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Should the stock market be temporarily closed until the economy gets better?
Old 02-23-2009, 02:03 PM   #1
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Should the stock market be temporarily closed until the economy gets better?

Maybe the stock market should be temporarily closed for several months (or even a year or longer) until the economy improves. There is precedent for this: The stock market was closed for several months during WWI.

Why make us watch our retirement accounts continue to shrink, and shrink, and shrink? Shut the market down until things improve. When the economy improves, there will be reason for stocks to go up again.

The November lows are very close to breaking (the lows have already been broken on the DOW), and if they do it could go MUCH lower. Something needs to be done.
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Old 02-23-2009, 02:05 PM   #2
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Are you by any chance a member of the Obama admisistration?
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Old 02-23-2009, 02:06 PM   #3
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Are you by any chance a member of the Obama admisistration?
Of course not.
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Old 02-23-2009, 02:08 PM   #4
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If the government shuts down the stock market for a few months, I will sell all my equities the minute the stock market reopens (even if the economy has improved in the meantime) and never invest in the market again. EVER. If you don't want to see your account balances go down, don't look!
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Old 02-23-2009, 02:09 PM   #5
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Russia is all ready doing this.
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Old 02-23-2009, 02:09 PM   #6
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You can always pull your money out of it and stop looking at it.

I don't know the story of the markets being closed during WWI. How did that work? If it were "closed" how would people be able to move money out and into it?
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Old 02-23-2009, 02:13 PM   #7
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I don't know the story of the markets being closed during WWI. How did that work? If it were "closed" how would people be able to move money out and into it?
Shut down the stock market? | Getting Personal | Marketplace from American Public Media

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Treasury Secretary William Gibbs McAdoo taking dramatic action in the summer of 1914--before the Federal Reserve opened for business. The outbreak of World War I threatened the U. S. with financial disaster. The dollar was falling, and investors feared that the U.S. would go off the gold standard. Gold was flowing out of the country. McAdoo closed the New York Stock Exchange for more than four months "to prevent Europeans from selling their American securities and demanding gold in return.
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Old 02-23-2009, 02:14 PM   #8
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The markets already have automatic "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in a few hours or a day. This is presumably to prevent panic or hyperactive program trading from causing the kind of excessive volatility that breeds even more panic, etc.
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Old 02-23-2009, 02:18 PM   #9
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The markets already have "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in one day. This is presumably to prevent panic or hyperactive program trading from causing excessive volatility.
True. But paradoxically, the more the markets fall over time, the less likely they are to trip the circuit breakers because the point drop that's required remains fixed -- meaning that the percentage drop needs to be a lot higher now.

The first circuit breaker as of 1/1/2009 would have kicked in with a 10% decline, but at current levels it would take an 11.9% drop until the circuit breaker levels are reset.
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Old 02-23-2009, 02:20 PM   #10
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The markets already have automatic "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in a few hours or a day. This is presumably to prevent panic or hyperactive program trading from causing the kind of excessive volatility that breeds even more panic, etc.
True but they don't kick in until we are down like 12% interday.
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Old 02-23-2009, 02:21 PM   #11
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Heck, it feels like twice that every day. But of course the idea that we should close the markets "so we don't lose any more money" has no merit.

By the way, Zimbabwe's markets just opened again, after being closed for three months. Now, trading is done in U.S. dollars. The entire first day's trading amounted to about $30!
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Old 02-23-2009, 02:28 PM   #12
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Madoff managed a hedge fund that was bigger then the budget of California in over 13 year, never made a trade. How many clones are out there?

Now a gaggle of MLB players can't pay their bills because of being hooked by Stanford.
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Old 02-23-2009, 02:32 PM   #13
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Of course not.
I also think the markets should be closed because they are commenting unfavorably on the administration's program. Bond markets too should be closed. Banks should be forced to keep whatever loans or investments they have at present, and not trade or re-allocate these. Next Fox News, New York Post, Rush Limbaugh, The National Review and the WSJ should be closed for the same reason, as they too sometimss comment unfavorably on the new programs.

Next the midterm elections should be cancelled, because we all know what happened to Clinton in the midterms.

While we are at it, we should prohibit divorce, as all these divorces make Americans look like losers at love.

I am glad you brought this up, as it makes clear what has been missing from our national response to the recession. We need to do a lot more!

Ha
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Old 02-23-2009, 02:33 PM   #14
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Open and liquid financial markets allow price discovery to occur quickly and efficiently. In general. Very important tool. I vote "keep open".
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Old 02-23-2009, 02:34 PM   #15
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Open and liquid financial markets allow price discovery to occur quickly and efficiently. In general. Very important tool. I vote "keep open".
What do you think of government capital injections in "certain/the chosen" companies?
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Old 02-23-2009, 02:34 PM   #16
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And we should close this forum to prevent further depressing thoughts.
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Old 02-23-2009, 02:35 PM   #17
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The other thing is that in 1914, few people depended heavily on the stock market to finance their retirement. Today, with a hoard of people counting on their IRAs/401Ks and investments in general to pay their monthly bills, closing the market for a few months / years (who knows how long it would take for the economy to recover?) would be a nightmare of epic proportions.
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Old 02-23-2009, 02:38 PM   #18
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And we should close this forum to prevent further depressing thoughts.
I got stuff I bought last week that is all ready down double digits.

Can you have a negative SWR rate?
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Old 02-23-2009, 02:42 PM   #19
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I got stuff I bought last week that is all ready down double digits.

Can you have a negative SWR rate?
Yes you can!

Let's see... The W in SWR is for withdrawal, so make it negative and you have an addition.

Adding money to your accounts is easy: keep w*rking or go back to w*rk! (nervous laugh...)
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Old 02-23-2009, 02:48 PM   #20
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Yes you can!

Let's see... The W in SWR is for withdrawal, so make it negative and you have an addition.

Adding money to your accounts is easy: keep w*rking or go back to w*rk!
I start my new j*b March 6th. Was suppose to be March 13th but I can't wait another week.
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