Well, I think the difference is that the NYSE is located in the same neighborhood where two 100 story buildings literally crashed to the ground. People couldn't go into that neighborhood. Once people could get back in, it re-opened.
I just think closing markets in hard times is a bad idea unless it is logistically impossible to keep them open. It just leads to panic and lack of faith in those markets.
They also banned short selling for a time in 2008 and I believe in 2001. The idea was to keep people from betting against the market and also having what is called a short squeeze when the markets go up and the shorts all have to cover and close their positions. It also leads to much less efficient markets, so I doubt they will do it this time around.
I work for an asset management company and we had a call this morning. There is basically little to no liquidity in the market, which isn't that surprising, but the level is. Even risk free assets like treasuries are very hard to make a market in right now. Risk assets like equities are off the charts. Our CIO was estimating that 80-90% of the volatility and price drops is just from not being able to sell most assets, not from the volume of selling.
WrongVerb (03-16-2020)
Doug does make a good point about how the markets (not all I don't think) were closed for that long after 9/11. In the last few weeks there has been an extreme amount of volatility in the markets. Closing things down for a few days could help calm things down (at least a little).
How big is an economy where nobody can do anything but shop online and at grocery stores? What S&P 500 number, on fundamentals, makes sense when companies have to weather that for months?
A lot of businesses are dead and just don't know it yet.
Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves. -- Carl Sagan (Pale Blue Dot)
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