What caused the market crash of May 6th?
At this hour the word is that someone at Citigroup placed an order to sell Proctor and Gamble and hit the B key instead of the M key. M is an awful lot of illions and a B is a thousand times an awful lot of illions. Supposedly this was not dollars; it was the number of shares ordered to be sold. In that case we have to multiply again, this time by 63 which was more or less the price of each share, more in the morning. less in the evening.
Proctor & Gamble is one of the 30 companies in the Dow Jones market index. When P&G got slaughtered the market index sunk faster than an oil rig and everybody yelled, it’s Greece! It’s Greece! Citigroup denies the trader story. Greece is too busy to address the issue.
In any event, market panic was the knee jerk (no hyphen) reaction. Relax; Greece is not coming to America. We have headed in that direction, to be sure, but even the biggest ships can be turned around. We are not going down, not this week, not ever without a fight. Fight we will, and win we will. It is 6 months to November.