The emails from numerous readers were fascinating. I learned some things about my ancestry that turned out to be less than complimentary; I got to imagine several hypothetical yoga positions that, unless one is amazingly flexible, appear to be impossible. I was also informed that I had no insight whatsoever into "how the trading of stocks works." Oh, and, it turns out that according to one emailer, I am "f$%^ing clueless." My favorite was the one suggesting I should get cancer and die.
The closest thing to legitimate criticism came from B, who this morning noted it was "better to be lucky than smart."
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For those people who are still interested, despite the myriad of issues with my ancestry, intellect, and "f$%^ing cluelessness," I believe covering half of any short positions today is the prudent approach to such an outsized move — 10 points in 2 days . . .
I previously mentioned The Panic of 1907: Lessons Learned from the Market’s Perfect Storm by Robert F. Bruner and Sean D. Carr, in a linkfest a few months ago.
I found the book, published exactly a century after the original event, to have some rather interesting parallels to today.
The significance of the 1907 Panic as an economic event went far beyond the mere crash and recovery. It eventually led to the creation of the U.S. Federal Reserve.
There is a video excerpt from the book here.
The authors point out the following Déjà vu — 100 years later: "War was fresh in mind. Immigration was fueling dramatic changes in society. New technologies were changing people’s everyday lives. Wall Street was wheeling and dealing . . ."
They also name 7 factors are required to develop a financial panic: Buoyant Growth, Systemic Architecture, Inadequate Safety Buffers, Adverse Leadership, Real Economic Shock, Fear and Greed, Failure of Collective Action.