Wednesday, September 10, 2008

This Really Instills Confidence

What does it say for our financial markets when some moron can mistake a 6 year old story for news which in turn causes a stock to drop 75%?
A worker at a Miami investment advisory firm called Income Securities Advisor, which publishes news alerts that get distributed to the Bloomberg News Service, did a Google search on bankruptcies this morning and got back search results that included a six-year-old story published in the South Florida Sun Sentinel about the 2002 bankruptcy filing by United Airlines.

And
Panic ensued, as they say, and United Airlines stock price plummeted 75 percent (down from $12.30 to $3 a share) before someone realized it was an old date and things righted themselves. The stock rebounded to $10.92 a share by Monday's closing. But not before United Airlines contacted the Sun Sentinel and demanded the newspaper retract its (6-year-old) story.

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