Unless some miracle happens there’s a lot of frightening news in terms of human casualties and economic data on the horizon. IRAs and 401ks are going to get wiped out. We shut the market down during the Spanish flu. Our country’s reputation won’t be hurt if we have a hiatus from trading. We’ve done it before and we should do it now.
Keep in mind if they do that people who need to take money out of the market (to survive, or for whatever) won't be able to do so. So while it might seem like a good idea just to keep the market from going down, that's a ton of liquidity that you are sidelining that people might need.
It’s a good point, however I would shut them down anyway. Mr. and Mrs. Jones that rely on the stock market for their retirement will be forced to watch their savings dwindle to next to nothing if we don’t.
Temporarily shutting down the market doesn't prevent a decline in stock prices.
Why would it not? In these times the market is not an efficient tool in reflecting valuations because of panic. Once the panic subsides then the market becomes more efficient. Bush shut the market down after 9/11 for that precise reason. I’m not suggesting companies aren’t hurting and the economy is strong, obviously that’s not true, but fear is also a part of the sell of. We’re likely headed for prolonged period of fearfulness. I expect them in the very least to eliminate short selling like they did on banks during the banking crisis. The market is down over 30% and the shit hasn’t even begun to hit the fan.
Why would it not?
People will stop trying to sell, just because the NYSE is closed? Why?
Panic will end? Why?
In these times the market is not an efficient tool in reflecting valuations because of panic.
You can't end panic by suppressing it.
shut down all forms of stock trading, including cross trading. That is implementable. You can’t suppress the panic, but you can suppress panic moves. That way when the dust settles peoples portfolios are in better shape.
So what happens if somebody needs to sell their stock to pay for a personal emergency? What happens if they want to transfer their money to a stock that's likely to move like something in the medical field?
I never said there weren’t negative consequences to it. For me personally, I’m in cash now and conservative assets. The market plummeting further won’t hurt me. I’m thinking of those poor people set to retire soon who won’t have anything because of this.
That's like saying freeze savings and checking accounts so the banks don't crash. It's not the governments place to freeze your money against your will. The market will bounce up, and it will go back down. This is going to happen for some time.
Think of it this way: If the government announced it's considering a freeze on the market, what do you suppose would actually happen to the market with everybody pulling their money out all at once?
