana and Ohio creating the mother of all bumper crops of corn. Even ethanol futures dropped.
There was a time that rain would have rattled world markets.
I think even the Chinese are on vacation in August these days.
Yes, there is some panic in the world markets..that is how crashes occur. A little disaster causing panic out of all proportion to itself is the leverage principle in action. Hope this ‘subprime’ failure does not cause panic and destruction out of all proportion to itself...the issue is playing out and has not reached its peak yet.
......I think even the Chinese are on vacation in August these days.....
Which could mean the second and third stringers chained to their cibicles got rattled when the first stringers are away.
Yes...we are still in the summer doldrums. There's always some doom-and-gloom story to make the market tank in the summer.
Watch the market rebound to 14000 in Sept.