![]() I’m an old fat guy-I’m not meant to take this.” “At 1 o’clock I’m going to El Ranchito and have a few margaritas. He said the huge trading volume was exacting a toll on him. “I had a client who has an Internet account, and he called up and had me place an order because he couldn’t get through.” ![]() “I guess the Internet stuff is breaking down,” Reynolds said. in Newport Beach said he had taken orders from clients who more often trade with discount brokers or online, but were unable to place orders in those ways Tuesday because of the heavy volume. Stockbroker Craig Reynolds of Van Kasper & Co. ![]() It wasn’t just Quotron that had a lag in keeping brokers up to date, said Bob Crook, a spokesman for Reuters, which owns Quotron.īloomberg, Dow Jones Markets and other providers of what is known as real-time information also fell behind, especially in the morning rush, he said. “You just have a sense that if you want to own Intel, the market will fill your order.” “The information is so far behind the market, you can’t really rely on the price on the screen,” one PaineWebber broker said. Trading was so furious that brokers couldn’t rely on the Quotron machine, the computer device that gives them up-to-the-second stock prices. “I didn’t look at the market for two hours-I had a huge backup problem,” said trader Harvey Cloyd.Īt the full-service brokerages, it also was tough to keep up with the market. Some traders said they were overwhelmed Tuesday morning with a backlog of unfilled customer orders. The New York Stock Exchange, which handled 1.2 billion shares on its first 10-figure trading day, reported few problems, a spokeswoman said.Īt the Pacific Exchange, buying activity was furious, with many computer systems running slower than usual and frustrating traders. Private trading systems that hook up with Nasdaq, such as Instinet, owned by Reuters Holdings, and Bloomberg Tradebook, owned by Bloomberg, also experienced slowdowns, as did the internal computer systems of the stock brokerages. “On the whole, I think our systems operated admirably,” he said, noting that the volume of 1.375 billion shares traded was more than a third greater than Nasdaq’s previous record. Patrick Campbell, Nasdaq executive vice president for market services, acknowledged that trade confirmations were running late Tuesday but said that orders still were being executed at the proper price. “There are going to be days like that,” he said. On a single deal, Moore said, Smith Barney was out $64,700. By the time the trader had finished filling the order incrementally, the price had reached $48. Smith Barney didn’t own the stock, so it had to go looking for some just as the market staged its spectacular morning rebound. At the same time, there were many people who were not involved in the speculation and total national trade didn't collapse.Moore, interviewed amid the hubbub of Smith Barney’s vast trading floor in downtown Manhattan, gave this example of how such wild price swings can whipsaw traders:Įarly in the day, while the Dow was still tumbling, an institutional customer placed an order for 15,000 shares of stock in a small finance company, trading at $39.50. There was a frantic tulip trade where people did pay incredibly high prices for some bulbs, and the price of bulbs did collapse. More recently some modern scholars have begun reevaluate long held assumptions including the idea that this was truly a bubble. After a few years the frenzy died down, and by February 1637, prices began to decline. ![]() Speculation drove the value of tulip bulbs to extremes and in 1634, tulip mania swept through the country. After it was discovered that the flower could be grown faster from a bulb, the bulbs became highly coveted. However, the flowers were fragile and it took years for flowers to grow from a seed. When the tulip was introduced, it immediately became a popular status symbol for the wealthy and the growing middle class. Tulip Mania (Tulipomania) occurred in Holland during the Dutch Golden Age and has long been considered the first recorded speculative or asset bubble. Library of Congress Prints and Photographs Division. Tulip beds at Longwood Gardens in Kennett Square, Pennsylvania, one of the premier horticultural display gardens in the United States.
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