When Old News is … Bad News

United Airlines stock temporarily dropped a *billion* in value, apparently on the basis of a Google news routine that surfaced an OLD bankruptcy filing story that made it to Bloomberg which then created a stir in investment circles.

Still reading the details of this story,but it looks to me like support for the idea that the stock market incorporates news in ways that can be dysfunctional.    A common misconception is that insiders are making all the money when in fact many insiders actually *cannot* trade as easily as outsiders thanks to SEC rules.  However you’d have to be naive to think that there are not many abuses in the system – mostly I think from complex, quasi-legal arbitraging of huge positions by the big players.