Schwab, Fidelity Traders Report Outages During Stock Meltdown (bloomberg.com) 74
Charles Schwab and other retail brokerage users reported outages as a global stocks selloff surged when trading in the US market opened on Monday. From a report: More than 14,000 users reported an outage at Schwab at 9:50 a.m. in New York, according to the website Downdetector. The outage comes at a time when global financial markets are experiencing a significant downturn as a widespread sell-off intensified following Friday's disappointing US employment data, which heightened concerns about a potential recession in the world's largest economy. The turbulence was particularly pronounced in Asian markets, with Japanese stocks leading the decline, while cryptocurrencies, oil prices, and European equities also suffered losses. The volatility spread to the US, where stocks plummeted at the opening bell, and the yield curve briefly inverted as investors increased their bets on imminent Federal Reserve interest rate cuts.
2nd or 3rd time this year (Score:5, Interesting)
I know it's probably growing pains from acquiring TD Ameritrade, but as a Schwab client for over 20 years even I am getting a little frustrated that it always seems to happen on volatile days.
I had been watching NVDA waiting for a buy opportunity, and it might have been this morning except I couldn't login for an hour and a half.
When I finally got in, a had a decent chat with a support rep. They claim it was only certain individuals that were effected and it took them longer than normal to figure out what was effecting that subset of clients. He never would give more specifics, but did say this issue went all the way to the top of the company (whatever that means).
Re: 2nd or 3rd time this year (Score:5, Insightful)
Shit's rigged unless you're plugged into a Bloomberg in NYC. It's just a matter of how rigged.
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*affected
Re: 2nd or 3rd time this year (Score:1)
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I was also wanting to buy some things this morning but it was well past noon my time before I could login to Schwab (on app or web, login service failures).
On top of the unreliable login service that screwed me over, I also hate the Schwab UI (at least compared to Ameritrade).
Going to try and switch away from them in the next few months. Couldn't help noticing an Interactive Brokers login I have worked just fine first thing this morning.
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I know it's probably growing pains from acquiring TD Ameritrade, but as a Schwab client for over 20 years even I am getting a little frustrated that it always seems to happen on volatile days.
Wait a sec, you actually think it was coincidence that the platform was unavailable for trades during a volatile market? Maybe you shouldn't be trading then. It is a cutthroat market and you are too trusting to play safely.
No, they absolutely do NOT play fair. At all.
Schwab's systems simply aren't fit for purpose. (Score:2)
What do you mean the couldn't handle BRK.A? (Score:2)
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I bet (Score:4, Interesting)
I bet the trading is going just fine for the institutionals and the mega-rich. It's only the poor people who can't move their money around when the stock casino tanks.
Re:I bet (Score:4, Interesting)
Yeah, Schwab, Goldman Sachs, Jones et. al. are into electronic trading. They and their ilk long ago saw to building in "circuit breakers" to ensure that large corporate investors - especially e-trading corporations - don't pay unnecessarily for downward market pressures. If this turns out to be bad enough, the whole market will shut down to protect the big boys. The stock market has been designed to prevent exactly the crash people seem to be worried about. I do have to wonder if and why Schwab's systems apparently can't handle the load, the market at large isn't throwing their breakers just yet.
What, you thought those circuit breakers were in there to protect you? Hahahahaha.....
Re:I bet (Score:4, Informative)
What's going on is that there was a pretty big bubble in prices in July due to hopes of the Fed starting to ease and it didn't happen in July. Now it's unwinding. The Fed isn't under the control of Harris/Biden or Trump for that matter.
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That "bubble" was due to relative strength -despite- the unlikelihood of a rate ease.
The pop we're seeing right now is likely entirely due to the DNC's presumptive selection for President being nearly certain at this point. The market drops we saw last week matched that evolving news cycle.
You'll note that RTX et al aren't exactly tracking the drop the same way.
Re: I bet (Score:2)
My stock portfolio is up 22% for the year. Seems a bit early to be calling some sort of crash.
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Seems a bit early to be calling some sort of crash.
Crashes take time. So yes, it is early, but that doesn't mean you're safe. The blip we see here is likely bad enough to ruin some marginal players; regional banks that are under water with their comically tragic commercial real-estate positions, for example. Enough of those go down and it destabilizes other operations. Etc., etc.
If your still "up" 2-3 months from now you have only luck to thank.
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They say the market takes the stairs up and the elevator down
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> Seems a bit early to be calling some sort of crash.
Depends on what you're looking at. From hearing about the market, mainly from the CEO where I work, they're looking at the second derivative. That's crashing.
The first derivative seems to be still holding positive.
Re: I bet (Score:2)
When financial news is being reported, a "crash" is generally considered to be 20% off highs.
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22% over actual inflation rates?
