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lateStarter
Light Sweet Crude
Joined: Apr 06, 2005
Posts: 1004
Location: 38 km west of Warsaw, Poland
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 Posted: Fri Oct 19, 2007 2:35 pm Post subject: Limit on fall of DOW in a day? |
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Just curious. Are there caps in place to limit the amount of the fall allowed on any given day? At what point does the door close for the day when things head south? There must be some sort of limit in place to allow TPTB to regroup and make an effort to contain the meltdown, right? Forgive my economic ignorance...
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americandream
Light Sweet Crude
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Joined: Oct 18, 2004
Posts: 1950
Location: kiwibush
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| Posted: Fri Oct 19, 2007 2:51 pm Post subject: Re: Limit on fall of DOW in a day? |
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Trading is suspended in times of sharp and volatile declines, and no doubt, covert manipulation is the order of most days.
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Bugger me, I hear oil's runnin out mate! |
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lateStarter
Light Sweet Crude
Joined: Apr 06, 2005
Posts: 1004
Location: 38 km west of Warsaw, Poland
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| Posted: Fri Oct 19, 2007 2:59 pm Post subject: Re: Limit on fall of DOW in a day? |
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| americandream wrote: | | Trading is suspended in times of sharp and volatile declines, and no doubt, covert manipulation is the order of most days. |
Who decides what constitutes a 'sharp and volatile' decline? I understand the concept of the PPT, but at some point, when things get out of hand, someone will pull the switch. In a true free-market economy, that would not happen, but we all know what a 'free-market economy' means today...
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Remember, with globalisation "everyone is a winner" in the "race to the bottom". - rogerhb
Any sufficiently advanced technology is indistinguishable from magic. A.C. Clarke |
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emersonbiggins
Moderator
Joined: Jul 10, 2005
Posts: 5086
Location: Dallas
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| Posted: Fri Oct 19, 2007 3:16 pm Post subject: Re: Limit on fall of DOW in a day? |
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This Wiki graphic defines what type of trading curbs exist and when they take effect.
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"It's called the American Dream because you'd have to be asleep to believe it."
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raober
Tar Sands
Joined: Aug 18, 2007
Posts: 25
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| Posted: Fri Oct 19, 2007 3:17 pm Post subject: Re: Limit on fall of DOW in a day? |
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Funny you should ask...
| Quote: | Thanks to protective measures put in place after the '87 crash, the market has not since experienced a one-day decline of the magnitude of the 1987 crash. The infrastructure was on display most recently this summer, particularly during unusually heavy trading in August, when anxiety about the credit market crisis came to a head.
Two factors protect investors from another crash: the circuit breakers and the Federal Reserve.
Updated quarterly, the NYSE's current rule is that if the Dow plummets 2700 points in a given day - a loss of 20 percent - the market shuts down. If this happens before 1 p.m., the closure lasts two hours. If it happens between 1-2 p.m., the shutdown lasts one hour. If it happens after 2 p.m., the market is shut down for the day.
A 10 percent decline triggers similar measures. The maximum the Dow can lose in a single day is 4050 points, or 30 percent. Should that happen, markets shut down for the day. |
CNN |
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lateStarter
Light Sweet Crude
Joined: Apr 06, 2005
Posts: 1004
Location: 38 km west of Warsaw, Poland
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| Posted: Fri Oct 19, 2007 3:39 pm Post subject: Re: Limit on fall of DOW in a day? |
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Thanks for the scorecard. Lets see how well it works in the days ahead.
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Remember, with globalisation "everyone is a winner" in the "race to the bottom". - rogerhb
Any sufficiently advanced technology is indistinguishable from magic. A.C. Clarke |
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BobWallace
Heavy Crude
Joined: Oct 01, 2007
Posts: 187
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| Posted: Fri Oct 19, 2007 3:48 pm Post subject: Re: Limit on fall of DOW in a day? |
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You think we've got a good buying opportunity heading our way?
'Bout time. The piggy bank is getting full.... ;o |
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WhatMeWorry
Tar Sands
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Joined: Aug 24, 2007
Posts: 63
Location: Salt Lake City
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| Posted: Fri Oct 19, 2007 4:10 pm Post subject: Re: Limit on fall of DOW in a day? |
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"Brutal selloff on Wall Street...
Dow down around 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next."
This Headline at CNNMoney today sounds like a thread on PO.
Hmmmm
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emersonbiggins
Moderator
Joined: Jul 10, 2005
Posts: 5086
Location: Dallas
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| Posted: Fri Oct 19, 2007 4:16 pm Post subject: Re: Limit on fall of DOW in a day? |
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Another 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all.
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"It's called the American Dream because you'd have to be asleep to believe it."
George Carlin |
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Concerned
Light Sweet Crude
Joined: Sep 23, 2004
Posts: 1537
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| Posted: Fri Oct 19, 2007 6:40 pm Post subject: Re: Limit on fall of DOW in a day? |
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| emersonbiggins wrote: | | Another 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all. |
There is so much that is lurking hidden and we need to face up to some difficult issues
- subprime and CDO's
- rampant debt growth
- market maniuplation
- Currency manipulation (China and others)
- energy resource depletion
- metals resource depletion
- potable water depletion
- soil erosion / desertification
- destruction of fisheries
- overpopulation
- global economic growth
- massive inequality rich/poor
- structural economic imbalances China/USA
- climate change
- bird flu pandemics
Im sure I have missed a few, not a pretty picture. How will the humans react?
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"Once the game is over, the king and the pawn go back in the same box."
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BobWallace
Heavy Crude
Joined: Oct 01, 2007
Posts: 187
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| Posted: Fri Oct 19, 2007 6:59 pm Post subject: Re: Limit on fall of DOW in a day? |
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| Concerned wrote: | | emersonbiggins wrote: | | Another 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all. |
There is so much that is lurking hidden and we need to face up to some difficult issues
- subprime and CDO's
- rampant debt growth
- market maniuplation
- Currency manipulation (China and others)
- energy resource depletion
- metals resource depletion
- potable water depletion
- soil erosion / desertification
- destruction of fisheries
- overpopulation
- global economic growth
- massive inequality rich/poor
- structural economic imbalances China/USA
- climate change
- bird flu pandemics
Im sure I have missed a few, not a pretty picture. How will the humans react?
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Same as they did when the problems were...
Smallpox
Polio
No hope for cancer victims
Impending nuclear war with the Soviet Union
Coffee rising to a dime a cup....
They'll muddle on. |
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