Re: Which events may cause trading gap on stock market?
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A couple of examples are:
Ike's heart attack (or stroke) back when he was president (1954 - 1960) would be a good example. Also some of the brain surgeon hedge funds guys and their hedge funds almost induced a total market collapse back in mid 1997 (or was it mid 1998).
The thought was that the specialists went out and bought up most of the available capital when President IKE had his heart attack -- this buoyed up the market until could adjust somewhat back to normal.
Also the rumor was that Warren Buffet offered to buy out some hedge funds at bargain prices back in 1997 or 1998. Ths may have helped some to stop the bleeding at that time.
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You're probably referring to the Long Term Capital Management federal bailout.
There's a book about it, called "When Genius Failed" - it's a sweet read.
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