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Showing posts from May, 2010

Panic! No, don't panic! Well, if you must, make sure you panic first.

Contradictions! Contradictions! Contradictions!

Now that the big European economies have decided to unabashedly, in no uncertain terms, put their pocketbooks where their mouths are and bail out capitalism (as if there was any doubt), the markets have rallied. Even the currency markets soared. At one point during the day the Euro gained over two percent on the dollar.

This comes only a few days after investors were convinced the sky was falling. It's now a distant memory, but remember when the Dow fell nearly one thousand points during the day? (It eventually gained back a good deal of that, but the psychological damage was done.) Much of this was blamed on the near default in Greece. But there were also reports of someone accidentally putting an extra zero somewhere in an electronic trade. Oops! Some Monday detail and all hell breaks loose!

The NY Times described it like this:

A bad day in the stock market turned into one of the most terrifying moments in Wall Street history on Thursd…