Coronavirus crash: The Dow had its worst day since 1987, plunging about 10%

Originally published at: https://boingboing.net/2020/03/12/coronavirus-crash-the-dow-had.html

Dow’s 4th-worst loss in history

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Not good, and made exponentially worse by the ton of bad economic news coming in the next few months as economic activity gets shut down.

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Huh.

Funny old thing. It turns out that facts really do matter after all.

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Since I found myself looking for this number in the reporting but wasn’t seeing it:

in 1987 the DOW fell 508 points for a 22.6% overall drop.

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It’s less of a comparison when you put that number in. Which means fewer clicks. And less ad revenue. Are you trying to kill the economy?

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Waiting to see how long it takes for Trump defenders in my other groups to dismiss this using “10% is FAKE NEWS” because the number is actually 9.99%

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I doubt Putin cares anymore who wins in November, Trump is fucking this one up all by himself.

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Thanks, Obama!

(yes, /s)

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I was on pace to retire at 55. I am now retiring at 128. :face_with_symbols_over_mouth:

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And with the occasional downward spike caused by Trump saying something incredibly dumb and wrong…

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Isn’t a huge chunk of this volatility due to automated trading? One minor swing triggers a bunch of algorithmic responses which then cause more extreme swings and so on - since the algorithms were likely not programmed with this kind of crisis (let alone pandemic) scenario in mind? This isn’t humans sitting at their desks calling in sell orders. Anybody know about this kind of fin tech? I feel like automated trading has been a huge part of turning markets into full-on casinos, since they are not necessarily responding to the merits of company A over company B, but taking cross-industry inputs and such and just placing bets. Not my speciality, but I’ve long felt that this aspect should be in more business reporting since the Dow is such a sham of a metric.

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This sounds like an automated response.

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HFT is profit taking based on price arbitrage pure and simple. When 2% of traders represent 80% of volume, you know there’s a problem somewhere. Front running is also still a major issue.



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The market is not automated. At all. This a futures response to how much losses will become and re-evaluation on the profitability of various business and industries. It is also effected by people moving assets from investment vehicles to liquid Or stable holdings (like gold or money markets).

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So, four weeks ago, the stock market was over 29,500 points. Today its 21,500 points. A decline of 8K. or 27.1%. The market crash of 1929 was for roughly 24% (total) over two days.
My question is: when are the rich dudes going to start jumping out of windows?

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Not fucking soon enough!

Sorry, “happy” hour drinking.

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They didn’t jump then, they won’t jump now.

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High rise windows are different now.

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