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Issues, biotech, health, consumers, durable all taking a hit. when that happens, and you re well aware of the mechanics, what causes that? does it automatically set a chain of events? it s equal to a fast breeder reactor. you get a bad print in proctor and proctor & gamble. unsettling news in europe a market we bounding 50% off the bottom. lots of people are saying correction, correction, correction, you get a spark in a dry forest and that is what can happen. what did this day tell you? number one, the imf and the european commission have major work today in terms of resolving the problems of greece and the neighboring countries in difficult but we have i think a marketplace that has rebounded robustly, we have earnings now ....
Of thing doesn t happen. stuff like this is always going to happen but at this magnitude, we can t afford too far it in the markets. neil: a good congressman will say we lost a trillion dollars because of computers screwing up. we have to watch their computers. he s going to say that but he should say this is a big liquid global market in witted it s a weird thing. people take the value of 100 shares of stock and attribute it all shares. we have a responsibility to monitor how transactions are to know. in this case the system failed but for a technical reason. there are real uncertainties about this market. no question, that s why it went down as much it did. the system works but it had a glitch today. don, you immediately got the columbo reference, which is pretty cool. a short time ago i stoke with ....
Was portfolio insurance and it wasn t the protecter that it was supposed to be. everything fell on top of one another. but what triggered that was the merger, also. the arbitrary guys had the deal done then undone. neil: that were later in 89. that s a problem. neil: could we see that again or would this have the perverse effect of making people feel all it right. i think what is says is two things. the market actually worked. if this was an error, the market worked and stayed open. it was a tragedy and people will get hurt. the other thing neil: but it would have taken a drop-off of 1500 points and then they would have stalled trading. then it would have been bigger. then it would have been ....
Journal to a spat of good news about the fundamentals, profits for the s&p and the rise in not only the margins were good but we re seeing increased spending so that leads you to believe we would have a good day on the market, not a disastrous day or a bad day. you mentioned washington and how it should look at the chart of the day today when we had the free fall. i could see intern pricing congressmen saying we ve got to control these guys computers. when we do financial reform we have to get a handle on traders who hit the wrong key. isn t this interesting? we have a giant financial regulation bill that is coarsing through congress and it has not a single paragraph or sentence or phrase regarding the regulation for the going forward of fannie and freddie, to very large, if not the largest financial institutions before this began to played a critical role in turning a minor dip in ....
Point creating 25% of that decline at the bottom this afternoon. neil: that s a good point. flip it around. people who are going to look at this and say it was a technical thing, all is right with the world. the correction didn t happen. it was a head fake. i wouldn t say dive back in. okay? there are some challenges, clearly. neil: do you think the market is rich? i think the market is reflecting as the market traditionally has the future. as we continue to hear better earnings reports and higher estimates for the s&p and companies that are growing top line, that were only growing bottom line by expense reduction, we re in the middle of an important recovery. will it be straight line up? of course not, it never is. washington wants to look at the very things that i call derivatives in this case but the mechanics and procedures and ....