Politicalmonkey2010

The Truth Shall Set You Free…It might piss you off first, but it will set you free.

The Sky Is NOT Falling – Take a Ride on the Wild Side with the Dow

Posted by politicalmonkey2010 on May 6, 2010

It was a wild twenty minutes, and lots of questions still unanswered, I was listening to CNN on the TV and thought I didn’t hear that right, then I sat down and watched…watched the plunge of the market…the phone started ringing – a right wing conservative conspiracy theory lover, predicting the end of the US,  it was because of Greece, and the US is going to fall just like Greece is!!!!  It was interesting to watch the news headlines on the internet – Dow Jones Plummets, Wall Street Plummets! Horrific Tumble on the Dow!  The Sky is FAlling!!!!!

The facts are not all in, but it seems it was a “glitch”…a major factor is according to multiple sources, a trader entered a “b” for billion instead of an “m” for million in a trade possibly involving Procter & Gamble, a component in the Dow.   Since P&G is a component, a gold standard almost of the Dow Jones, this is a significant event.  As the Dow started to fall, this triggered sell orders, meaning the standing instruction was left if the Dow goes to “X” sell, the sells push the market further downward, triggering more sells.  A New York Stock Exchange spokesman confirmed the trading error did not occur on the NYSE and there were “a number of erroneous trades” in P&G shares.   At one point P&G shares were trading $34.64, it closed at $60.75.

Yes, the Greek problem has an impact, but it isn’t a new impact, this has been well known in the international market for quite awhile.  I am sorry to disappoint all those right wing conspiracy lovers who are sure that this “Administration” will destroy the US, we are still standing in spite of your  glee.

Love,

The Monkey

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