Go back to previous topic
Forum nameGeneral Discussion
Topic subjectis there any event that would warrant closing the markets?
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13369212&mesg_id=13374074
13374074, is there any event that would warrant closing the markets?
Posted by mista k5, Wed Mar-18-20 02:42 PM
>Eventually the information environment will be more clear and
>it will stabilize. But there is no reason to stop things until
>we get there. If you paused markets now, you will just see
>either a huge jump or huge crash once you open them up again
>because they will reflect the information at that time.

thats something i was wondering. if the markets are closed, what happens when they reopen? i would think you need some advanced timing before closing but could that be worse than just saying, markets arent opening tomorrow? how do you handle reopening them?

>Also, a key thing to remember is that there are 2 sides to
>every transaction
>And both sides are getting into the transaction voluntarily
>for specific reasons. By shutting down the market, you are
>preventing people from doing what they want to do.
>
>
>Imagine the market was shut down for a month.
>What if you need cash tomorrow? You can't sell your stocks to
>get it.
>What if you think things are overblown? You can't buy stocks
>to reflect your optimism.
>What if you think things are going to get a lot worse? You
>can't sell stocks to reflect your pessimism.

thats the big question i have on markets closing. what would be the practical effect on people? would markets ever be completely closed or would there be some exception for accessing funds? how easy is it to get cash from your investments right now? what is that process like?

>
>Each of these things (needing cash, optimism, pessimism)
>happen every day. There is nothing special about right now
>other than great uncertainty and prices going down (because
>the information coming out is all bad).
>

i would argue this is extremely special from anything we have seen in our lifetimes. not even 9/11. that was a scare but it was a quick hit then a climb back up. crashes due to bubbles are straight up part of the market. this is more like a war. its really outside of the everyday market ups and downs. this is life changing. its a reset to a way of life. capital kind of loses its purpose during a time like this. at least in my point of view. im guessing all the countries closing borders, a huge portion of the population being forced to isolate, and oh yeah dealing with the actual health of people will upend the economy in a way we havent seen.

i just feel like trying to calm the markets requires too many resources and im not really sure what the point is to do so right now.