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Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,763,471 times
Reputation: 3587
10% would be a disaster. Think about a 1200 point plunge. That should require more than a 30 minute halt. Any drop of even 5% should close the market for the day and give people some "cooling off" time to think about things.
10% would be a disaster. Think about a 1200 point plunge. That should require more than a 30 minute halt. Any drop of even 5% should close the market for the day and give people some "cooling off" time to think about things.
If anything that would set a panic in for the next day. When you lock out access to people's money (investments) that makes them want it all that much more and fearful that they won't be able to get to it at a later date.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,763,471 times
Reputation: 3587
Quote:
Originally Posted by HappyTexan
If anything that would set a panic in for the next day. When you lock out access to people's money (investments) that makes them want it all that much more and fearful that they won't be able to get to it at a later date.
I agree that it could do that but it would also give the President, the Fed and other people like Jim Kramer time to try to cool things down. This worked really well a few months ago when overseas markets fell drastcially and everybody was expecting a disaster on Wall St the next day. The Fed got on the ball and did a big emergency rate cut and Jim Kramer got to the trading floor and on TV before opening and calmed people down- and our markets only fell a little that day. If people have time to think about things rather than get into a mob mentality, they often decide things are not that bad after all.
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