“Economic terrorism”: Huckabee wonders if someone’s trying to drive the market down
posted at 1:49 pm on October 11, 2008 by Allahpundit
I’m … highly skeptical, but lack the economic chops to debunk this myself. Any financial wizards want to weigh in? He’s right that the market’s been diving late in the day (except yesterday), but I assumed that was due to small investors whose mutual funds are valued as of the day’s closing price trying to unload their shares before the final bell. That’s how it works at my fund. If you don’t get out before the market closes that day, you’re forced to ride it all the way to the closing bell the next day. Normally that’s no big deal, but when the Dow’s dropping 7% every 24 hours and people are desperate for liquidity, every day you wait is potentially thousands of dollars lost. So they’re hanging on until 2 or 3 p.m. or so to give it a chance to recover, and when they see that it hasn’t, they all dump. Or so I thought. Huck thinks differently. Exit question one for people who know what they’re talking about: Is he right or is this just another case of Huckabean economic populism leading him to blame shadowy, nefarious fat cats for a systemic problem? And exit question two: Who, exactly, does he suspect is behind this “economic terrorism”?