In a turbulent day on Wall Street, the Dow Jones industrials lost almost 1,000 points, nearly a tenth of their value, in less than half an hour.
It was believed that a simple typographical error in one of the orders had triggered a wave of computerized selloff.
The Dow was down 400 points at 10,460 before it tumbled almost 600 points in seven minutes to its low of the day of 9,869, a drop of 9.2 percent. It was the biggest drop ever during a trading day.
Then the market bounced back, rising almost as quickly as it fell. Within an hour, the Dow had regained 700 points. The trading day ended with the Dow down 347.80, or 3.2 percent, at 10,520. This was still the biggest point loss since February of last year.
With events in Eurozone weighing on everybody’s mind, market sentiment has been getting a bit shaky recently.
I don’t think we are going to see a near term solution to Europe’s problem and I have been less than optimistic about the equity markets ever since the end of last year.
Any proposed bailout is only but a stopgap solution (if it ever goes through) and one way or another, Greek bond holders will end up having to pay the price.
Ultimately I think Greece will have to leave the Eurozone, or Euro will have to be greatly devalued (which is happening slowly now).