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Stock merket collapses

Jim Traderless | 05.03.2007 10:52

as traders jump

NY Stock Exchange3
NY Stock Exchange3


Major stock crash March 5th. 2007.

Traders jumping out of windows.


The beginning of the 21st. century was a time of strong economic optimism. From March 2001 to its peak in March 2007, the Dow Jones Industrial Average (DJIA) grew without correction in this period.The rise in market indices for the 19 largest markets in the world averaged 196 % during this period. The average number of shares traded on the NYSE had risen from 100 million shares to 150 million shares.

The crash on 5th. March 2007, a date that is also known as The second Black Monday was the climactic culmination of a market decline that had begun five days before on 1st. March. The DJIA fell 4% on march 1st, followed by another 5% drop on Friday 2nd. March. But this was nothing compared to what lay ahead when markets opened on the subsequent Monday 5th. March..

On the second Black Monday, the Dow Jones Industrials Average plummeted 508 points, losing 22.6% of its value in one day. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. The NASDAQ Composite lost only 11.3% not because of restraint on the part of sellers but because the NASDAQ market system failed. Deluged with sell orders, many stocks on the NYSE faced trading halts and delays. Of the 2,257 NYSE-listed stocks, there were 195 trading delays and halts during the day. The NASDAQ market fared much worse. Because of its reliance on a "market making" system that allowed market makers to withdraw from trading, liquidity in NASDAQ stocks dried up. Trading in many stocks encountered a pathological condition where the bid price for a stock exceeded the ask price. These "locked" conditions severely curtailed trading. On March 5th, trading in Microsoft shares on the NASDAQ lasted a total of 54 minutes.

The Crash was the greatest single-day loss that Wall Street had ever suffered in continuous trading up to that point. Between the start of trading on march 1st. to the close on march 5th, the DJIA lost 760 points, a decline of over 30 percent.

Jim Traderless

Comments

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Utter bollocks

05.03.2007 12:30

Dream on Sparty. Remove this garbage.

Yawn


it's a very

05.03.2007 12:59

red day so far

Mmmm


Hidden Comment

This posting has been hidden because it breaches the Indymedia UK (IMC UK) Editorial Guidelines.

IMC UK is an interactive site offering inclusive participation. All postings to the open publishing newswire are the responsibility of the individual authors and not of IMC UK. Although IMC UK volunteers attempt to ensure accuracy of the newswire, they take no responsibility legal or otherwise for the contents of the open publishing site. Mention of external web sites or services is for information purposes only and constitutes neither an endorsement nor a recommendation.

charlie sheen's grandmother

05.03.2007 13:24

I suppose as the average Indymedia reader doesn't have a lot to do with the Stock Exchange mistakes like the above are understandable. World stocks are at a 30 year high right now so a fall like this really doesn't matter much. In fact rises and falls are the food of the exchanges, without them nobody makes any money !

Gordon Gekko


Counter effect

05.03.2007 16:36

By 34.000 UK time the effect of this article was to raise the Dow-Jones index by about ninety points. Was it posted by the FBI as a mickey take to discredit anything posted on indymedia?

Ilyan


Hidden Comment

This posting has been hidden because it breaches the Indymedia UK (IMC UK) Editorial Guidelines.

IMC UK is an interactive site offering inclusive participation. All postings to the open publishing newswire are the responsibility of the individual authors and not of IMC UK. Although IMC UK volunteers attempt to ensure accuracy of the newswire, they take no responsibility legal or otherwise for the contents of the open publishing site. Mention of external web sites or services is for information purposes only and constitutes neither an endorsement nor a recommendation.

ahh shit

05.03.2007 17:50

ya caught me

FBI


Mickeytakes?

05.03.2007 23:43

A 3 and a 0 too many, so that was the Dow at four o'clock UK.. Maybe a glitch this end. But the item Finanace that appeared on UK indymedia some days ago cannot now be found after a copy was sent to Lloyds List, and one of the pages in the archive that might have contained it cannot be found either. And there are lots of reports going to Firefox about shutdowns here.

Update after the US market closed, those gains were wiped out in further losses, and the lost UKIndymedia 'Finanace' might still be circulating to bring some sense to the Market.

It is a giggle that people with money bought shares to avoid money loss through inflation, and are seeing their money value being wiped out there just at the time their property values are being undermined by the prospect of repossessions by Building Societies (Savings and Loans in USA) of all those who have taken out unsupportable mortgages.

It is a real headache being a Capitalist these days, they are digging ever deeper holes for themselves. Give both the Chancellor of the Exchequer and the Secretary of the Treasury a Lenin Medal for "first debauch their currency" as Lenin advised.to destroy whatever it was he said -. A Govenment, a Country, or a Nation.

Ilyan


Dow fell

06.03.2007 14:24

64 yesterday

Near


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This posting has been hidden because it breaches the Indymedia UK (IMC UK) Editorial Guidelines.

IMC UK is an interactive site offering inclusive participation. All postings to the open publishing newswire are the responsibility of the individual authors and not of IMC UK. Although IMC UK volunteers attempt to ensure accuracy of the newswire, they take no responsibility legal or otherwise for the contents of the open publishing site. Mention of external web sites or services is for information purposes only and constitutes neither an endorsement nor a recommendation.

do it again

06.03.2007 15:50

jim.

Heh Heh


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