[lateStarter]

Just curious. Are there caps in place to limit the amount of the fall allowed on any given day? At what point does the door close for the day when things head south? There must be some sort of limit in place to allow TPTB to regroup and make an effort to contain the meltdown, right? Forgive my economic ignorance...

[americandream]

Trading is suspended in times of sharp and volatile declines, and no doubt, covert manipulation is the order of most days.

[lateStarter]

$this->bbcode_second_pass_quote('americandream', 'T')rading is suspended in times of sharp and volatile declines, and no doubt, covert manipulation is the order of most days.

[emersonbiggins]

This Wiki graphic defines what type of trading curbs exist and when they take effect.

[raober]

Funny you should ask...

$this->bbcode_second_pass_quote('', 'T')hanks to protective measures put in place after the '87 crash, the market has not since experienced a one-day decline of the magnitude of the 1987 crash. The infrastructure was on display most recently this summer, particularly during unusually heavy trading in August, when anxiety about the credit market crisis came to a head.

Two factors protect investors from another crash: the circuit breakers and the Federal Reserve.

Updated quarterly, the NYSE's current rule is that if the Dow plummets 2700 points in a given day - a loss of 20 percent - the market shuts down. If this happens before 1 p.m., the closure lasts two hours. If it happens between 1-2 p.m., the shutdown lasts one hour. If it happens after 2 p.m., the market is shut down for the day.

A 10 percent decline triggers similar measures. The maximum the Dow can lose in a single day is 4050 points, or 30 percent. Should that happen, markets shut down for the day.

[lateStarter]

Thanks for the scorecard. Lets see how well it works in the days ahead.

[BobWallace]

You think we've got a good buying opportunity heading our way?


'Bout time. The piggy bank is getting full.... ;o

[WhatMeWorry]

"Brutal selloff on Wall Street...
Dow down around 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next."

This Headline at CNNMoney today sounds like a thread on PO.

Hmmmm

[emersonbiggins]

Another 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all.

[Concerned]

$this->bbcode_second_pass_quote('emersonbiggins', 'A')nother 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all.

[BobWallace]

$this->bbcode_second_pass_quote('Concerned', '')$this->bbcode_second_pass_quote('emersonbiggins', 'A')nother 1/2 pt. rate cut and the headlines will assuredly read "All is Well!," "Dow hits record close at 16,000" and/or "End in sight for housing slide". Just noise in the trend, that's all.