Limit Down

I like that term although it's never good. Catchy though.

Most Asian exchanges have a limit to the maximum a stock can move in one day. After a stock hits that limit, it cannot trade again that day outside the limit. Period. If I remember correctly it's around 7% in most markets. "Limit down" has all kinds of implications, including the lack of liquidity if an investor is willing to sell outside the limit, and the lack of price discovery inherent in the halt in trading.

Asian markets are opening and most large financials over there are limit down. The Lehman and Merrill developments are shocking for sure, but this AIG balance sheet really needs to get unraveled in a hurry.

If one more charatan comes on the tube and says that either the Fed has been doing a wonderful job or that the U.S. economy is in wonderful shape, I'm going to start watching wonderful games shows.