Re: I bet (Score:2)
3% inflation, so 19% real growth.
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Re: I bet (Score:2)
Capitalism is a system for redistributing wealth from idealists to pragmatists.
If you are unhappy with how your labor is performing in the market, I would suggest converting that labor into capital.
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Thank you for showing that you have absolutely no idea how a stock market works, while also positively identifying yourself as a partisan hack.
It's a bad market day. But it's not even a top-10, 8 of which happened while Trump was in office [wikipedia.org]. Were you saying the same things about him on those days?
Every market index is still WAY up over the last 3 years.
Fucking clown.
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Those were a direct result of the Covid lockdown. Of course, you attribute them inaccurately to Trump...
Fucking clown.
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Always the same excuse-making bullshit.
It's never his fault when shit breaks bad on his watch. But when shit breaks bad when someone else is running things, it's always their fault!
Please tell me how the Nikkei index losing shitloads of money hours before an American market even opened, which dragged global markets down, is the VP's fault; if you seem to think that the President mismanaging a public health emergency somehow wasn't the President's fault.
Also, #9 on the all-time 1-day point loss list was fro
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> Please tell me how the Nikkei index losing shitloads of money hours before an American market even opened, which dragged global markets down, is the VP's fault; if you seem to think that the President mismanaging a public health emergency somehow wasn't the President's fault.
I didn't. WTF are you talking about?
Also, it's cute how you said indexes are "WAY up" over the last three years... Why didn't you say two years? Oooohh, right.
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Circuits breaker did trigger in japan.
You know it's bad when... (Score:5, Insightful)
You know it's bad when the financial news manages to break through into video gaming and tech news sites. I don't really keep up with day-to-day market action, but one of my gaming sites was reporting first thing this morning that all of the Japanese video game companies were down double-digit percents in the last day, with the Nikkei as a whole taking its largest single-day drop since something like 1987. Now Slashdot is reporting on it (and in a timely manner, no less?!).
Downright frightening.
Re:You know it's bad when... (Score:4, Funny)
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I'm not complaining about it being reported here, lest you think otherwise. Just commenting that if the news is breaking outside financial circles, it's likely significant.
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"Higher loads render servers overloaded. More at 11, twenty years ago today."
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Corporate greed and price gouging have finally come to a boiling point. Groceries are damn near double what they were pre pandemic levels and there is no reason for it. https://www.usinflationcalcula... [usinflatio...ulator.com]
Oh wait there is a reason. https://fourweekmba.com/the-kr... [fourweekmba.com]
Even McDonald's has started to price themselves out of the market. https://www.reuters.com/busine... [reuters.com]
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Some things are hard to not buy like food, but everything else can be voted down with your wallet and a little bit of perseverance and willingness for inconvenience.
The modern customer simply doesn't care, it's just a larger number in the debt bucket. Plus everyone got a raise to cover some of this inflation - which contributes to higher costs for the Corporatio
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Not everyone did. Some corporations just refuse to pay cost-of-living increases to anyone outside the C-suite, and provide endless excuses.
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You can blame Corporations sure, but if people refused to pay the ridiculous price increases this wouldn't have continued to the point it has.
Yes I'll just stop buying groceries and spend a few million getting a hobby farm up and running.
Re:You know it's bad when... (Score:4, Insightful)
Companies raised prices during the pandemic because there were legitimate supply chain issues. Costs never came down. That is the problem.
Re:You know it's bad when... (Score:4, Interesting)
To be clear, Trump instituted over half of the M2 inflation in his payouts to business. Many of these are under review for shady payouts. Biden directed slightly less in total to individuals. Should his have been more targeted to those who really needed help? Yes.
Both are to blame for the spike in M2 that produced the inflation during the shutdown. Also, there were, and still are, supply chain issues and problems due to warfare and terrorism affecting shipping, particularly. Weather effects - whether drought, hurricane, fire or other - have jacked up insurance prices that you can add to your increased cost list. And yes, not so much greed but the attempt to rebuild cushions for downturns is a reality for many industries that went through lean years where many completely failed and some hung on by a thread. Some industries are still not seeing the levels they were seeing before the shutdown happened because people aren't spending as freely or they can't get the parts they need to build with. To meet the bills, they raise prices.
The shutdown was bad for everybody, but still around 1 in 300 Americans died. More would have died without a shutdown. Masking fully implemented would have reduced spread from infected people, although not doing as much on the reception side with poorly fitted masks.
But you can't blame the delusions just on the left. The delusions are equally split. Thinking pro-tariff Trump could have done better is just as delusional in those on the right. Macro economic forces are huge and hard to shift. The Fed, for example almost always waits till a recession is a forgone effect to start easing and waits too long to start tightening. And they may well have done it again this July.
