Posted on 05/06/2010 6:31:21 PM PDT by The Magical Mischief Tour
For those who don't have Bloomberg News on 24/7, the Dow just dropped almost 1,000 points, before bouncing back to . . . well, to being down a mere 400 points. What on earth is going on?
Immediate theories:
It was the computers, stupid. This seems likely to have been at least part of the problem; the drop was just too sudden, as was the recovery. Accenture dropped from $40 a share to one cent at some point, and Proctor and Gamble also had an improbably gigantic drop. I'd guess that some trading programs, somewhere, hit the wrong stock price level and went horribly wrong.
The market knows something that we don't about Germany. Now that Greece has passed its austerity plan, the rest of the eurozone has to go along. Germany, the single biggest player, votes tomorrow, and maybe someone knows we're headed for a nasty surprise.
The market knows something that we don't, but ought to, about Greece. Greek approval of the austerity plan should have perked things up. Instead, the markets are in turmoil. And maybe they're right to be. Passing an austerity plan doesn't guarantee that it will work; Argentina was going through governments like paper plates right before it terminated the dollar peg and defaulted.
(Excerpt) Read more at theatlantic.com ...
Follow the money.
if thats the case it should have gained more before closing...i thought it was paic
I was loading up in the car to go stock up on food when Rush started freaking out.
Tomorrow all will be revealed...
Deliberate manipulation or an attack on the market perhaps?
I weight in and say it was the elections in Britain.
Russian or Chinese hackers.
The reason the Stock Market went down today is because its called the "Stock Market" instead of the "Stock Always-Goes-Up Market"...
What the Hell Just Happened in the Market?
Reality is finally catching up...
Soros shorting P&G?
The turtle will get the prize. Trust Starr.
Maybe someone hacked the stock market’s computers, cyber terrorism?
Heh, actually, the Rabbit will get the prize - he who reacts faster will come out ahead. The poor Turtle would be me - losing in the market again...
Probably the smartest place to be.
Coke is it?
The last people who would understand the market are Communists like the ones who run the Atlantic.
Regardless of the “glitch” is not the market down 6% for the week? With Obama spending money like a drunken sailor things are not looking good for the long term.
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