A lesson in Dead Cat Bouncing

DeLongToday: Warning Clip from Last Week

What was the sudden stop about? None of us knew ex ante, that is why we call it Black. So the answer was, go home and we will figure it out later. All the aggregate data collection is initially off because we just dumped a ton of uncertainty, who knows? No one knew at the time.

The bouncing about after the shock is ex post figuring,  who is really leaving and going. Pricing is mostly ex post, how much we should have charged had we known, at the aggregate level. It is the bounded uncertainty of transaction band limits.