Stock Market Drop Feb 27 2007

The stock market drop on Feb 27 2007 interested many because it was sudden, and perhaps more because there was a huge drop of more than 200 points within a few minutes at one point. (This turned out to have been caused by a computer glitch, from overloaded systems updating suddenly.)

Mike Breland proposed looking at it, speculating that it might have brought many people to a shared state of excitement. From experience, we know this may not be enough to produce any effect on the EGG network -- after all, there are winners and losers, and there certainly is no love or compassion involved. In any case, we thought it was worth an exploration. Mike also notes other reasons it might not have a notable effect: "First is the obvious one that because it happened over a day, vs. an instant event of tsunami, earthquake, etc., that is why it did not show up. The second and less obvious one is that perhaps there was less effect because the people affected are spread all over the US and even past that and there aren't that many people involved in the market directly anyway."

The analysis shows very much the level random walk we expect when there is no "global event" pushing the network.

Stock Market Drop
Feb 27 2007

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