Small plane crashed into Milan skyscraper. CNBC said nothing for about 3 minutes, then went into a long commercial break, and only mentioned it after that. To be fair, CNN and FOX also took their time.
A small tourist plane hit a skyscraper (Pirelli skyscraper) in central Milan, Italy. It is one of the symbols of Milan, Italy's financial capital, and stands 400 feet tall. The city's stock exchange suspended share trading after the incident.(Reuters)
Why do you suppose the market went down so hard when it looked like terrorism, and came back when it looked like an accident? While tragic, the damage is the same either way. I don't really understand the markets violent reaction to possible terrorism .
Why should anyone think that? Just because the plane hit at almost 6PM local time? Or that this is one of the tallest buildings in Milan? Or that because this building has offices for the local government and is a symbol of the Italian industrial power? Or because planes don't really fly in this area? Or.... I guess everyone else knew the answers to these questions in the first minutes, except us Americans. :eek:
Same thing as 2 years ago. Higher unemployment -> market upside since less interest rate hike fears. Markets reflect principles of evolution. They are highly unsocial, not to say cruel.
While the physical damage to the building is the same, how would anyone know if this was just an accident or just the first of many terrorist acts to come? My crystal ball is broken. I'm guessing the one at the NYSE is also. I also don't think that the comments by an Italian official that this was a possible terrorst attack didn't help matters.