Down computers choke up ten minutes before closing, closed with boos from traders.:laughing7::laughing7::laughing7::wave:
Stock market crash?
- Thread starter darkbeaver
- Start date
Dow down 462 points, dow jones claims problem with computers at about 4
m stockes frozen on the board for awhile.:wave:
m stockes frozen on the board for awhile.:wave:
Brutal day on Wall Street
Dow tumbles 415 points, biggest one-day point loss since 2001
http://money.cnn.com/
Dow tumbles 415 points, biggest one-day point loss since 2001
http://money.cnn.com/
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Dow Jones says problem with DJIA reporting caused dramatic decline; NYSE says trading was interrupted due to intermittent technical problems.
February 27 2007: 5:41 PM EST
NEW YORK (CNNMoney.com) -- As the Dow Jones industrial average suffered its biggest one-day point loss in 5-1/2 years Tuesday afternoon, traders were blind to the severity of the fall due to technical problems.
Dow Jones said that for about an hour it experienced difficulty with its system for reporting the industrial average's activity.
"Around 2:00pm today the market's extraordinarily heavy trading volume caused a delay in the Dow Jones data systems and as a result, the calculation of the Dow Jones Industrial Average temporarily lagged behind the market decline and as we identified the problem we decided to switch over to a back-up system and the result was a rapid catch-up in the published value of the Dow Jones Industrial Average," explained a Dow Jones spokeswoman.
When the back up system was activated around 3:00pm, the delay was eliminated and the numbers on the big board caught up immediately with the market activities.
"The drop lag that occurred in a minute should should have happened over a period of 20, 30 or 40 minutes," a spokeswoman said.
However, "investment products like futures contracts, exchange rate funds or mutual funds that use the index as an underline were not affected," the spokeswoman noted.
Separately, the New York Stock Exchange said intermittent systems problems disrupted some trading Tuesday afternoon.
"Trading towards the end of the day was interrupted due to an intermittent technical problem and that problem is being assessed as we speak," an NYSE spokesman said.
It is unclear whether the problems are related, the spokesman said.
The Dow tumbled 416 points by the closing bell, notching its worst point decline since September 17, 2001, the first trading day after the September 11th disaster. On that day, the Dow dropped 684 points.
http://money.cnn.com/2007/02/27/markets/selloff/index.htm?postversion=2007022716
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Technical glitches plague Wall Street
Dow Jones says problem with DJIA reporting caused dramatic decline; NYSE says trading was interrupted due to intermittent technical problems.
February 27 2007: 5:41 PM EST
NEW YORK (CNNMoney.com) -- As the Dow Jones industrial average suffered its biggest one-day point loss in 5-1/2 years Tuesday afternoon, traders were blind to the severity of the fall due to technical problems.
Dow Jones said that for about an hour it experienced difficulty with its system for reporting the industrial average's activity.
"Around 2:00pm today the market's extraordinarily heavy trading volume caused a delay in the Dow Jones data systems and as a result, the calculation of the Dow Jones Industrial Average temporarily lagged behind the market decline and as we identified the problem we decided to switch over to a back-up system and the result was a rapid catch-up in the published value of the Dow Jones Industrial Average," explained a Dow Jones spokeswoman.
When the back up system was activated around 3:00pm, the delay was eliminated and the numbers on the big board caught up immediately with the market activities.
"The drop lag that occurred in a minute should should have happened over a period of 20, 30 or 40 minutes," a spokeswoman said.
However, "investment products like futures contracts, exchange rate funds or mutual funds that use the index as an underline were not affected," the spokeswoman noted.
Separately, the New York Stock Exchange said intermittent systems problems disrupted some trading Tuesday afternoon.
"Trading towards the end of the day was interrupted due to an intermittent technical problem and that problem is being assessed as we speak," an NYSE spokesman said.
It is unclear whether the problems are related, the spokesman said.
The Dow tumbled 416 points by the closing bell, notching its worst point decline since September 17, 2001, the first trading day after the September 11th disaster. On that day, the Dow dropped 684 points.
http://money.cnn.com/2007/02/27/markets/selloff/index.htm?postversion=2007022716
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It won't, "once and for all". If it ever did, the economy would collapse.
But there's no reason to think this would ever happen.
Usually, it is the economy that sustains the stock market, not the other way around. Usually, the market is a discounting mechanism for the future performance of the economy. But sometimes the market takes on a life of its own and is disconected from the economy. I think that is what has been happening as of late.
The market has been getting ahead of itself recently. I've been expecting something like this for a few months now. I expect it to continue for a few days, at least.
The market has been getting ahead of itself recently. I've been expecting something like this for a few months now. I expect it to continue for a few days, at least.
Well, the stock market didn't always exist but economy has been there for a heck of a lot of time... So why would economy necessarily collapse if the stock market did? If it's the economy that sustains the stock market, why does the economy absolutely need the stock market?
Today's stock market plunge was a reaction to new Chinese laws which will reduce speculation on China's stock market.
When people borrow too much money to invest on the stock market (speculate), they are really gambling, not investing. Speculators can potentially make a great deal of money off the stock market, but they can also loose a great deal of money. If too many people speculate and the stock market dips, speculators are forced to sell off while they can still afford to pay their debt. That fear pushes stock prices even futher down. Eventually speculator panic can trigger a chain reaction of selling like the one we saw today or in an extreme case like the 1929 crash.
Too bad for all the speculators who lost money today, but over the longterm, the changes will be an improvement for investors.
BTW, when speculators sell in a panic that usually means its a good time for investors to buy.
