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Comment on If Trump fires the Fed’s Powell ‘both the currency and the bond market can collapse,’ according to Deutsche Bank

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chaogomu@lemmy.world ⁨9⁩ ⁨months⁩ ago

Part of that is high frequency trading. Computers that blindly trade with other computers. It has a stabilizing effect on the market because it’s divorced from reality.

But there’s the risk. It’s divorced from reality.

So far, when things go bad the Fed has stepped in to halt trading for the day.

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Zron@lemmy.world ⁨9⁩ ⁨months⁩ ago
I hate that we evaluate the health of the economy by the growth in the stock market.

The stock market would continue growing until the power grid failed if every human on earth just evaporated into mist.

Actually it would probably break before that when one of 6 people’s two factor authentication timed out and the computer no longer had access to their accounts.

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Jakeroxs@sh.itjust.works ⁨9⁩ ⁨months⁩ ago
The “fed” doesn’t halt trading, www.investor.gov/…/stock-market-circuit-breakers

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