Woah, the Dow:
Megan McArdle considers a number of possibilities. To be honest, none feel good, in the sense of ‘I’d like to be Chancellor dealing with THAT’ good.
Meantime, over here, 5 minutes before the exit polls, our own markets in whether there will be a Hung Parliament goes a bit loopy for a minute:
Perhaps the answer is the same in each case – too much volume hitting a rather sensitive market at a rather special time? But in the case of the Dow, I would argue that such movements cannot help but produce/reflect a fundamental lack of confidence. If Betfair made markets on the continued appliation of QE, I’d pile in.
Whereas by the time you read this, the Betfair Hung Parliament market will be going nuts again on the exit polls … can’t bear the tension ….