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One minor elephant in the room that only a few seem to be mentioning is the 500+ point selloff on Thursday. On Thursday evening, the economist talking-heads ex
by logjam 15y ago
One minor elephant in the room that only a few seem to be mentioning is the 500+ point selloff on Thursday.
On Thursday evening, the economist talking-heads expressed some confusion about what was driving that sell-off on that particular day. There was vague talk of problems in Europe, although there has been worse news out of the Eurozone for months without that kind of drop.
On Friday, we get the S & P announcement of a decision that may impact markets. One can only imagine when this particular decision was actually made.
What drove the sell-off on Thursday?
- deleted 15y ago[deleted]
- chailatte 15y agoThe potential implosion of EU, caused by Italy or The rich is alerted the downgrade first, naturally.
- logjam 15y agoYep. I'm more than a bit suspicious that it's your option 2, given that it's been "Greece"..."Italy"..."Ireland"..."Greece"...Euro-disaster talk for months now without the kind of precipitous one-day decline that just happened to precede this announcement.
- com 15y agoWell, just before the precipitous fall on the markets there were letters between various parties in Europe (European Commission President, European Central Bank President and the German Chancellor) which showed that they had some fundamental disagreements about what to do - vastly scale up or not - with the European sovereign bailout fund. That seems to have spooked the markets somewhat.
- ww520 15y agoSomeone in S&P leaked the downgrade ahead of time?
- ig1 15y agoUnlikely, there's a reasonable chance you could face jail time if you were caught doing such a thing and probably wouldn't be able to work in the financial industry ever again. So your upside would essentially have to be a huge amount of money, but of course you're much more likely to get caught if you're moving around such a large sum.