Should We Halt Trading More Generally?
Mar. 16th, 2020 02:00 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
walkitoutYes.
Oh, were you expecting me to say more? Why? I mean, usually, when I have a lot to say, I label it "A Few Remarks".
I did not say, A Few Remarks About Possibly Halting Trading More Generally. I asked, Should We, and I answered it yes. I am done. A real leader would have done it already: sent a team of economic advisers with a string of degrees and decades of experience out to CNBC and Bloomberg and Is Fox Business Still Around then yes, them, too, with permission to name call people at least at the latter venue. On the TV Machine, the advisers would explain how just like all the grocery stores have had to limit purchases of a broad range of goods because of panic buying and to ensure an orderly market for all grocery customers, so, too, we are going to have to ensure an orderly market for securities of all sorts and the way we are going to do that is we are not just going to do circuit breakers we are going to take a day or a week or two weeks or whatever it takes off until we all collectively understand how things are going to go forward and only then will we resume normal securities trading.
This would all have been part of a plan hashed out over the previous week or weeks, in which those same advisers and others had quiet, in depth virtual interactions with all the Very Important People at all the Very Important Trading Desks and banks and at the exchanges. Just as the CDC said schools might close, we would have heard people say that exchanges might close.
Duh.
ETA: I recognize that having these conversations might well have triggered broader market panic. But part of the conversations would have been starting out with, if you panic about this, then the closing part of this whole plan will just start sooner AND we will prosecute you, if people in on the early conversations preparing for this used that information in an effort to gain an advantage.
That is how it SHOULD have gone. Obviously, it has not.
ETAYA: https://www.bloomberg.com/opinion/articles/2020-03-16/data-and-psychology-may-argue-for-us-stock-market-closure
A slightly different and much more reasonable argument. I dunno. I figure if you cancel all the sports, shouldn't the market be closed, too?
Oh, were you expecting me to say more? Why? I mean, usually, when I have a lot to say, I label it "A Few Remarks".
I did not say, A Few Remarks About Possibly Halting Trading More Generally. I asked, Should We, and I answered it yes. I am done. A real leader would have done it already: sent a team of economic advisers with a string of degrees and decades of experience out to CNBC and Bloomberg and Is Fox Business Still Around then yes, them, too, with permission to name call people at least at the latter venue. On the TV Machine, the advisers would explain how just like all the grocery stores have had to limit purchases of a broad range of goods because of panic buying and to ensure an orderly market for all grocery customers, so, too, we are going to have to ensure an orderly market for securities of all sorts and the way we are going to do that is we are not just going to do circuit breakers we are going to take a day or a week or two weeks or whatever it takes off until we all collectively understand how things are going to go forward and only then will we resume normal securities trading.
This would all have been part of a plan hashed out over the previous week or weeks, in which those same advisers and others had quiet, in depth virtual interactions with all the Very Important People at all the Very Important Trading Desks and banks and at the exchanges. Just as the CDC said schools might close, we would have heard people say that exchanges might close.
Duh.
ETA: I recognize that having these conversations might well have triggered broader market panic. But part of the conversations would have been starting out with, if you panic about this, then the closing part of this whole plan will just start sooner AND we will prosecute you, if people in on the early conversations preparing for this used that information in an effort to gain an advantage.
That is how it SHOULD have gone. Obviously, it has not.
ETAYA: https://www.bloomberg.com/opinion/articles/2020-03-16/data-and-psychology-may-argue-for-us-stock-market-closure
A slightly different and much more reasonable argument. I dunno. I figure if you cancel all the sports, shouldn't the market be closed, too?