When people borrow too much money to invest on the stock market (speculate), they are really gambling, not investing. Speculators can potentially make a great deal of money off the stock market, but they can also loose a great deal of money. If too many people speculate and the stock market dips, speculators are forced to sell off while they can still afford to pay their debt. That fear pushes stock prices even futher down. Eventually speculator panic can trigger a chain reaction of selling like the one we saw today or in an extreme case like the 1929 crash.
Too bad for all the speculators who lost money today, but over the longterm, the changes will be an improvement for investors.
BTW, when speculators sell in a panic that usually means its a good time for investors to buy.
If the stock market crashed, then the banks would be gone, you would have no pension, and probably be out of work.
Let's say you want to mine gold. You don't have enough money in your pocket to do it all. So, you form a corporation, and you get people to buy shares in this company. So now, instead of you owning the whole company but not having enough money, you now own part of the company, but others own part of the company. Now you can mine gold and make money, and share this income with the other people who own parts of the company.
Now what happens next week when one of those other people don't want to be part of a gold mining company any more? Maybe you don't want to buy out their part of the company. So, they sell there share to someone else...How do they find someone else willing to buy their share? It's called the stock market.
The stock market is simply an organized place where people buy and sell their shares in corporations.
Presented that way, I can certainly see why and how the stock market can contribute to stimulate the economy. But in the end, I still don't see how a stock market would be vital for an economy.
I freely admit my understanding of economic issues is considerably limited. But the impression I get is that the stock market has too much influence and I feel it's a wrong thing that the financial security of many should be put at risk because of the speculation of a minority of people.
Am I wrong to think there's something twisted about the stock market? In the gold mine example you gave, there is an initial action that is made in an entrepreneur way and I see it as team work, basically. But when people start making a living out of simply buying and reselling shares, is that really healthy for an economy in the short and long term?
TenPenny is correct.
Stocks have been traded for hundreds of years.
There is a saying in the market - the stock market has predicted 10 out of the last 5 recessions. A falling market may be a harbinger of bad things to come, or it could just mean that the market is falling.
In the near and even intermediate term, there can be a great disconnect in the stock market and the economy. For example, in nominal terms, stocks did not go up between 1966 and 1982, and in real terms from 1966 to 1991. Yet the US economy rose about 3% each year on average.
The economy isn't dependent on the stock market necessarily, but it may be. If asset values fall further than the debts to support the assets, then credit contracts, which usually brings a recession. That is a fear now because there is so much debt and money sloshing around the world. Also, a falling market can lead to lower confidence. The economy is all about confidence. Usually, when confidence falls, the economy slows.
Stocks have been traded for hundreds of years.
There is a saying in the market - the stock market has predicted 10 out of the last 5 recessions. A falling market may be a harbinger of bad things to come, or it could just mean that the market is falling.
In the near and even intermediate term, there can be a great disconnect in the stock market and the economy. For example, in nominal terms, stocks did not go up between 1966 and 1982, and in real terms from 1966 to 1991. Yet the US economy rose about 3% each year on average.
The economy isn't dependent on the stock market necessarily, but it may be. If asset values fall further than the debts to support the assets, then credit contracts, which usually brings a recession. That is a fear now because there is so much debt and money sloshing around the world. Also, a falling market can lead to lower confidence. The economy is all about confidence. Usually, when confidence falls, the economy slows.
And when the selloff gets going too fast someone pushes a button and it stops keeping the number lower than it should have been, in the morning it will drop like a lead pelican, we might see some traders hitting the pavement arround noon, I went out and got some popcorn and beer for the show tomorrow.:laughing7::laughing7::wave:
An asset market, be it stocks or bonds or real estate, is a signalling mechanism that channels capital into areas of high growth, taking away capital from sectors of the economy with slow growth. Asset markets price the risk and return associated with the allocation of new capital. They are vitally important to the long-term growth of the economy because asset markets supply the capital required for innovation and progress.
Stocks, over the long run, return better than most assets. Over time, stocks have earned about 10% per year while bonds have earned 6%. So, if you have $10,000, in 50 years, if you've invested in bonds, you'll have $184,000. However, if you've invested in stocks, you'll have $1.17 million. That's why pension funds, including the Canada Pension Plan, invests in stocks.
The constant buying and selling of stocks may seem pointless to those outside the market, but what is happening is that market participants are supplying liquidity and pricing risk. The more liquidity in a market, the better. Think about selling $200,000 in stock or selling your house for the same amount. You can sell $200,000 in stock in a few minutes, and it might cost you $100-$200 in commission. If you sell your house, it will take on average 4 months, which means you'll have a cost to carry, i.e. upkeep, utilities, mortgage, taxes, etc., then you'll pay $12,000 to a broker to sell it. It may cost you up $20,000 to sell your house. Compare that to the $100-$200 it might cost you to sell your stocks. And the reason why it costs you 1/100th to sell stocks than it does your house is because there are millions of people buying and selling stocks every day. That money goes directly into your pocket and makes the world more efficient.
Tomorrow will be fascinating!
http://runningofthebulls.typepad.com/
Apparently, the NYSE couldn't get all the orders in and there are more sales to go on the open.
Japan is down 655 already tonight, or nearly 4%.
I'm happy that your handsome self knows what your handsomeness is doing. Are you looking to a good day on the morrow? Neat clean web site.I think I'll pay attention and learn something else.
Were there anyother glitches in anyother markets with the volumn today or was New York alone in that trouble?:wave:
Were there anyother glitches in anyother markets with the volumn today or was New York alone in that trouble?:wave:
Canada Penion Fund managers buy tobacco stocks and weapons stocks eh, that's why it earns good
money.:wave:
money.:wave: