Live to trade another day

Politics seems to be trumping everything else and there is a political agenda that is at odds with conventional economic thinking.

By GIL STERN STERN SHEFLER
August 9, 2011 02:26
3 minute read.
New York stock exchange

NY Stock Exchange 311. (photo credit: REUTERS)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

WALL STREET – The mood outside the US stock exchange on Monday morning – the first day of trading since the nation’s credit was lowered for the first time in history – was tense.

Traders on cigarette breaks nervously paced the pavement outside the iconic building draped in the American flag, while dozens of international journalists awaited news on how the market would react to Standard & Poor’s historic decision announced last Friday.

Be the first to know - Join our Facebook page.


RELATED:
Obama blames credit rating drop on political gridlock
‘Israel will escape short-term damage’

“Clearly it’s an event that we don’t really understand all the ripple effects of, in terms of the stock market,” said Theodore P. Weisberg, the founder of Seaport Securities, a trading company. “My guess is that it’s historic in nature – we have not had this to deal with before – but we also know that corporate America had never been in better shape.”

Asked why that surplus hasn’t had a beneficial effect on the economy, Weisberg blamed politics in Washington.

“Politics seems to be trumping everything else and that’s unfortunate, but there is a political agenda in this country that clearly is at odds with a lot of conventional economic thinking,” he said.

Dan Good of XO Communications, a company which provides telecommunication services to financial firms, spoke to journalists outside his office during a break. He opined that the best way to rehabilitate the economy was creating new jobs.

JPOST VIDEOS THAT MIGHT INTEREST YOU:


“Right now what’s going to have to happen is [to] get the American people back to work,” he said. “Right now the unemployment rate is too high, hovering over 9 percent. We need to get that number down to around 7%.

We’re outsourcing way too many jobs outside the US. We need to put more American workers back to work to get the economy going. It’s the only way to do it.”

Half way through the day’s trading, stocks dropped by about 2.8%, a significant decrease, yet not the free-fall many had feared.

“Today there’s a little bit of optimism, but there’s still a lot going on, so the general mood is cautious,” said Benjamin, a trader who asked not to be quoted by his full name because he was not authorized to speak to the press.

“There was a big sell-off in the morning, but it came back a little bit.”

“It’s still volatile,” said another trader, who requested anonymity. “We went out for a cigarette [and] it was down 200, and when we came back it was 360 – in four minutes. We’ll see what happens.”

Meanwhile, a group of 11 meditation practitioners placed yoga mats in front of the entrance to the Wall Street Stock Exchange and took part in a “flash meditation.”

A swarm of tourists and workers on lunch breaks quickly surrounded them taking photographs.

“The intention of this mediation is to practice tolerance and acceptance on Wall Street,” a sign read.

Police confiscated a meter long sword from one of the women participating in the meditation, worried it may be used as a weapon.

But if the aim of the meditation was to positively influence proceedings in the adjacent building, it failed.

At 2:15 p.m. local time, about three hours before trading closes, the NYSE Composite Index took a dip falling by 6.55% from the start of day.

Earlier in the day Weisberg, who has been trading on Wall Street for decades, seemed to take the crisis with stride.

The Wall Street veteran’s advice at the time was to wait until it became clear where the market was heading.

“Go fishing,” he said. “The whole trick is to live to trade another day.”

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS