Psychology, to a certain extent-- the subprime thing still has people spooked, and Monday the US markets weren't open. Most people walk through life assuming the worst and without the US markets as a bulwark of... well, I won't say sanity, but at least optimism, the rest of the world went into freefall. More, on any given day, the US markets open last, or close to last, so the rest of the world had like a day and half to two days of total fucking irrational panic.
As of right now, the S&P is only down about 0.6%, although it opened down more than 3%.
My guess is that everyone around the world sold everything they thought they should sell, woke up this morning with pissbuckets of liquid assets, realized that the US markets were not melting down as badly as anywhere else, and put their spare cash right here.
Whoah, nelly! The Fed is nowhere near as optimistic as I am! Three quarters of a percent rate cut? Yeesh!
(Although I'm not so much optimistic as simply not panicking-- we've been due for a mild cyclical recession for a while now, and I've suspected for the last six months that the sub-prime mess would nudge us in to it.)
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Either this is just a market correction, or it will be actual DAYS of decline. Just today is too small of a data point.
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It'll be fun to watch, and when things start to pick back up, it'll be bargain buying time.
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As of right now, the S&P is only down about 0.6%, although it opened down more than 3%.
My guess is that everyone around the world sold everything they thought they should sell, woke up this morning with pissbuckets of liquid assets, realized that the US markets were not melting down as badly as anywhere else, and put their spare cash right here.
Go, us.
From:
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(Although I'm not so much optimistic as simply not panicking-- we've been due for a mild cyclical recession for a while now, and I've suspected for the last six months that the sub-prime mess would nudge us in to it.)
From:
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