For a brief moment today the Dow Jones Industrial Average was down almost 1,000 points according to CNBC television coverage. Stocks have rebounded nicely since their lows but we are still down 500 points, or 5%, since the start of trading today. Over three days the market has suffered the worst loss in value since March, 2009.
Reports now are that the trading machines at the New York Stock Exchange may have broken down. Jim Cramer is speculating such since (he says) markets do not crash several hundred points in five minutes. We shall see. What we do know is that the market slid 700 points in about 20 minutes before regaining most of that crash.
Fox News channel is reporting that a “bad trade” for Procter & Gamble stock, in which the share price was mistakenly lowered considerably, triggered an avalanche of program selling. Procter and Gamble is a component of the DJIA. Minutes after the market crashed an additional 500 points, program buying kicked in to cover short positions in the market.
Whatever happens the rest of the day, traders are obviously very nervous. The Greek riot situation and austerity program is causing uncertainty in European banking circles, and that uncertainly is spilling into the United States markets because financial systems are so interlinked world-wide.
But long-term, President Obama’s policies on the domestic front are doing no favors to our economy. Employers are getting hammered with expectations of higher taxes, new government entitlements are smothering innovation, and reckless government fiscal policy is worrying everyone.
While it is too early to call the events of this week an Obama stock market crash, one wonders if we are on the brink.









May 6th, 2010 at 12:44 pm
Barack Obama is only a small part of the problem. The western hemishpere is now filled with fat and happy people who are about to get eaten alive by those more lean and not nearly so happy.
I will not waste my time blaming anyone, though. It’s time for each of us, if we are the people we claim, to step up and speak out and do. Speak out not against Obama but for limited government. Not against the Chinese but for America and AMericans.
May 6th, 2010 at 1:05 pm
DIVE! DIVE!! DIVE!!!
How much ya wanna bet that this “trade error” came from Goldman Sachs and their high-frequency trading algorithms?
May 6th, 2010 at 1:07 pm
BTW,
Stop watching Jim Cramer! He’s a b*stard! Neil Cavuto ROCKS!!!
May 6th, 2010 at 2:52 pm
Something seriously went wrong today at a very high level. No idea what caused the technical glitch, but we almost fell off a cliff. Time to assess…
http://blogs.wsj.com/marketbeat/2010/05/06/accenture-went-to-a-penny-at-248-pm/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+wsj/marketbeat/feed+(WSJ.com:+MarketBeat+Blog)&mod=marketbeat
May 6th, 2010 at 4:56 pm
That glitch is debt, the logical consequence of socialism in nations that have let the Christian values slip away.
May 6th, 2010 at 7:06 pm
I still think Goldman Sachs flexed it’s muscles showing how they can manipulate the markets with their neuro-algorithms. Makes a better conspiracy theory anyway!
May 6th, 2010 at 10:13 pm
Time to short the euro
May 7th, 2010 at 1:05 am
It’s your mom’s stock market crash, MCCAIN.
It’s raining today and that must be Obama’s fault too. He’s peeing too high and missing the pot at the White House.
May 8th, 2010 at 1:01 pm
Man what a week for the markets! I have been trading for over 20 years and have never seen the market take a dive like this week. I hope the investigation shows what happened. Funny thing though, I thought there were circuit breakers that suspended trading for a bit to let the markets settle down after a large point drop.