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If we look at comments in this article, it is very interesting to see the main theme of the topic is what went wrong with today's 1000 pints plunge?
There are two targets so far which people blame: Capitalism and Socialism.
Why do they blame Capitalism? It is those investment banker, plotted with Greece's politician to hide the fast of Greece's debt and economics status for so long until recently issue is exposed during the investigation of Goldman Sachi's wrong doings with CDS and sovereignty fund and debt.
Why do they blame Socialism? It is over-spending in Greece which the main internal factor is causing this problem. It is said in many reports that public servants and workers in Greece have unbelievable benefits, pay and pension which do not match with Greece's current economic scope and extent. In Greece, public worker can even get Bonus if they can walk into office on time. Amazing enough, right?
Debates and market turmoil will continue in the following months, it is just iceberg of hiding fact about so many previous "rich" countries in Europe. Greece could be the first one burst. Who will be the next? Will market behave like the similar path of 2008-2009 sub-prime mess (New Century --> Bern Stern --> Lehman Brother--> AIG --->....?
In the comments, there are some people beginning to blame China, even though not that many compared with people concerning Capitalism and Socialism. However the cross point of these two groups may be on China sometime later. Will China be the perfect scapegoat for these two groups to find common ground? We will see.
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Unconfirmed reports blame single trading error
Last Updated: Thursday, May 6, 2010 | 5:51 PM ET Comments383Recommend177
CBC News
North American markets went for a wild ride Thursday amid fears of a growing European debt crisis and reports that one erroneous trade on the New York Stock Exchange might have triggered the sell off.
Reports said the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock's price was enough to trigger "sell" orders across the market.
Traders gather on the floor of the New York Stock Exchange to watch one of the electronic boards that showed a steep decline in the markets Thursday. (Henny Ray Abrams/Associated Press) The S&P/TSX composite index closed down 32.7 points to 11,842.43 while New York's Dow Jones industrials plunged 347.8 points to 10,520.32.
But earlier in the afternoon, investors briefly pushed the Dow down almost 1,000 points while the Toronto market lost as much as 452 points before recovering.
Nervous investors continued to pile into the perceived safe haven of the U.S. dollar, with the Canadian dollar closing down 2.08 cents to 95.03 cents US.
June oil fell $2.86 to $77.11 US a barrel, and now is down more than $10 from a high of $87.15 on Monday. June gold finished up $22.30 at $1,196.90 an ounce.
Elsewhere in New York, the Nasdaq composite index stepped back 82.65 points to 2,319.64, while the S&P 500 index fell 37.72 points to 1,128.15.
The drop came amid continuing concern among investors that an economic bailout package for debt-ridden Greece proposed by the European Union and the International Monetary Fund will not work, and the Greek crisis will spread to other high-debt European countries.
The euro dropped sharply even before the sell-off on North American markets after bond rating agency Moody's Investor Service said that Greece is not the only European country facing a debt crisis but that the banking systems in Portugal, Italy, Spain, Ireland and Britain could also be hurt by widening debt.
At the same time, Spain's borrowing costs rose at its debt auction Thursday as investors demanded higher rates from borrowers they see as riskier.
Reports said the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock's price was enough to trigger "sell" orders across the market.
But earlier in the afternoon, investors briefly pushed the Dow down almost 1,000 points while the Toronto market lost as much as 452 points before recovering.
Nervous investors continued to pile into the perceived safe haven of the U.S. dollar, with the Canadian dollar closing down 2.08 cents to 95.03 cents US.
June oil fell $2.86 to $77.11 US a barrel, and now is down more than $10 from a high of $87.15 on Monday. June gold finished up $22.30 at $1,196.90 an ounce.
Elsewhere in New York, the Nasdaq composite index stepped back 82.65 points to 2,319.64, while the S&P 500 index fell 37.72 points to 1,128.15.
The drop came amid continuing concern among investors that an economic bailout package for debt-ridden Greece proposed by the European Union and the International Monetary Fund will not work, and the Greek crisis will spread to other high-debt European countries.
The euro dropped sharply even before the sell-off on North American markets after bond rating agency Moody's Investor Service said that Greece is not the only European country facing a debt crisis but that the banking systems in Portugal, Italy, Spain, Ireland and Britain could also be hurt by widening debt.
At the same time, Spain's borrowing costs rose at its debt auction Thursday as investors demanded higher rates from borrowers they see as riskier.
Late in the afternoon, the euro was down 1.75 cents to 1.2639 US, a drop of 1.4 per cent and its fourth decline in as many days.
'There's a lot of debt in the world, and investors don't like it.'—Peter Bethlenfalvy, DBRS
"What's happening is there's a lot of debt in the world, and investors don't like it," Peter Bethlenfalvy, co-president of ratings agency DBRS Ltd. in Toronto, told CBC News."With sovereign, household and corporate debt, you've got a triple threat, and investors don't like that.
“For the next decade, we're going to have a tough time growing GDP, as [large investors] are going to demand [debt be paid down]."
European Central Bank president Jean-Claude Trichet earlier Thursday told journalists its policymakers who met in Lisbon didn't discuss whether to buy euro-zone government bonds on the open market.
Such purchases would help hold down borrowing costs for debt-strapped countries within the currency zone.
One portfolio manager blamed Thursday’s market drop on European Central Bank president Jean-Claude Trichet, above, who, the manager said, failed to reassure markets about measures to support bank lending. (Francisco Seco/Associated Press) Paul Ma, international portfolio manager with Calgary-based McLean and Partners, blamed Thursday's sell off on Trichet.
"It started with the ECB doing nothing," he told CBC News. "Trichet, it's all his fault, really. So, people just gave up hope. They were hoping for some dramatic action ... but he didn't do anything, so the market sold off.
Ma, who has invested significantly in bets that the world economy will slow, said he expects the market sell-off will continue.
"It's not done yet," he said. "We're not even close to being done."
“For the next decade, we're going to have a tough time growing GDP, as [large investors] are going to demand [debt be paid down]."
European Central Bank president Jean-Claude Trichet earlier Thursday told journalists its policymakers who met in Lisbon didn't discuss whether to buy euro-zone government bonds on the open market.
Such purchases would help hold down borrowing costs for debt-strapped countries within the currency zone.
"It started with the ECB doing nothing," he told CBC News. "Trichet, it's all his fault, really. So, people just gave up hope. They were hoping for some dramatic action ... but he didn't do anything, so the market sold off.
Ma, who has invested significantly in bets that the world economy will slow, said he expects the market sell-off will continue.
"It's not done yet," he said. "We're not even close to being done."
