By FITSNews || Grab the heartburn medicine …
The Dow Jones lost 350 points on Thursday – or 3.3 percent of its total value – but the damage could have been much, much worse. At one point during trading, the Dow was down 1,000 points, which would have easily been a record decline.
Currently, the biggest single one-day drop in the Dow’s history took place on September 29, 2008, when stocks shed 777.68 points.
The NASDAQ was also down sharply, losing 127 points – or 5.3 percent of its total value.
What caused the sell-off?
Concerns over the state of the European economy in light of the bailout of Greece, which many contend could push the world to the brink of another global financial meltdown.
Over the last fourteen months, the Dow has show steady gains, prompting many to assert that it was due for a correction. Still, the influence of European instability (due in large part to excessive governmental borrowing) cannot be ignored. If the dominoes fall from Greece to other debt-ridden European nations (like Spain, Portugal and Ireland), the world could be facing a downturn to rival the collapse of the housing market.
By SubZeroIQ May 6, 2010 at 5:03 pm
FITS: Please let me put this comment on all your stories today.
Why did you drop the ball on the Benjamin collision?
It has now become something much bigger and the most serious in South Carolina history. Why? Because Chief of Police Carter refused to appear before the City of Columbia Council, which called him on Wednesday to report on why the investigation was so secret and taking so long.
Now Carter has forced the City Council to cancel its Friday morning meeting meant to require an outside agency to investigate this one and in the future. Carter refused and defied the Council.
One thing cannot happen in America: those armed by the people cannot refuse to answer to the civilian authority elected by the people.
If that happens, we no longer have a democracy but a military or police dictatorship.
This is not funny. Please take it seriously. Thanks and God bless.
By JVMFan May 6, 2010 at 7:05 pm
Goldman Sachs on the Silver Screen in Financial Film
(Hollywood, CA) Just days after regulators fined Goldman Sachs $450,000 for violating rules governing short sales the DOW plunges nearly 1000 points in the “whoosh” of massive technical trades. Not surprisingly, Hollywood was telling the story to audiences months before the SEC took action.
“Stock Shock-The Short Selling of the American Dream,” directed by Sandra Mohr, exposes the techniques known as naked short selling and flash trading. It gently explains the complicated concepts to average investors using cartoons and quirky characters. In a short sale, a customer borrows a security from the brokerage, sells it in a bet the price will go down, and then buys it back later. Naked shorting involves selling short without arranging to borrow shares within the three-day settlement period. “I had no idea you could sell something you don’t own,” says Judy Robb after seeing the movie.
“Stock Shock” suggests market manipulation resulted in the collapse of the stock value of some of America’s largest public companies–including Lehman Brothers and Sirius XM. Sirius XM, often listed as one of the most shorted stocks in the market, is dissected in the movie. “Stock Shock” interviews individual investors who saw their stock price hit a high of $9.00/share and then plummet to a horrifying low of 5 cents in 2009. It is often implied that hedge funds and financial giants like Goldman Sachs played a role in the downturn of the stock and the market as a whole.
Enraged investors and fans of the movie reportedly sent their DVDs to the SEC demanding protection. Some claim “Stock Shock” has spurred a grassroots movement helping convince the agency to address the issue of abusive naked short-selling.
The film was featured at the “Los Angeles Women’s International Film Festival” at the Laemmles Sunset 5 Theaters in Hollywood in March. It looks like someone in the audience may have worked for the Securities and Exchange Commission.
The SEC and the regulatory arm of the New York Stock Exchange found that from December 2008 to January 2009, the firm accepted and cleared 385 naked short orders.
A Goldman spokesman said the violations resulted from a processing error, and had no financial effect on clients. They must not have seen “Stock Shock.”
Movie trailer and DVD is at http://www.stockshockmovie.com
By Freedom For Me May 6, 2010 at 9:10 pm
Man….This is just a sign.The shit is going to hit the fan pretty soon
By south mauldin May 6, 2010 at 9:50 pm
Electronic trading and/or mistakes will be the reason for this. No other reason. None. Sorry to disappoint you Glenn Beck asskissers.
By Checking in May 7, 2010 at 12:02 pm
Computer Glitch