Author Topic: Great Liquidity Crisis  (Read 1707 times)

gpyros85

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Great Liquidity Crisis
« on: September 04, 2018, 11:43:12 PM »
So basically what happened back in February 2018 was nothing compared to what might/could happen given a weaker economy.

I am actually surprised not much chatter still exists about our flash crash in 2018 which was due mostly to computer alogarithmic trading.

https://www.cnbc.com/2018/09/04/jpmorgan-says-next-crisis-will-feature-flash-crashes-and-social-unrest.html

ILikeDividends

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Re: Great Liquidity Crisis
« Reply #1 on: September 05, 2018, 12:03:09 AM »

I am actually surprised not much chatter still exists about our flash crash in 2018 which was due mostly to computer alogarithmic trading.


Flash crash in February?  Who knew?  I recall a garden variety correction (down ~10% or so), but I must have slept through the crash.

A correction/crash due to algorithmic trading?  I recall a very brief flash crash attributed to algorithmic trading about ~8 years ago.  Not one recently.  I actually did sleep through that flash crash; it was that brief.

By what metric should we assume our economy is going to weaken any time soon?

References please?  That article hypothesizes a liquidity crisis that doesn't yet exist, and offers no more than a what-if presumption of what would happen if it did exist.
« Last Edit: September 05, 2018, 12:52:36 AM by ILikeDividends »

MustacheAndaHalf

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Re: Great Liquidity Crisis
« Reply #2 on: September 05, 2018, 01:16:00 AM »
I'm not sure the report/article answers that, but it says:
"... extended periods of calm punctuated with spasms of selling known as flash crashes. Recent examples include a nearly 1,600 point intraday drop in February and a 1,100 point decline in August 2015."

What kind of 168 page report fails to mention the index or the day for that kind of information?  References would be nice, but they could start with not being so vague.

Steeze

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Re: Great Liquidity Crisis
« Reply #3 on: September 05, 2018, 07:12:36 PM »
"The developing trade dispute with China could accelerate or delay the end of the cycle as well, he said."

Flexing that PhD in physics.

Cache_Stash

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Re: Great Liquidity Crisis
« Reply #4 on: September 06, 2018, 09:56:43 AM »
"The developing trade dispute with China could accelerate or delay the end of the cycle as well, he said."

Flexing that PhD in physics.

You owe me a new keyboard.  Hot coffee and your comment didn't mix too well. :P

Cache_Stash

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Re: Great Liquidity Crisis
« Reply #5 on: September 06, 2018, 09:57:27 AM »
"The developing trade dispute with China could accelerate or delay the end of the cycle as well, he said."

Flexing that PhD in physics.


The cat may either be dead or alive as well.

caffeine

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Re: Great Liquidity Crisis
« Reply #6 on: September 06, 2018, 01:13:08 PM »

I am actually surprised not much chatter still exists about our flash crash in 2018 which was due mostly to computer alogarithmic trading.


Flash crash in February?  Who knew?  I recall a garden variety correction (down ~10% or so), but I must have slept through the crash.

A correction/crash due to algorithmic trading?  I recall a very brief flash crash attributed to algorithmic trading about ~8 years ago.  Not one recently.  I actually did sleep through that flash crash; it was that brief.

By what metric should we assume our economy is going to weaken any time soon?

References please?  That article hypothesizes a liquidity crisis that doesn't yet exist, and offers no more than a what-if presumption of what would happen if it did exist.

I think (if I recall it correctly) the flash crash from 8 years ago was the result of someone fat fingering an order (buy/sell) and all the high frequency trader's alogirthms to respond accordingly.

Edit: Here's a wiki page on the event: https://en.wikipedia.org/wiki/2010_Flash_Crash