candycorn
Diamond Member
With the GM bailout, quantitative easing, etc... I think the cat may be out of the bag as to government intervention.Market circuit breakers which are set by the exchanges help to stabilize a market so when there is major market fall, traders anxious to clear their position do not add to the collapse. For example, if the price of the Standard & Poor 500 index falls 7% from the previous close, trading of all stocks on the two major U.S. stock exchanges – the New York Stock Exchange and the NASDAQ is suspended for 15 minutes. If it drops an additional 6%, trading halts for another 15 minutes. If the S&P 500 drops a further 7% – for a total drop of 20% then trading ceases for the day.They need to shutdown the stock markets until next Monday.
They likely will in the next couple of days. Honestly, I thought it would be closed today.
Bank holiday is definitely coming.
The chickens are coming home to roost.
They aren't ready to hear about a "bank holiday".
If the market is closed too long, it can give the signal that American markets are not free of government intervention and that they are unreliable. In general, investors prefer the market is open during major falls so they know at all times the value of their portfolio.
While temporary halts to trading gives market participants time to parse information and make more levelheaded decisions, a shutdown could cause real damage to U.S. investments in the long run if they’re seen as less of a haven to global investors.
Possible. Long run considerations are great. But someone who is losing $10-50K of their retirement at the age of 58 is probably not too worried about what the Sultan of Brunei is doing with his portfolio.