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Quote all the sites you want.
"no reason for it?!"
Wow. Just.. speechless. I guess you believe, prima-facie, the "it's the merchants greedily raising prices!"
Fuel costs more. Tires cost more. Warehouse space costs more. Production costs more. Raising the crops costs more. What is everyone along the supply chain supposed to do with increased costs? Eat them? That's what you, and Warren, and Biden are suggesting, isn't it? That it's the greedy merchants?
Umm... I'm pretty sure that the Fuel, the Tires, and the Warehouse Space you cite are also provided by "merchants". So what is their reason for increasing prices? If they aren't gouging, then maybe it's the merchants who supply what they're offering, or maybe it's the other merchants who provide the food and clothing for them and their families?
Your argument is as senseless and as circular as the economy is, 'cause it's "merchants all the way down".
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Groceries are damn near double what they were pre pandemic levels and there is no reason for it.
Sure there is. Increased share prices.
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Don't feed the propaganda, they're up more like 25% [cnbc.com] to 26% [yahoo.com] (not that that's an insignificant amount)
And the current (June 2023 to June 2024) yearly rate of 3% [usda.gov] is less that the 3.9% rate at the last election.
Since the start of the pandemic, grocery prices have risen 25%, the report also found.
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Maybe he adds the shrinkflation.
Possibly WAI (Score:3)
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Sounds like (Score:2)
as plausible a theory as any others I have heard.
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https://qz.com/warren-buffett-... [qz.com]
Re: Possibly WAI (Score:1)
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How can anyone still defend, with a straight face, the idea that supply and demand curves dictate prices? In actuality how obvious is it that prices are so heavily manipulated due to the outsize influence of certain individuals and institutions, that all the supply and demand factors are driven out of prices, leaving psychological noise as their predominant nature?
Further: if prices are noise, and inflation just noise upon noise, why isn't indexation of incomes and savings to price rises the best public pol
Re: Possibly WAI (Score:2)
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When the reason for selling is selling, rather than some external factor, putting the brakes on can help preserve market value.
If your market is that fragile, then you don't really have a market do you? Darwin can not do his magic if we are constantly interfering. We will end up with the worst possible outcome eventually. Guaranteed.
Inverted yield curve? (Score:2)
and the yield curve briefly inverted
The yield curve has been in an inverted state for over a year already. What's happening now is that it could return to normal. Normal being that if you want to lend out your money for a long time you get a higher interest rate, not a lower.
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and the yield curve briefly inverted
The yield curve has been in an inverted state for over a year already. What's happening now is that it could return to normal. Normal being that if you want to lend out your money for a long time you get a higher interest rate, not a lower.
Yes, the end of CHEEP MONEY is now penetrating the markets. Here comes THE PAIN.
Ppl worldwide that bet on "carry trades" are now getting squeezed because they might have bought into high interest rate bearing investments with very low interest loans of Japanese Yen. Now that the Yen's value is rising that cheep money is squeezing out the profit margin on those "carry trades" so people are selling selling selling in hopes of getting out of those "carry trade" investments before they are forced to take a bath
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What if you have things backwards?
Did you know that the cross-currency basis makes the carry trade actually go the other way: start with dollars, swap into yen, then when you swap back into dollars you get more than you started with, because of the cross-currency basis?
Also, in panics like now, don't US bonds typically become safe havens, so the interest rates actually go down, decreasing the cost of borrowing?
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Playing with FOREX transactions can get pretty complicated so I simply avoid that stuff. Plus the fact you need up-to-the-minute info to survive in that trading. IMHO options trading is only slightly less stressful than FOREX trading, and both can jack your blood pressure to the Moon.
In the USA yes, money will move towards bonds when the market is perceived to be entering or is in a recession. Are bonds a safe bet? In a bankruptcy scenario, better than being a shareholder. Otherwise, better than stuffing yo
Recession (Score:5, Insightful)
Re:Recession (Score:5, Insightful)
Weak job market, market sell off, companies quietly getting rid of employees. Seems like the Covid recession is finally here
The R word isn't going to be permitted with the election cycle so close and the establishment incumbency on the line.
Re:Recession so (Score:2)
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They've been blowing smoke up our ass for the past 3 years about inflation and how great the economy is, so I don't see how you could possibly be wrong.
Things have been in recession for quite some time. We never actually recovered from 2008, so this is effectively just round 2...
Republicans pushing Market Crash narrative (Score:3)
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Of course it is.
Republicans are always happy when America loses. And when the country loses on their watch, they just lie about the loss and say it never happened.
FYI 8 of the 10 biggest 1-day sell-offs happened on Trump's watch. Today doesn't even make the top 10. Were they all saying the same shit on those days about him and his administration?
Last week media was saying the economy was great (Score:2)