13 votes

NYSE paused after Dow plunges shortly after trading begins

12 comments

  1. [4]
    dubteedub
    Link
    @skybrian was mentioning in another thread that the drop in oil prices reminded them of 2008. Well this stock market "circuit breaker" has not be used since December 2008 due to the financial...

    @skybrian was mentioning in another thread that the drop in oil prices reminded them of 2008. Well this stock market "circuit breaker" has not be used since December 2008 due to the financial crash. This is hugely significant.

    When trading resumes, another 15-minute pause will happen if losses reach 13%, a drop that would put the S&P 500 at 2,585.96. If the decline hits 20%, or 2,377.9, markets will close for the day. Only the 20% rule applies in the final 35 minutes of cash trading. Traders have never seen a 13% or 20% breaker trip.

    Depending on how the rest of the day goes, this could be incredibly bad for the economy.

    8 votes
    1. skybrian
      Link Parent
      I just meant the overall situation, in the sense that things are not normal and everyone knows it. The price of oil actually hit a record high in July 2008, before it dropped due to the recession....

      I just meant the overall situation, in the sense that things are not normal and everyone knows it.

      The price of oil actually hit a record high in July 2008, before it dropped due to the recession. Fuel efficient cars were briefly popular and SUV sales took a big hit. U.S. car makers were especially unprepared for this.

      4 votes
    2. [2]
      Eabryt
      Link Parent
      I believe I saw something saying this rule was created specifically for the 08 crash, but I cannot find a source so I may be wrong.

      has not be used since December 2008

      I believe I saw something saying this rule was created specifically for the 08 crash, but I cannot find a source so I may be wrong.

      3 votes
  2. [8]
    A_Little_Star
    Link
    To be honest I hope the market crashes hard, the stock market is mostly used by people who have money. Maybe this will shift priorities of people to more socialist care especially regarding...

    To be honest I hope the market crashes hard, the stock market is mostly used by people who have money. Maybe this will shift priorities of people to more socialist care especially regarding retirement and ensuring needed resources are funded.

    1. papasquat
      Link Parent
      The market crashing hard means lots of people losing their jobs, their homes, and their ability to take care of themselves. Why would you hope for that?

      The market crashing hard means lots of people losing their jobs, their homes, and their ability to take care of themselves.

      Why would you hope for that?

      11 votes
    2. [2]
      Comment deleted by author
      Link Parent
      1. A_Little_Star
        Link Parent
        Actually it resulted in things like psychiatric care, social security and other government led benefits.. It had greater social programs than before the recession at least

        Actually it resulted in things like psychiatric care, social security and other government led benefits.. It had greater social programs than before the recession at least

    3. skybrian
      Link Parent
      That's not how it works, some people with money will do well in a crisis. If you aren't all-in and have a lot of cash, it's a good time to buy at low prices. There will be winners and losers....

      That's not how it works, some people with money will do well in a crisis. If you aren't all-in and have a lot of cash, it's a good time to buy at low prices.

      There will be winners and losers. Stronger companies will do better. It will increase inequality.

      6 votes
    4. dubteedub
      Link Parent
      Accelerationism is not going to help anyone. I would encourage you to read some past discussions on accelerationism on Tildes to get a better idea why it is not something that should be...

      Accelerationism is not going to help anyone.

      I would encourage you to read some past discussions on accelerationism on Tildes to get a better idea why it is not something that should be encouraged.

      https://tildes.net/~misc/jdw/accelerationism_the_obscure_idea_inspiring_white_supremacist_killers_around_the_world

      4 votes
    5. unknown user
      Link Parent
      I have significant (to me) amounts of savings in accounts that are in investment funds which are usually tied to market performance. I am by no means "wealthy" or "rich"—"middle class", sure?...

      I have significant (to me) amounts of savings in accounts that are in investment funds which are usually tied to market performance. I am by no means "wealthy" or "rich"—"middle class", sure? These are savings I have put away diligently over the last 6 years of my working life. I've given up holidays, nice clothes, and other real luxuries to have a moderate nest egg which may one day be a house deposit (it isn't enough for that yet).

      I have literally already been affected by this stock market plunge to the tune of 15% drop in what I have stored away.

      Now, I'm not trying to time the market, I know it'll recover, I know macroeconomically in another 5, 10, 20 years I'll still be better off. But don't think this doesn't affect those who aren't wealthy either.

      4 votes
    6. NaraVara
      Link Parent
      Scarcity makes people more likely to screw their neighbors to get ahead, not less.

      Scarcity makes people more likely to screw their neighbors to get ahead, not less.

      2 votes
    7. Litmus2336
      Link Parent
      "This recession will surely cause the socialist revolution" - Everybody wanting a socialist revolution since the Paris Commune

      "This recession will surely cause the socialist revolution" - Everybody wanting a socialist revolution since the Paris Commune

      1 vote