Bloomberg reports that four days ago, in Madrid, Nouriel Roubini said something similar:
New York University Professor Nouriel Roubini said curbs placed on U.S. futures trading today shows his prediction that markets will be shut down amid panic selling is coming true.
``This morning, even before the markets in the U.S. opened, the S&P futures fell by more than their daily limit,'' resulting in curbs on futures trading, Roubini told a conference in Madrid today. ``What I said yesterday has already started.''
Roubini said yesterday that policy makers may need to shut down financial markets for a week or two as investors dump assets. Trading in futures on the Standard & Poor's 500 Index and the Dow Jones Industrial Average was limited today after declines of more than 6 percent. Trading of U.S. stocks would be suspended for an hour should the Dow Jones Industrial Average decline 1,100 points to 7,591.25.
``Things are getting worse, they are not getting better,'' Roubini said. There's an increased risk of a ``multi-year economic stagnation'' in the U.S. and ``we have a whole set of emerging market economies in trouble. Even a few of them going bust may cause systemic trouble.''
See, sometimes, Malaysia Boleh!
4 comments:
de minimis, you sure show them the way bro! If only the power that be would frequent the de minimis blog more. ;-) Keep up the good work bro!
Thanks, bro.
wow...that is way too radical. a lot of people will be out of work. i just can't imagine it.
then again, if it works, why not right?
myop101
This measure will, in fact, save a heck of a lot of jobs. The standstill is no different from a Creditors Meeting under s.176 Companies Act or the US Chapter 11 scenario. It will cool the irrationality down and enable the policymakers and private sector players to sort through the debris before resuming trade.
My instincts tell me that a standstill-workout scenario is the best tactical move to arrest this silliness in the financial and capital markets.
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